A 2008 study by two Harvard economists notes that the labor-market premium to skillor the amount college graduates earned thats greater than what high-school graduate earneddecreased for much of the 20th century, but has come back with a vengeance since the 1980s. In 2005, The typical full-time year-round U.S. worker with a four-year college degree earned $50,900, 62% more than the $31,500 earned by a worker with only a high-school diploma.
Theres no question that going to college is a smart economic choice. But a look at the strange variations in tuition reveals that the choice about which college to attend doesnt come down merely to dollars and cents. Does going to Columbia University yield a 40% greater return than attending the University of Colorado at Boulder as an out-of-state student ? Probably not. Does being an out-of-state student at the University of Colorado at Boulder yield twice the amount of income as being an in-state student there? Not likely.
No, in this consumerist age, most buyers arent evaluating college as an investment, but rather as a consumer productlike a car or clothes or a house. And with such purchases, price is only one of many crucial factors to consider.
As with automobiles, consumers in todays college marketplace have vast choices, and people search for the one that gives them the most comfort and satisfaction in line with their budgets. This accounts for the willingness of people to pay more for different types of experiences . And just as two auto purchasers might spend an equal amount of money on very different cars, college students often show a willingness to pay essentially the same price for vastly different products. So which is it? Is college an investment product like a stock or a consumer product like a car? In keeping with the automotive worlds hottest consumer trend, maybe its best to characterize it as a hybrid ; an expensive consumer product that, over time, will pay rich dividends.
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