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Research Shows High Annual Return for College DegreeJun 28, 2012
Bloomberg – According to research by Enrico Moretti, a professor of labor and urban economies at the University of California Berkeley, a college degree produces an annual return of 15% more in income, adjusted for inflation. Mr. Moretti points out that America is currently undergoing an academic divide in terms of education, wealth, living standards, and residence. Cities like Seattle, Boston, and Raleigh-Durham attract college-educated employees interested in technology, and as a result benefit from higher wages and longer life expectancy. Although the Internet has made it possible for employees to work from anywhere, people continue to move to areas reflecting their interests and education levels, such as Silicon Valley outside San Francisco. Mr. Moretti argues that the same holds true for less-educated individuals, who stay in economically depressed areas and endure lower wages and related problems. His research indicates that a college education remains the best way to get ahead and that the greatest cultural struggle isn’t between the 1% and the 99%, but between those with and without college degrees. For more, read Looking for 15% Returns? Think College, Not Stocks, Bonds: Books.