Question

What has happened to the earnings gap over the last 20 years between college graduates and those with only a high school education?

a) The earnings gap has increased, with college graduates earning more compared to those with only a high school education.
b) The earnings gap has decreased, with college graduates and those with only a high school education earning more equally.
c) The earnings gap has remained constant, showing little change over the last 20 years.
d) The earnings gap has reversed, with those with only a high school education earning more than college graduates.

Answer 1

The earnings gap between college graduates and high school educated individuals has widened over the past 20 years, largely due to the declining value of a high school diploma and the moderate increase in the value of a college degree.

Explanation:

College graduates and those with only a high school :

The earnings gap has increased over the last 20 years between college graduates and those with only a high school education. This is largely because the value of a high school diploma has significantly dropped, whereas a college degree has seen a moderate increase in its value. The majority of jobs now require some form of post-secondary education, a trend contributing to a rise in income inequality within the United States.

According to the National Center for Education Statistics, a college graduate earned about 30% more than a high school graduate in 1980, but by 2014, the premium for college graduates had more than doubled to 66% more than their high school educated peers.This is due to a few factors. Firstly, the majority of jobs in the 21st century require at least some post-secondary education, making a college degree more valuable.