Economists at Federal Reserve Bank of N.Y. Say College Is Worth the Cost

Two economists at the Federal Reserve Bank of New York released a study on Tuesday concluding that, despite colleges’ growing costs and students’ lower earnings after graduation, attending college is still worth it, for the most part.

The study is the latest entry in the debate surrounding the value of a college education, a conversation that has been spurred by soaring levels of student debt.

The economists—Jaison R. Abel and Richard Deitz—note in the study that both bachelor’s degrees and associate degrees carry an average return on investment of roughly 15 percent. Despite falling earnings in the wake of the economic downturn, college remains worthwhile largely because earnings have also fallen for people without college degrees.

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