State colleges and universities have yet to respond adequately to this problem. Conclusions Research has found that higher education is associated with substantial earnings premiums in the job market. The rate of return on education, however, varies with such factors as family background and innate ability. During the next century, higher education will become increasingly important for landing high-paying jobs. But for the foreseeable future, many jobs will require no formal schooling beyond high school.
Returns vary greatly across programs of study.
The state should expand access to these programs. In instances where the programs are particularly expensive for the schools to offer, it is appropriate to charge students higher tuition. Students of ability from economically disadvantaged backgrounds might decline to invest in higher education because of financial risk. The state should give such students grants and tuition subsidies. This Special Report is the fourth in a series of reports on higher education made possible, in part, by the support of the M.J. Murdock Charitable Trust and the Ben B. Cheney Foundation.