Accessible Version
Decomposing Changes in Higher Education Return on Investment Over Time, Accessible Data
Figure 1. Distribution of Median College/HS Earnings Ratio in 2018-19 for the 2007-08 Enrollment Cohort
The figure plots the distribution of the ratio of college to high school earnings for three categories of institutions: public, private non-profit, and private for-profit. The public and private non-profit distributions are centered close to a ratio of 2, with the private non-profit distribution having longer left and right tails. The private for-profit distribution is centered close to a ratio of 1.4, and has roughly 15 percent of the distribution less than a 1:1 ratio.
Source: Author’s calculations from College Scorecard
Figure 2. Distribution of Changes in College ROI Between the 1996-97 and 2007-08 Enrollment Cohorts
The figure plots the distribution of changes in institutional return-on-investment for three categories of institutions: public, private non-profit, and private for-profit. The public and private non-profit distributions are centered close to a 3 percent positive change, with the private non-profit distribution having longer left and right tails. The private for-profit distribution is centered has a mean of -5.8 percent, but has a considerably larger variance than the other distributions.
Source: Author’s calculations from College Scorecard
Figure 3. College Premium Changes Due to Compositional Shifts in Enrollment
The graph plots year on the X-axis and hypothetical college/HS earnings ratios on the Y-axis. There is a roughly “V-shaped” relationship over time, with the ratio starting around 2.2 in the late 1990’s, falling to 2.1 in 2010, and then rising again to 2.19 by 2018.
Source: Author’s calculations from College Scorecard