The Way Not to Fix Education, Housing, and Health Care

"University of Chicago economist Kevin Murphy has conclusively documented that the returns — in the form of additions to lifetime real income — to college education increased impressively during the last quarter of the 20th century. While this growth in returns to higher education has slowed, or perhaps even stopped, since around 2000, high school graduates who today attend college can still expect, as a result, much larger additions to their lifetime incomes than could such high school graduates of the mid-1970s.

And so insofar as a college education is valued because of its contribution to one’s ability to earn income, a college degree today is an asset with a much higher expected return than was a college degree earned 40 years ago. As with all assets whose returns increase, the price of this asset rises to reflect those higher returns."