Copyright © 2006 Ed Bagley
Colleges and universities are fond of reminding anyone who
will listen that there is great value in earning a
bachelor’s degree. In the most recent statistics available
the U. S. Census Bureau tends to agree.
Results from the 2004 Census Bureau report shows a $23,000
difference between the average annual salary of adults with
a bachelor’s degree ($51,554) compared to adults with a
high school diploma ($28,645).
In what may or may not be an anomaly, the income gap
narrowed slightly from five years earlier when bachelor’s
degree graduates made nearly twice as much as high school
graduates.
The percentage of Americans 25 and older with a bachelor’s
degree rose to 28%, and the percentage with a high school
diploma rose to 85%. In 1970, 36 years ago, only 11% of
Americans had a bachelor’s degree and a little more than
half had a high school diploma.
It is probable that the increase over time has had much to
do with the advent of technology in our society, and the
impact of Internet accessibility to the general public in
1993 and 1994 through the creation of browsers.
If you are wondering, Minnesota, Utah, Montana, New
Hampshire, Alaska and Washington had the highest
proportions of adults with at least a high school diploma,
all at about 92%. Texas had the lowest with about 78%.
Connecticut had the highest proportion of adults with a
bachelor’s degree (37%) and West Virginia had the lowest
(15%).
I have long been a believer that there is no real
correlation between education and income unless the degree
leads to a high paying profession, such as a physician,
attorney or dentist. I have known too many people with
bachelor’s degrees working at McDonald’s restaurants.
My standard comment is that it is not like all people with
bachelor’s degrees make $100,000 a year and those with high
school diplomas make $30,000. I also have known many people
with only high school degrees and some high school dropouts
who make well in excess of $100,000 annually, especially in
sales.
Bill Gates is a college dropout who ranks as the richest
man in the world. Forbes magazine rates William H. Gates
III as the richest person in 2006 with $53 billion, proving
perhaps that even Harvard dropouts can make a lot of money.
You, dear reader, will have to decide for yourself how big
a difference in income is possible with a college degree
instead of settling for a high school diploma. There is no
question in my mind that the income gap will increase as
the upper and lower edges of our middle class are falling
away and the gap between the rich and poor in America
widens.
I also have found little correlation between talent and
income, intelligence and income and experience and income.
Is there anyone in America who has not heard of the
starving artist, or educated idiots in menial jobs, or
janitors becoming millionaires?
The only real correlation I have noticed is between people
skills and income. How else can you reasonably explain how
a high school dropout becomes a self-made,
multi-millionaire entrepreneur?
These successful entrepreneurs may not have perfect
subject-verb agreement when they speak, but they certainly
know how to relate to people in a meaningful way. You may
have noticed that the whole world steps aside for the man
who knows where he is going (ditto for women).
Also of note is the Bureau of Labor Statistics National
Compensation Survey which shows that white-collar earnings
average $21.85 an hour while blue-collar earnings average
$15.03 and service occupations average $10.40.
Source information for the following statistics come from
the Employment Policy Foundation.
The jobs that pay the most generally require at least a
bachelor’s degree (4 years of higher education) and several
also require graduate (master’s or doctorate) degrees. Here
are the average annual incomes during 2003 for the nation’s
Top 12 Paying Jobs:
Top 12 Paying Jobs Overall
$147,000 – Physicians and Surgeons
$133,500 – Aircraft Pilots
$116,000 – Chief Executives
$112,000 – Electrical and Electronic Engineers
$99,800 – Lawyers and Judges
$90,000 – Dentists
$85,500 – Pharmacists
$84,700 – Management Analysts
$84,000 – Financial Analysts, Managers and Advisors
$83,000 – Computer and Information System Managers
$80,000 – Marketing and Sales Managers
$80,000 – Educational Administrators
Top Paying Jobs That Generally Require an Associate Degree
or Certificates of Training
The jobs that pay the next best annual average salaries
tend to be technical in nature and generally require an
associate degree (2 years of higher education) and/or
job-specific training certificates. Here are the average
annual incomes during 2003 for the Top 6 Paying Jobs:
$66,000 – Healthcare Practitioners
$58,000 – Business Analysts
$57,000 – Electrical and Electronic Engineers
$56,800 – Mechanical Engineers
$54,000 – General and Operations Managers
$50,400 – Computer and Information System Managers
Top Paying Jobs That Generally Require a High School Diploma
These jobs generally require a high school diploma and
emphasize work experience and on-the-job training rather
than college degrees. Here are the average annual incomes
during 2003 for the Top 6 Paying Jobs:
$58,900 – Computer Software Engineers
$56,400 – Computer and Information System Managers
$55,000 – Computer Programmers
$49,000 – Network Systems and Data Communications Analysts
$48,000 – General and Operations Managers
$48,000 – Database, Network and Computer Systems
Administrators
Top Paying Jobs That Do Not Require a High School Diploma
These jobs tend to require substantial on-the-job training
and work experience rather than formal education and
specialized training. Here are the average annual incomes
during 2003 for the Top 6 Paying Jobs:
$36,400 – Bailiffs, Correctional Officers and Jailers
$36,400 – Legal Assistants
$36,000 – Industrial Production Managers
$36,000 – Drafters
$33,600 – Construction Managers
$31,900 – Electricians
Sometimes the sources for these statistics are not really
clear in the significance of their findings. You will
notice that whatever the educational level, the positions
for Computer and Information System Managers are mentioned.
It is the 9th highest paying job at $83,000 in highest
educational level, shows up at $50,400 with a two-year
degree and becomes the 2nd highest paying job at $56,400
for high school graduates.
The difference in salaries at different educational levels
could have to do with the size of the company the worker
serves. There is a difference in responsibility and
technical requirements for a company generating $10 million
in annual revenue as opposed to a company generating $100
million or $1 billion in annual revenue.
I believe it is also important to understand that many
people with Top 12 paying jobs are self-employed
professionals who are able to take many legitimate
deductions in their business tax returns that workers do
not enjoy.
Deductions lower their net taxable income. The earnings you
see here can be much lower than their actual earnings
because deductions can be “paper write-offs,” deductions
that result from depreciation, for example, that can amount
to thousands of dollars credit with no out-of-pocket
expenses.
It almost goes without saying that many savvy college and
high school graduates also have part-time businesses that
allow them legitimate deductions that lower the net taxable
income from their jobs.
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Ed Bagley is the author of Ed Bagley’s Blog, which he
publishes daily with fresh, original writing intended to
delight, inform, educate and motivate readers with articles
about Internet Marketing, Careers, Movies and Life. Visit
Ed at . . .
http://www.edbagleyblog.com
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