Friday, Jul 24, 2026 The claims desk. Receipts included. POWERED BY LENZ
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FINANCE

The Claim

Having a college undergraduate degree increases a person's earning potential compared with not having a college undergraduate degree.

The Short Version

Across major U.S. datasets, bachelor’s degree holders earn substantially more on average than people without a four-year degree. The earnings premium appears consistently in NCES, Labor Department, and Federal Reserve data and remains sizable despite some recent narrowing. The main caveat is that this is an average population pattern, not a guarantee for every individual or field of study.

Caveats

  • This describes average earnings patterns, not a guarantee that every graduate will out-earn every non-graduate.
  • The size of the earnings premium varies materially by major, occupation, demographics, and institution type, and it has narrowed somewhat in recent years.
  • Higher gross earnings do not automatically mean higher net financial benefit once tuition, debt, and forgone earnings are considered.

The Receipts

  1. COE - Annual Earnings by Educational Attainment

    National Center for Education Statistics (NCES)

  2. Median usual weekly nominal earnings: Wage and salary workers: Bachelor's degree and higher: 25 years and over

    Federal Reserve Bank of St. Louis (FRED)

  3. What happened to the college wage premium?

    Federal Reserve Bank of Minneapolis

  4. Falling College Wage Premiums by Race and Ethnicity

    Federal Reserve Bank of San Francisco

  5. Median weekly earnings by educational attainment and sex

    U.S. Department of Labor

  6. The College Wage Premium

    Federal Reserve Bank of Cleveland

  7. Why Do Wages Grow Faster for Educated Workers?

    National Bureau of Economic Research

  8. What a bachelor's degree is worth today: a comparative survey of job prospects, earnings, and perceived career alignment for graduates and non-graduates across majors and demographic groups

    Frontiers in Education

  9. What are the average salaries for four-year college graduates?

    USAFacts

  10. How does a college degree improve graduates' employment and earnings?

    Association of Public and Land-grant Universities (APLU)

+ 4 more sources — see the full list on Lenz

Filed Under

United States

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