Monday, January 6, 2014

Financial Benefits of Higher Education Past Age 65

The phrase "Education Pays" is a familiar one in the our division of the Employment Department. Our poster with the same title shows why: those with more education generally tend to make higher wages. A newly released report from the Institute on Women's Policy Studies (IWPS) shows that the financial impact of higher education lasts past the age of 65.

In a National Public Radio (NPR) story about these findings, a co-author of the report notes that those with post-graduate degrees will make three to five times more after the age of 65 than someone with a high school diploma or less education. One reason: occupations that require higher education are generally less physically demanding, so these workers tend to stay in the workforce longer.

The report also takes a look at gender differences, showing that men tend to earn more than women after the age of 65. The report cites occupational mix as a reason: where women are more likely to be teachers, for example, men are more likely to be (higher-earning) surgeons or judges. The NPR report notes though that this occupational mix is specific to those currently age 65 and older, and that difference is expected to shrink over time.

You can find more details in the full report from IWPS, or in the NPR story.

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