In this era when higher education is more costly than ever, even adjusting for inflation, what is the value of college and beyond? Those that point out that education can be gotten for free at a public library are correct. If one wants to learn about economics from UCI, the courses needed are listed publicly, with class websites having the syllabus and textbook information. That means that someone could individually do every class and get the exact same knowledge as a registered student. This is considered “human capital.”

However, the value of higher education comes from the “signaling” model of education. A college degree “signals” to an employer that the individual is motivated and hard working, and thus be chosen for a position. Hiring anyone is a risk, and employers try to reduce that risk as much as possible through these signals. The signal validates the hiring manager in making the decision, as the hiring manager can always use the degree as a reason for the hire when something goes wrong. It’s easy to fall back on “this person went to Harvard” when a hire goes bad.

Plus higher education is supposed to be fun, a time to hang out with one’s peers. Experiences have been shown to have a longer effect on happiness than material objects, and educational experiences can last for a lifetime. But this has to be qualified by the fact that all of this is situational and timing matters. In some companies, an additional degree may not mean that much as compared to continued work experience. These are all things to keep in mind when making decisions.