Thread by @Noahpinion

Today's @BV post is about why college helps the poor, but may also raise inequality. bloomberg.com/view/articles/…

The post discusses the findings of @TimBartik and my old classmate Brad Hershbein (research.upjohn.org/up_workingpape…).

They find that people of all backgrounds have a college earnings premium, though it varies from group to group.

College is especially important for black people.

Most surprising stat from the paper: Black people from low-income backgrounds who go to college tend to earn far MORE than white people from low-income backgrounds who go to college!

Poor people also get the biggest college premium in percentage terms, and a much larger dollar premium than the working class.

But in dollar terms, the rich get the biggest premium.

College appears to be good for poor people and black people, OK for working-class white people, and GREAT for upper-class white men.

Why is college so great for the earnings of upper-class white men?

Possibly because it's in college that upper-class white men cement the personal/professional networks that determine success in the American economy.

Is the solution to get rid of college? No. Upper-class white men will just find some other way to network. Instead, the key is to get upper-class white men to network with people other than each other, during college.

That's it for the post, but two disclaimers:

1. This kind of research will NOT tell you if you should go to college. That depends on your personal situation, your talents, and your goals.

2. This kind of research does NOT tell us college's overall value to society.

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