As shown below, an individual with a professional degree earns approximately 100% more than a college graduate and an individual with a bachelor’s degree earns approximately 70% more than a high school graduate in their lifetime.
Education and Wage Disparity: Lifetime Earnings (Ages 18-64)
(in millions)
$6.0 $5.0 $4.0 $3.0 $2.0 $1.0
$0.0
1991 1995 1999 2003
=—— Professional Degree Bachelor's Degree ==" High School Diploma
Source: U.S. Census Bureau.
Despite the results of the study shown above, 35% of Americans over the age of 18 have not graduated high school. Only one-third of the 25% of Americans who have received a bachelor’s degree, or 8%, have received a graduate degree."®
Studies by Nobel Prize winning economist James Heckman suggest that the highest rate of return within education is generated through an investment in early childhood programs. Heckman’s study asserts, “The rate of return to a dollar investment made while a person is young is higher than the rate of return to the same dollar made at a later age,” as illustrated below:
Preschool “A Programs
School Opportunity
Return Cost of Funds
"4 Job Training
Preschool School Post School
Age Source: August 2002 study, James Heckman, University of Chicago.
Due to the high rate of return of investments in ECE and the principles underlying the theory of human capital, KUE has made its largest initial investment in KLC, the largest company serving the ECE market
in the world.
"6 Source: U.S. Census Bureau.
62
HOUSE_OVERSIGHT_024495