Trends in opportunity costs of U.S. postsecondary education: A national HRD and human capital theory analysis

Abstract

The purpose of this study was to explore opportunity costs of postsecondary education in the U.S. in the past three decades (1975‐2005), as a measure to support investment decisions at national levels and as experienced by individuals deciding on pursuing further education. Based on human capital theory and inspired by a set of studies aiming at investment decisions in education, official data from the U.S. Census (i.e., CPS), along with parameters for high education achievement, were fed into a forecasting model developed for this purpose. The model included parameters for degree completion rate, time for completion, expectation of working years, retirement age, inflation and interest rates for time value of money adjustments focusing on marginal annual income flows. Seven research hypotheses were tested under this ex post facto design employing elements of both descriptive and causal‐comparative research methods. The primary finding is that the postsecondary education opportunity costs for both males and females have been increasing in the analyzed period, along with a significant correlation with enrollment rates. When considering opportunity costs of bachelor's degrees across gender, the trend is somewhat steady. However, in the case of advanced degrees, there appears to be an increase in the absolute gap based on gender in the second half of the analyzed period. Beyond descriptive statistics, trends, and prediction models of opportunity costs for bachelor's or advanced degrees, findings on college premiums and gender differences are discussed in light of the National HRD framework.

Enriching HRD Education Through Professional Organizations

“…In terms of HRD education, these organizations play a major role in HRD's curricular scope (May, 2007;Trehan, 2004), quality of HRD academic programs (Rose & Naresh, 2006), HRD education (Akdere & Conceição, 2009;Cornacchione &…”

“…In terms of HRD education, these organizations play a major role in HRD’s curricular scope (May, 2007; Trehan, 2004), quality of HRD academic programs (Rose & Naresh, 2006), HRD education (Akdere & Conceição, 2009; Cornacchione & Daugherty, 2013; Kuchinke, 2002; Rocco & Plakhotnik, 2009), and HRD research (Doloriert, Sambrook, & Stewart, 2012; Harte & Stewart, 2010). We conclude that, for the future success and existence of the discipline of HRD, professional organizations and associations are vital for the HRD profession, education, research, and practice.…”

Strategic steps for Nigerian hospitality human capital development

“…Thus, higher income appears to correlate with a greater level of education. Cornacchione and Daugherty (2013) and Mertens and Röbken (2013) supported this argument quantitatively by investigating the benefits of postsecondary education, particularly with respect to the financial return. A common inference by the two pairs of authors, Cornacchione and Daugherty, and Mertens and Robken was that differences in people's earnings could be a result of the differences in their HC.…”

A Master's Degree in Fashion Merchandising: A Valuable Investment?

“…The benefits of investing in this degree are securing employment, particularly full-time employment, and earning a higher salary. 2) Because one of the potential benefits of pursuing a MFM degree is securing employment, career development return of pursuing a MFM is to be evaluated based on comparing MFM's contribution to graduates' employability and level of positions that MFM graduates actually have in the fashion industry (Cryer, 1998;Hodges, & Karpova, 2010;Cornacchione & Daugherty, 2013Kozar & Connell, 2013.…”