A couple years ago, a district superintendent gave an astonishing quote to his local newspaper stating his belief that the only relevant measure for school quality and the evaluation of school districts is the high school graduation rate. The section from the article reads:
“’The only research finding about school accountability that has been true ever since we started school research is that young people with a high-school diploma have a vastly, vastly improved opportunity for success than young people without them,’ Wood said. That’s the only metric that matters in the evaluation of school districts, he argued.”
He is right, of course, that a diploma remains a gateway to opportunity and that students who drop out are sure to face immense challenges. But to suggest that graduation rates are all that matter is madness. What the superintendent seems to neglect is that a high school diploma—as a “terminal degree”—doesn’t get young people all that far either.
Consider data from a recent report published by our national office on college “earnings premiums.” Conducted by John Winters of Iowa State University, the analysis finds that Americans with bachelor’s degrees as their highest credential earn on average about $93,000 per year compared to $50,000 for adults with only a high school diploma[1]—a difference that is equivalent to an 85 percent earnings premium. Among those with an associate degree as their highest credential, the premium is predictably smaller at just 19 percent, but is still nothing to scoff at, especially considering the lower cost of obtaining a two-year degree.
Here in Ohio, Winters uncovers similar results. Statewide, those with bachelor’s degrees earn salaries that are 78 percent higher than adults with only a high school diploma (about $85,000 versus $48,000 per year), while the earnings premium for individuals with an associate degree clocks in at 17 percent. In the two metropolitan areas analyzed, the premiums for bachelor’s and associate degrees in Cincinnati are 90 and 24 percent, respectively, and in Cleveland, 77 and 14 percent.
These findings, of course, follow a long line of research showing that post-secondary credentials pay off. Over the course of an entire career, these premiums amount to huge differences in lifetime earnings. While money isn’t everything, the financial implications are not hard to imagine: the ability to purchase a home of one’s own, invest in children’s education, and occasionally take a nice vacation. As we’ve seen during the current economic crisis, those with college degrees are more insulated from layoffs. Why such differences surface remains an important question, but the bottom line is that college educated adults command higher wages in today’s economy and enjoy more financial security.
The clear implication of these data is that schools must continue working to prepare students to succeed in post-secondary education, whether that’s completing two- or four-year degrees or earning technical credentials. Just getting students to the high school finish line doesn’t cut it anymore. This has concrete policy implications, too, particularly when it comes to gauging school performance and reporting student outcomes. More specifically, Ohio should:
1. Maintain its “prepared for success” report card component. This relatively new report card dimension offers a necessary complement to graduation rates by including more rigorous measures of post-secondary readiness. Within this component, schools receive credit when high school students achieve remediation-free scores on the ACT or SAT, earn industry-recognized credentials, or meet honors diploma standards. They also receive extra points when students pass Advanced Placement or International Baccalaureate exams or earn dual-enrollment credits. Despite the importance of including such measures, some have criticized the component, and the state’s superintendents association has argued for its elimination. Following that path, however, would weaken the public’s understanding of readiness for post-secondary education—where the real payoff lies. Instead of hiding the ball, Ohio should seek ways to improve the measure but continue to shine a light on student readiness through this component of the state report card.
2. Align its proficiency standard with college and career ready benchmarks. Proficiency rates have long been the most prominent yardstick of pupil achievement. But many are likely unaware that scoring proficient on the state test does not indicate being on-track. Rather, as the state itself acknowledges: “The accelerated level [i.e., one level above proficient] suggests that a student is on track for college and career readiness.” To erase confusion about the meaning of proficient, Ohio should match its proficiency standards with college and career ready standards, something that other states have accomplished. For instance, Massachusetts ensures that “meeting expectations” target indicates that students are “on track to be ready for success in college and careers.”
3. Report college completion rates by bachelor’s and associate degrees. Though adults with either two- or four-year degrees enjoy significant earnings premiums over those with a high school diploma only, differences remain between the two college degrees. To its credit, Ohio already reports college completion rates for each district and high school on their report card (for information purposes, not for calculating ratings). While this is an excellent start, we don’t know how many students completed an associate versus bachelor’s degree. All that’s available is a combined rate. Reporting completion rates separately by degree type would enhance transparency, giving parents and the public an even sharper picture of success after high school.
Young people who complete college have vastly superior economic outcomes than their peers whose last stop in the education system is the twelfth grade or less. That’s not to say that individuals holding high school diplomas, or even dropouts, cannot live productive, fulfilling lives. But these earnings premium data should make us pause and rethink whether it’s fair to say that a high school diploma is enough.
[1] The study focuses on average (mean) incomes rather than median incomes. Both are valid statistics, but average incomes are significantly higher than the median. In an appendix, the study shows that earnings premiums for bachelor’s degrees are somewhat smaller using median incomes (e.g., 85 to 71 percent nationally), while associate degrees are more similar.
