In 2007, young adults ages 25-34 with a bachelor's degree earned 29 percent more than young adults whose highest educational attainment was an associate's degree and 55 percent more than young adults whose highest educational attainment was a high school diploma or its equivalent.

For young adults ages 25-34 who worked full time throughout a full year, higher educational attainment was associated with higher median earnings. This pattern of higher earnings corresponding with higher levels of educational attainment was consistent for each year shown between 1995 and 2007 (see table A-17-1). For example, young adults with a bachelor's degree consistently had higher median earnings than those with less education. This pattern held for male, female, White, Black, Hispanic, and Asian subgroups.

In 2007, the median earnings of young adults with a bachelor's degree were $45,000, while the median earnings were $35,000 for those with an associate's degree, $29,000 for those with a high school diploma or its equivalent, and $23,000 for those who did not earn a high school diploma or equivalent degree. In other words, in 2007, young adults with a bachelor's degree earned 29 percent more than young adults with an associate's degree, 55 percent more than young adult high school completers, and 96 percent more than those who did not earn a high school diploma. In 2007, the median earnings of young adults with a master's degree or higher were $56,000, or 24 percent more than young adults with a bachelor's degree.

Comparing the median earnings of those with at least a bachelor's degree and those with each lower level of educational attainment, the earnings difference increased between 1980 and 2007, in constant 2007 dollars. However, over the more recent, shorter period between 2000 and 2007, there was generally no measurable change in the earnings difference between these groups. For example, in 1980, young adults with a bachelor's degree or higher earned $15,000 more than those who did not earn a high school diploma or its equivalent. In 2000, this difference increased to $24,000 and was $25,000 in 2007. In 1980, young adults with a bachelor's degree or higher earned $10,000 more than high school completers. In 2000, this difference increased to $18,000 and in 2007 it was $19,000. However, between 2000 and 2007, there was a measurable increase in the earnings difference between those with a bachelor's degree and those with a master's degree or higher. In 2000, young adults with at least a master's degree earned $7,000 more than their peers with a bachelor's degree. In 2007, this difference increased to $11,000.

Earnings differences were also observed by sex and race/ethnicity. In 2007, at every educational level, young adult males had higher median earnings than young adult females. For example, in 2007, young adult males with a bachelor's degree earned $50,000 while their female counterparts earned $40,000. In 2007, White young adults had higher median earnings than their Black and Hispanic counterparts at each educational level, with the exception of Hispanics with a master's degree or higher, which was not measurably different. Asian young adults with a bachelor's degree or master's degree or higher had higher earnings than their White and Black counterparts in 2007. In 2007, the average median earnings of those with at least a master's degree were $65,000 for Asian young adults, $58,000 for Hispanic young adults, $55,000 for White young adults, and $45,000 for Black young adults.

Technical Notes

High school completers includes those who earned a high school diploma or equivalent (e.g., a General Educational Development [GED] certificate). Earnings are presented in 2007 constant dollars adjusted by means of the Consumer Price Index (CPI) to eliminate inflationary factors and allow for direct comparison across years. For more information on the CPI, see supplemental note 10. Full-year worker refers to those who were employed 50 or more weeks during the previous year; full-time worker refers to those who were usually employed 35 or more hours per week. The Current Population Survey (CPS) questions used to obtain educational attainment were changed in 1992. In 1994, the survey instrument for the CPS was changed and weights were adjusted. For more information on changes to the CPS, see supplemental note 2. For more information on race/ethnicity, see supplemental note 1.