In 2006, young adults ages 25–34 with a bachelor’s degree earned 28 percent more than young adults with an associate’s degree and 50 percent more than young adult high school completers.

Measured in constant 2006 dollars, median earnings for young adults ages 25–34 who worked full time throughout a full year increased as education level increased for each year shown between 1995 and 2006 (see tables 20-1 and 20-2). For example, young adults with a bachelor’s degree as their highest degree consistently had higher median earnings than those with less education. This pattern held for male, female, White, Black, Hispanic, and Asian subgroups.

In 2006, the median earnings of young adults with a bachelor’s degree were $43,500, while the median earnings were $34,000 for those with an associate’s degree, $29,000 for high school completers,¹ and $22,000 for those who did not earn a high school diploma. In other words, in 2006, young adults with a bachelor’s degree earned 28 percent more than young adults with an associate’s degree, 50 percent more than young adult high school completers, and 98 percent more than those who did not earn a high school diploma (see table 20-1). In 2006, the median earnings of young adults with a master’s degree or higher were $50,000, or 15 percent more than young adults with a bachelor’s degree.

The earnings difference between those with at least a bachelor’s degree and those with less education increased between the longer period of 1980 and 2006. However, between 2000 and 2006, 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 $14,600 more than those who did not earn a high school diploma or its equivalent. In 2000, this difference increased to $23,400 and was $23,000 in 2006.

In 2006, Asian young adults with a master’s degree or higher had higher earnings than their White, Black, and Hispanic counterparts (see table 20-2). Unlike in earlier years, there were no measurable differences in earnings among White, Black, and Hispanic young adults with a master’s degree or higher in 2006. In 2006, the average median earnings of Asian young adults with a master’s degree or higher were $60,000, while the average median earnings for their White, Black, and Hispanic peers were between $48,000 and $50,000.

¹ Includes those who earned a high school diploma or its equivalent (e.g., a General Educational Development [GED] certificate). (back to text)