Attention Economy


Monday, September 10, 2012

The Economics of Higher Education


Newsweek’s cover story – “Is College a Lousy Investment?” by Megan McArdle – is quite good.

A couple of highlights from the article:

“It’s very easy to spend four years majoring in English literature and beer pong and come out no more employable than you were before you went in. Conversely, chemical engineers straight out of school can easily make triple or quadruple the wages of an entry-level high-school graduate.”

“When I was a senior, one of my professors asked wonderingly, “Why is it that you guys spend so much time trying to get as little as possible for your money?” The answer, Caplan says, is that they’re mostly there for a credential, not learning. “Why does cheating work?” he points out. If you were really just in college to learn skills, it would be totally counterproductive. “If you don’t learn the material, then you will have less human capital and the market will punish you—there’s no reason for us to do it.” But since they think the credential matters more than the education, they look for ways to get the credential as painlessly as possible.”