At the National Association of College and University Business Officers Annual Meeting on July 21, 2014, Bill Gates delivered an address on the “Future of College” in America. A transcription is on Mr. Gates’s blog.
Looking at the individual level of opportunity, do people have equal opportunity? The data we see shows that, unless you’re given the preparation and access to higher education, and unless you have a successful completion of that higher education, your economic opportunity is greatly, greatly reduced. There’s a lot of data recently talking about the premium in salaries for people with four-year college degrees. In 2013, people with four-year college degrees earned 98 percent more per hour, on average, than people without degrees. That differential has gone up a lot. A generation ago, it was only 64 percent.
If you look at the numbers more closely, you will also see that unemployment, partial employment, is primarily in people without four-year degrees. Our economy already is near full employment for people with full year degrees. And, so, the uncertainty, the difficulty, the challenges, faced, if you haven’t been able to get a higher education degree, are very difficult already today. And, with changes coming in the economy, with more automation, more globalization, that divide will become even more stark in the years ahead.
So, if we’re really serious about all lives having equal value, we need to make sure that the higher education system, both access, completion, and excellence, are getting the attention they need.
It is unfortunate that, although the US does quite well in the percentage of kids going into higher education, we’ve actually dropped, quite dramatically, in the percentage who complete higher education. We have, amongst developed countries, the highest dropout rate of kids who start. And, understanding why that happens is very, very important. For many of those kids, that experience is not only financially debilitating, being left with loans that are hard to pay off, but, also, psychologically, very debilitating, that they expected to complete, they tried to complete. And, whether it was math or getting the right courses, or the scheduling, somehow, they weren’t able to do that, which is a huge setback.