Earning Gap Found Between College Graduates From Different Backgrounds

REBECCA ZENG
News Editor
MADELEINE PARAGAS
Staff Writer

While many agree that higher education, such as a college degree, may lead to a higher income, there is less discussion regarding differences in income levels between graduates from different social backgrounds. According to the Brookings Institution, a recent study revealed that 25-year-old college graduates who came from families with incomes 185 percent higher than the federal poverty level (FPL) make about $20,000 more than their peers who came from families with incomes 185 percent lower than the FPL.

Conducted by economists at the W.E. Upjohn Institute for Employment Research, the study included a survey and observations of people with different levels of education. The study revealed that, between college graduates with different backgrounds but same degrees, the earning gap widened as the college graduates grew older; 61-year-old college graduates from higher-income families earned about $55,000 more than those from low-income backgrounds.

There are various possible explanations as to why financial background may affect income level. According to the Brookings Insitute, factors such as mentors and advisors, social and professional networks and differences in self promotion, may affect college graduates’ life earnings.

According to U.S. News, if college students want to get a job once they finish their diploma, they should already have connections with people in the industry. The article also encourages college students to network with friends’ parents and college alumni, which may be a good solutions for students who are struggling to find social and professional networks.

However. according to Chicago Tribune, graduates from low-income families will increase their lifelong earnings by 91 percent compared to those who stopped their education after finishing high school.

“To remedy [the earning gap] problem, applicants for a job should take a specific exam; from these results, employers should pay more to those who scored higher and [employees who] prove their competence,” senior Aleida Yu said.

Although studies may show that graduates from low-income families may earn less than graduates from higher-income families, this is not true in all cases. There are many celebrities and billionaires who earned a college degree and are now worth millions, people like talk show host Oprah Winfrey, Starbucks CEO Howard Schultz, and Excel Communications founder Kenny Troutt.

“College graduates from low-income backgrounds can definitely make as much as college graduates from high-income backgrounds; they just might have to work harder,” sophomore Citlali Garcia said.