Wages are stagnant for low wage earners but wages are growing for higher wage earners. The difference between low wages and higher wages is often higher education.
We typically hear that wages are stagnant. In real terms they are. The next chart is the same as the above but in inflation-adjusted terms. In real terms wages are almost impossible to dramatically increase. This is because wages and inflation are extremely correlated. If everyone makes twice as much; everything will cost twice as much.
Higher Education is a great investment. This is because it doesn't just enable a person to earn more; it enables their lifetime earnings to grow at a faster rate.
This chart shows how much more College Graduates Earn than High School Graduates. It also shows the difference in unemployment between those with higher education. Without education recessions hurt a lot more. Unemployment is a constant threat. If they can find a job it is for significantly less than someone with a Higher Education. This chart is the reason people are willing to go into significant debt for college. It is also the reason refinancing student debt is low-risk. The educated make more and have lower levels of unemployment.
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