In the aftermath of the Great Recession, the job market remains tight — particularly for young adults. This has led to some debate about the value of higher education in today’s economy — is a college degree worth the cost? The Hamilton Project compares the value of investing in a college degree to stocks, bonds, gold, treasury bills, and housing, and finds that the rate of return to a college degree (either two-year or four-year) far exceeds the returns to other investments. In fact, the $102,000 investment in a four-year college yields a rate of return of 15.2 percent per year — more than double the average return over the last 60 years experienced in the stock market (6.8 percent), and more than five times the return to investments in corporate bonds (2.9 percent), gold (2.3 percent), long-term government bonds (2.2 percent), or housing (0.4 percent).
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