The Puzzle of Low Graduation Rates

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This chapter discusses the puzzle of why there hasn't been a significant increase in college graduation rates despite the enormous increase in the return to graduating. It explores the trends in enrollment and graduation over the last few decades and suggests that challenges in passing classes and staying motivated may be factors contributing to low graduation rates.

Bryan Caplan of George Mason University and blogger at EconLog talks to EconTalk host Russ Roberts about the value of a college education. Caplan argues that the extra amount that college graduates earn relative to high school graduates is misleading as a guide for attending college--it ignores the fact that a sizable number of students don't graduate and never earn that extra money. Caplan argues that the monetary benefits of a college education have a large signaling component rather than representing the value of the knowledge that's learned. Caplan closes by arguing that the subsidies to education should be reduced rather than increased.