There's an old joke that if you're being chased by a bear and you want to avoid being eaten, you actually don't have to run faster than the bear. You just have to run faster than the other guy. As it turns out, that joke may be critical to understanding the role college education plays in the modern economy. For a few decades now, economists' ideas about education have been dominated by the "human capital" theory — that more education gives people more skills, which makes them more productive, which means they earn higher wages.
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The Week - Business, The Week: Business
Thu, 09/03/2015 - 2:23am
Topics: john cassidy the new yorker economic policy institute epi new york fed graph washington center equitable growth wages larry mishel epi the week so cassidy as cassidy cassidy the in mishel college degree education skills people graduates degrees story inequality higher demand work four-year incomes premium portion graduate economy technological high percent school bottom productive growing employers change bear means grads middle college-educated pointed top evidence collapse arguably americans students brought stagnating modern run fill guy supply earn grew minimum declined continued joke happened falling unions true flatlined rising money stagnate job pay words
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