Friday, August 10, 2012

The College Wage Premium--The Right College Degree Is Everything

The debate on whether going to college is worth it has become a political and social issue in America.  Stats are bantered around left and right, yet this work by The Cleveland Fed is the best I have seen yet. 

Electrical engineering, computer science, and nursing provide the best pay for the dollars you spend going to college.  In the business management world, accounting; economics; and finance lead the way over general business administration and marketing.

The decision to go to college has a profound effect on wages; however, we have seen that both college major and the pursuit of an advanced degree have a critical impact on the value one receives from a college education as well. Other factors affecting the return to college not discussed here include college quality, occupational choices, hours worked, and the relevance of unobserved skills.

Full Cleveland Fed report here

Innovation Disrupts Regression to the Mean

In most of life, with the exception of tax cuts, people hate change.  Regression to the mean is not only a statistical concept, it is a behavioral reality and a threat to innovation. 

As a manager, change management is such a challenge because people hate risk.  Organizations and people in them say they want to make more profits or more money, yet are not willing to make the changes, and take the risks necessary to disrupt the status quo
, make something new, and reap the profits for stepping out of the status quo.

Here are some innovative ideas taking place because someone has resisted the forces of regression to the mean to become an outlier, disrupt the status quo, and reap the rewards of having great ideas.

  • Diabetes May Be Reversed by Long-Used Vaccine for TB (Bloomberg) 
  • Innovation The Optimistic Science (Innovate on Purpose)
  • Improved Immigration Laws Would Help Foreign Student Entrepreneurs Launch U.S. Companies, Create U.S. Jobs (Kauffman)