The decline of the Degree's Value
The total cost incurred in acquiring a degree is analyzed, and evaluation is done on whether the cost of obtaining a degree is worth the financial problems underwent in the course of studies. Demand and Supply for Labor Demand for Labor Demand for labor is defined as the ability and willingness of producers to hire laborers at a given wage rate in a given market at a particular time (Ehrenberg, Ronald, and Robert, p74). The knowledge and desire must be present to make the definition of demand complete. For instance, a producer with cash to hire works but is not in need of them does not demand labor. Another producer with high production capacity and is willing to engage more workers but is having insufficient funds to pay workers does not demand labor.
If the amount of substitutes to labor is high producers would replace these factors of production with labor thereby increasing demand for labor. Technology Adopted in Production If a producer employs a labor-intensive method of production in its activities, then more works are needed hence making a demand for labor to increase. On the other hand, if a producer employees capital-intensive methods of production then few workers would be required in production thereby decreasing demand for work. Marginal Productivity of Labor The marginal productivity of labor refers to the addition made to the total product as a result of adding extra labor in production (Atkinson, John, and David, p89). When the number of laborers has reached an optimal point, any further addition of additional workers will result in a decrease in the total product hence making the demand for labor to decrease.
Level of Economic performance If the economic performance of a country is high, this implies high production (Stiglitz, Joseph, and Jay, P62) which translates to high demand for labor to be used in the production exercise. If the performance of an economy is weak, this brings to low output and hence the low demand for labor. Population Size The population is the total number of people living in an area, region or country. Labor supply is higher when the population size is high (Stiglitz, Joseph, and Jay, P59) and lower at a low population size. Since many people have limited skills needed for the job, the supply of unskilled labor is high compared to the supply of highly skilled labor. For instance, when the education level of people in a country is high then provide for skilled labor is high to meet the demands of a producer.
Supply of labor is also high at a higher wage rate. Considering this is important to study the advantages and disadvantages of degree. Advantages of College Degree The degree is significant because it encourages the mobility of labor. A person who has acquired a college degree can supply his labor services from one geographical area to another, from one industry to another and can quickly move to a new profession to another. College degree gives the owner a better opportunity to take advantage of these benefits. College degree also enables a person to build stronger networks. These networks are critical as they encourage the exchange of ideas among people within the network. Systems are also essential because they increase the chances of securing a job.
People are aware of opportunities that are close to them and can easily connect another person who has qualifications for this opportunity. College degree equips the owner to be in a position to handle and manage diversity. It is in college that people get to learn and understand different personalities. When peoples' personalities are understood, it is possible to avoid conflicts and personal differences. It also makes a person understand the other person's point of view, and this makes it possible resolve conflicts. Reasons Why Fewer People Study a Degree It is expensive. This makes a person not to enjoy his income since a significant portion of his salaries will be used in compensating debts which limit an individual’s opportunity to grow and to become financially independent.
Currently, there is an increasing number of well rewarding jobs that do not require college degree hence it is a waste of time and other resources that have little benefits. For instance, the increasing number of online jobs does not need one to have a degree certificate, and increasing number of people opt for them. Many people currently have a college degree, and increasing number of students is enrolling to pursue a degree course. This makes the job market to be flooded. This will encourage people including the poor to consider furthering their studies. Adoption of appropriate techniques of production, for instance, labor-intensive techniques as opposed to capital-intensive methods of production. Labor intensive techniques of production will create more demand for laborers hence absorbing the ever increasing number of college graduates who may turn to be jobless.
Reserving certain positions for degree graduates with attractive rewards to lure more people get encouraged with excellent perks. This can be made possible when the federal government and states set such a regulation to be adhered to by all employers. Lecturers should also be well equipped with knowledge on the subjects they are teaching. It is possible for lecturers to be preparing for the sake of it with low content on the issue they are explaining hence they should be thoroughly evaluated before they are provided with a chance to teach. Colleges should also provide them with relevant materials that they are supposed to use while in class. Extensive and intensive research should also be conducted to identify better ways of improving the value of college degree.
This research should be done both within and outside the college premises. The opportunity cost of forgoing work can be obtained from the current market wage rate for high school graduates. The sum of direct costs and indirect costs give the total cost incurred to pursue a degree course to its completion. Is the Value of a Degree Worth the Financial Hardship? The total cost incurred in obtaining a degree certificate is high and is increasing year in year out. The demand for labor services of college graduates is also decreasing due to the factors already discussed above. This makes the value of college degree to decline. Dadgar, Mina, and Madeline Joy Trimble. "Labor market returns to sub-baccalaureate credentials: How much does a community college degree or certificate pay?.
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