Earning a college degree raises earnings for blacks and Latinos, but it also may add to debts. “Higher education alone cannot level the playing field,” the report concluded. “College degrees alone do not provide short-term wealth protection, nor do they guarantee long-term wealth accumulation.”
“Better-educated African American and Latinos were more likely to own homes, and those homes tended to be their primary source of wealth, so when the housing market collapsed, their residences transformed from piggy banks into anchors,” writes Joseph Williams on TakePart.
Minority and low-income students “don’t attend the best possible colleges they could (based on grades, etc.),” which lowers earnings, S. Michael Gaddis, a Penn State sociology professor, told TakePart.
Black and Latino graduates earn significantly less than whites and Asian-Americans.
In a study Gaddis conducted in March, job applications with “white” names resulted in more job offers for higher pay than those with “black” names. Fictional jobseekers who claimed to be graduates of elite colleges did better than those from less-elite colleges, but race mattered. “Education apparently has its limits because even a Harvard degree cannot make DaQuan as enticing as Charlie to employers,” Gaddis wrote.