Other Factors

The COVID-19 pandemic had a significant impact on post-graduation outcomes for college graduates in 2020. Job opportunities were scarce, especially for those in liberal arts, hospitality, retail, and some STEM fields. These graduates may continue to face financial challenges due to debt and lower earnings. Students from lower socioeconomic backgrounds have less access to selective institutions, face difficulties in completing degrees, and have lower early career earnings compared to those from higher-income families. There are also persistent employment and earnings gaps based on race and ethnicity, with black and Hispanic graduates earning less than their white and Asian peers. Women still experience a gender wage gap even after obtaining the same education and grades as men, and this gap continues to widen over time. There are a few other factors to look at when considering post-graduation outcomes. A big impact was COVID-19. College graduates in 2020 faced one of the worst job markets in recent history due to the economic impacts. Jobs were especially limited for liberal arts, hospitality, retail, and even some STEM graduates early in the pandemic. Debt burdens and lower earnings may still have lasting impacts on wealth accumulation for these graduates today. Socioeconomic status, students from lower socioeconomic backgrounds are less likely to gain admission to selective institutions, complete degrees, and attend graduate school. They have lower early career earnings compared to graduates with higher family incomes. Diversity, again, research shows persisting gaps in employment rates and earnings based on race and ethnicity. For example, black and Hispanic graduates tend to gain lower early career earnings compared to white and Asian peers. Underrepresented minority graduates face barriers in fields like STEM, as we talked about before. And for gender, women still face a gender wage gap compared to men, even after graduating with the same majors, jobs, and grades. And this gender wage gap still continues to grow over time.