THE VANISHING WORTH OF DEGREES

A recent Harvard study has found that 10 college degrees—including once-prestigious ones such as business administration, computer science, and economics—are rapidly losing their value in the job market.

- JOHN J KENNEDY

The finding only confirms what students and employers worldwide have sensed for some time: the college degree is no longer the reliable passport to prosperity.

For decades, it was indeed the surest ticket to social mobility. Everyone staunchly believed that it promised stability, respectability, and offered a dependable route to success. To hold a degree was like holding the future in one’s hands. However, today, that promise is wearing out—both globally and in India. Due to artificial intelligence and the rapid pace of technological change bringing in automation, the relationship between education and opportunity is being redefined.

Two economists from Harvard, David J Deming and Kadeem Noray, warned us of this in as early as 2020. Their research showed that graduates, especially in technology-intensive fields such as computer science and engineering, could reap high early-career returns. However, these returns may fade sharply over time as their skills become less relevant. In effect, the ‘earnings premium’ that once made such degrees so desirable gradually begins to shrink within a decade of graduation. Thus what was once an appreciating asset becomes a depreciating one. Without continuous upskilling, the degree itself starts to lose value over time, often from the very day it is earned.