Yahoo! Finance’s Tech ticker interviews Boston University economics professor Laurence Kotlikoff, who says a posh education isn’t worth the huge expense if you look at it solely through the lens of lifetime earnings.
Professor Kotlikoff makes his case by comparing the livelihoods of plumbers and doctors. Yes, doctors have a bigger salary. But, doctors have to endure nearly a decade of expensive education before making any real salary, after which the doctor is hit by a very high progressive tax rate. Because of all the costs the doctor incurs, the taxes and the lost wages, he says, “plumbers make more, and have almost the same spending power over their lifetime as general practitioners.
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