Several factors contribute to education inflation:
* Rising tuition costs: Tuition fees at colleges and universities have been increasing at a faster rate than inflation for many years.
* Increased competition: A larger pool of educated individuals competing for a limited number of jobs can drive down wages and reduce the perceived value of a degree.
* Credentialism: Employers increasingly require higher levels of education for positions that previously required less, driving up the demand for advanced degrees but not always the commensurate increase in pay.
* Technological advancements: Automation and other technological advancements can displace workers who hold degrees in certain fields, reducing the job market opportunities for those graduates.
* Debt burden: The increasing reliance on student loans to finance education leaves graduates with significant debt, impacting their post-graduation financial situation and reducing the net benefit of their education.
Essentially, education inflation means that individuals are spending more to achieve the same (or sometimes less) relative improvement in their job prospects and earning power.