While the CEA report is rightly concerned with the widening earnings gap between people with college degrees and those with high school diplomas, the report seems to have missed the yawning income difference between workers with advanced degrees and the rest of the labor force. Based on the latest report on income from the Census Bureau, average annual earnings in 1992 for full-time male workers with advanced degrees--a master's degree, doctorate, or professional degree--was some $64,000. That's $18,000 more than the average holder of only a college degree.

What's more, workers with advanced degrees have a near-majority of the highest-paying jobs. While only about 9% of the work force has advanced degrees, they hold 44% of the jobs that pay over $75,000. That may explain why applications to graduate schools continue to stay strong.

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