Alan Krueger, chairman of the White House Council of Economic Advisers, said boosting the number of Americans who go on to higher education would be the most effective way to raise wages for workers.
The slowing progress in educational attainment has been the biggest contributor to stagnating incomes, Krueger said today in an interview with Kathleen Hays on Bloomberg Radio’s “The Hays Advantage.”
“The most important factor is that we stopped investing as much as we had been in higher education,” said Krueger, a labor economist on leave from Princeton University.
The U.S. had “the highest educated 60-year-olds in the world” while “30-year-olds are in the middle of the pack,” Krueger said.
U.S. median household income in 2010 fell to its lowest level since 1996, slipping to $49,445 from $50,599 the year before, the Census Bureau reported.