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Historically Black Colleges give graduates a wage boost

LOUISIANA WEEKLY — Increased wages were strongest for the elite HBCUs: Hampton, Howard, Morehouse, Spelman and Xavier. But the effect persisted 10 years after graduation for graduates of all 59 HBCUs – more than half of the 100 or so HBCUs in the nation – that were included in the sample. Other HBCUs were not included because of lack of data.

Published

7 years ago

September 19, 2019

Oakland Post

Photo by: monkeybusiness

By Gregory N. Price

(Special from theconversation.com) — In 2010, two economists claimed that graduates of Historically Black Colleges and Universities, or HBCUs, suffer a “wage penalty” – that is, they earn relatively less than they would had they gone to a non-HBCU.

In an early draft of the paper, the economists – one from Harvard and the other from MIT – argued that while HBCUs may have served a useful purpose back in the 1970s, they were now, by some measures, serving to “retard black progress.” The reason why, they suggested, is that traditionally white institutions may have gotten better at educating Black students and that there might be value in “cross-racial connections” when it came time to get a job.

The paper, which relied on data from the 1950s through the early 2000s, generated negative headlines for HBCUs. For instance, The Wall Street Journal called HBCUs “academically inferior.” The New York Times warned readers about the “declining payoff from black colleges.”

As a scholar who has researched HBCUs, my colleagues and I have found contrary evidence: Students who went to HBCUs do not suffer a relative wage penalty. In fact, we found that they typically and on average earn more than similar students who went to non-HBCUs. Our findings are based on comparing HBCUs to other schools with a sizable Black student population.

Producers of black doctors, engineers

Largely established to serve Black people after the Civil War and in the Jim Crow era of racial segregation, HBCUs were the only higher education option for many Black Americans up through the mid-1960s during the push for integration. Since then, HBCUs have served a declining share of Black students. For instance, HBCUs served 17.3 percent of Black college students in 1980, but by 2015 the figure had fallen to 8.5 percent.

HBCUs have been in a constant struggle for their financial survival because of declining enrollment, among other things. In fact, some college finance experts predict that many HBCUs will disappear in the next 20 years.

HBCUs currently serve about 298,000 students and rank among the highest producers of black doctors. HBCUs also play an outsized role in the production of Black graduates in science, technology, engineering and mathematics, or STEM.

A wage premium

Our study included 1,364 nonprofit colleges and universities, both public and private, that award at least a baccalaureate degree.

Increased wages were strongest for the elite HBCUs: Hampton, Howard, Morehouse, Spelman and Xavier. But the effect persisted 10 years after graduation for graduates of all 59 HBCUs – more than half of the 100 or so HBCUs in the nation – that were included in the sample. Other HBCUs were not included because of lack of data.

And it wasn’t a small amount of money, either. In our study, we found that HBCU students from the elite universities earn 32 percent more six years after attendance than students with similar characteristics who attended other colleges and universities.

But before anyone celebrates our findings as a clear victory for HBCUs, a few caveats are in order.

Penalties exist

First, all HBCU graduates don’t earn more than all non-HBCU graduates all the time. In fact, much like Freyer and Greenstone did a decade ago, we found that early in their careers – extending to six years after graduation – typical HBCU graduates do in fact suffer a wage penalty.

The HBCU study in 2010 found grads earned 20 percent less than peers from other colleges in the 1990s, although it’s not known how long after graduation this occurred.

We found that there’s an 11 percent wage penalty after six years but then it disappears after 10 years, and in fact turns into an advantage. So while typical HBCU graduates may be earning less money than non-HBCU graduates in their late 20s, by their early 30s, they are earning more.

We also found that the wage advantage for HBCUs remained no matter what the major. In my view as an economist, the relative gains for HBCU attendees after six years suggest, that on average, HBCU graduates are better able to find jobs that match their skill and capabilities.

Demographic factors

Just what is it that makes HBCUs more effective as escalators for labor market earnings and income mobility? Earlier research my colleagues and I conducted at Howard University found that a high proportion of Black students in a college or university serves as a boost to Black identity and self-esteem. That boost, we found, translates into labor market skill acquisition that results in an earnings advantage.

Given the history of HBCUs receiving unequal resources, our results suggest that government and philanthropy could consider more funding for HBCUs. That could enable them to be even more successful at what they do, particularly when it comes to enabling students from households that earn the least money to move up economically.

Gregory Pine is Professor, Economics, University of New Orleans.

This article originally published in the September 16, 2019 print edition of The Louisiana Weekly newspaper.

This article originally appeared in The Louisiana Weekly.

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Here is what you need to know about finding unique white elephant gift ideas that everyone wants to steal

The best white elephant gift ideas are funny enough to get a reaction but useful enough that people actually want to steal them. Look for gifts with a surprise factor, broad appeal, an inside joke, and just enough personality to spark some friendly competition. The wrapping paper comes off, the room goes quiet for half […]

Published

1 month ago

October 4, 2026

Oakland Post

The best white elephant gift ideas are funny enough to get a reaction but useful enough that people actually want to steal them. Look for gifts with a surprise factor, broad appeal, an inside joke, and just enough personality to spark some friendly competition.

The wrapping paper comes off, the room goes quiet for half a second, and suddenly everyone wants the same gift. That is the sweet spot. A great white elephant pick should make people laugh, lean in, and start plotting their next steal before the turn is even over.

Should a White Elephant Gift Be Funny or Useful?

A white elephant gift can be funny or useful, but the strongest choices usually give people a reason to laugh and a reason to keep the item. A practical gift with an odd design, unexpected feature, or playful theme can get a reaction without becoming something the recipient immediately wants to give away.

The right balance depends on the group. Close friends and family members may enjoy a ridiculous gag gift because they already understand one another’s sense of humor.

A workplace exchange, neighborhood party, or mixed-age gathering usually calls for something with broader appeal. In those settings, humor works better when it is built into an item people could still use afterward.

It also helps to think about how quickly the gift will make sense once it is opened. A strangely shaped kitchen tool, oversized mug, quirky desk accessory, or unexpectedly fancy everyday item can create an immediate reaction. Guests understand the joke right away, while the item still has enough practical value to attract a steal.

Pure gag gifts can be harder to pull off. Something that exists only for the punchline may get a big laugh during the reveal and then sit untouched for the rest of the game. If the goal is to bring one of the gifts everyone keeps fighting over, usefulness gives the joke staying power.

Memorable Present Ideas: Creating Inside Joke Gifts

Inside joke gifts can make a white elephant exchange feel much more personal, especially when most of the group shares the same stories. The trick is choosing a reference that people will recognize quickly instead of building the entire joke around something only two guests understand.

You can turn a memorable vacation mishap, office catchphrase, family story, or long-running group joke into the theme of the gift. A personalized comic book can work especially well when it turns familiar people or a ridiculous shared moment into part of the story.

Think carefully about who the joke involves before ordering anything permanent. The gift should make the person feel included in the fun, not singled out for the wrong reason.

Can You Bring Something You Already Own?

Holiday gift exchanges can be a good place to re-gift something you never used, especially if it is unopened and clean.

The following can all work if they still look presentable:

A duplicate kitchen gadget
An untouched game
A decorative item
A sealed gift set
An unopened candle
A new travel accessory

The goal is to give the item a second chance, not use the exchange as an excuse to clear out damaged or unwanted clutter.

Take a close look at the packaging before wrapping it. Faded boxes, missing pieces, visible wear, or anything that looks obviously used can make the gift feel careless.

Wrapping Budget-Friendly Gifts

Wrapping can make gifts more entertaining before anyone even knows what’s inside.

Misdirection works especially well for fun party games. Put a small gift inside a much larger box. Use packaging from an unrelated household item.

Add harmless weight so guests cannot guess what they are holding. The reveal becomes part of the joke without changing the gift itself.

You can also lean into the theme of the exchange. Bright paper, oversized bows, reusable bags, or deliberately over-the-top wrapping can make an ordinary item feel more memorable. If the gift itself is already funny, simple wrapping may work better so the surprise stays hidden until the last second.

Frequently Asked Questions

Is Picking Last an Advantage in White Elephant?

Picking last can be an advantage because you get to see almost every gift before making your move. Instead of choosing blindly from the remaining wrapped presents, you can steal something that has already caught your attention if the rules still allow it.

That advantage depends on the house rules. Some games limit how many times a gift can be stolen.

Others lock an item once it reaches a certain number of steals. If the most popular gifts are already unavailable, the final player may have fewer strong options than expected.

The first player can also get another turn at the end in some versions of the game. That rule can balance things out, since the person who started with the least information may get one final chance to steal.

How Do You Plan White Elephant for a Large Group?

For a large white elephant exchange, set a firm spending limit and establish the stealing rules in advance.

Create a clear turn order before the game begins. Drawing numbers as guests arrive can save time once everyone is ready to start.

Keep the number of steals per gift limited so the game does not drag on. It also helps to have one person track which creative holiday presents have been stolen and when they are locked, especially if dozens of people are participating.

Can You Play White Elephant Virtually?

A virtual white elephant exchange can work over a video call, with one person keeping track of the turn order and each steal. Guests can either mail physical gifts ahead of time or use digital gifts that can be delivered once the game ends.

Set the spending limit and stealing rules before everyone joins. It also helps to decide how gifts will be revealed and who is responsible for sending each one afterward so the exchange does not become confusing.