jerseyshorejohnny
Well-known member
College Majors Figure Big in Earnings
Study finds some study areas pay more than others, with engineering earnings triple those for education
A new report from Georgetown’s Center on Education and the Workforce breaks down the wages of college graduates by major. What lessons does the data offer prospective college students?
By MELISSA KORN Wall Street Journal
Updated May 7, 2015 11:41 a.m. ET
Want to make a good living? Go to college. Just be careful what you major in.
On average, college graduates earn about $1 million more in their lifetimes than do adults who only completed high school. But long-term earnings prospects vary widely by subject, and the income differentials across certain majors dwarf those between graduates and non-graduates, according to a new report from Georgetown University’s Center on Education and the Workforce based on an analysis of Census Bureau data.
For example, students who complete undergraduate degrees in petroleum engineering earn a median $4.8 million throughout their careers (or $136,000 a year)—more than triple the $1.4 million in median earnings (or $39,000 a year) for someone who majored in early-childhood education, the report says.
The findings, which include detailed analyses of earnings for graduates in 137 specific majors, add fuel to an already heated debate over the value of a college education amid skyrocketing student-loan debt and a still-tepid job market for fresh graduates.
Think tanks, states and the federal government have scrambled to fill the information void with a variety of tools to help families try to measure the return on their college investments. The Brookings Institution last week ranked schools based on their “value-added,” or the difference between mid-career salaries of alumni and estimated salaries of comparable students from other schools. The California Institute of Technology topped the list of four-year schools with the most value added in terms of mid-career earnings.
Georgetown published a report in February looking at the wage premiums for recent college graduates compared with high-school graduates, along with the unemployment rates for various majors. Graduates of architecture programs may have higher salaries than teachers, as the latest paper shows, but the February report noted that they’re also likely to see unemployment rates twice those of education majors.
The latest Georgetown report shows that sweeping statements about college graduates’ earnings—whether based on first-year outcomes for an entire school or even averages within fields of study—say little about prospects for individual graduates.
Financial Advice for New College Grads
“The surprises are in the details,” said Anthony Carnevale, director of the Georgetown center. For example, just choosing a major in science, technology, engineering or mathematics, known as the STEM fields, doesn’t secure a hefty paycheck. Mr. Carnevale’s team found that biology majors have median annual wages of $56,000 over their careers from age 25 to 59, or about one-third less than physicists.
Yet once biologists finish graduate programs—and more than half of them do—their median annual earnings jump to $96,000, roughly on par with physicists who have advanced degrees.
There are also wide ranges in salaries for specific majors. The top 25% of earners who majored in finance can expect annual earnings of more than $100,000, while the bottom quartile may bring in just about $50,000 a year.
College graduation is a good thing, but how it pays off in lifetime earnings depends to a large degree on a student’s major subject, a Georgetown University study finds.
College graduation is a good thing, but how it pays off in lifetime earnings depends to a large degree on a student’s major subject, a Georgetown University study finds.
“When people see a median, they think it’s destiny,” Mr. Carnevale said. “It’s not. There are people above and people below.”
Similarly, the Brookings Institution’s Hamilton Project found last fall that lifetime earnings for economics majors at the 90th percentile are nearly triple those at the 10th, reflecting the range of destinations for such experts in government and the private sector.
Some states are trying to encourage students to pursue certain degree programs and steer clear of ones that may lead to lower-paying jobs or higher unemployment rates.
North Carolina Gov. Pat McCrory has stated that he would like to allocate higher education funding based on job prospects for certain programs, and proposed in next year’s budget to upgrade STEM-department technology at state universities to help attract more students.
Florida currently weighs graduate outcomes in determining school spending under its performance-based funding model. “I love all degrees,” Gov. Rick Scott said in an interview with The Journal Wednesday. “But I like the degrees where kids get jobs.”
Melissa Kearney, an economics professor at the University of Maryland and director of the Hamilton Project, said salaries should factor into, but not necessarily dominate, decisions on majors.
‘Yes, engineering pays very well. But that’s not going to serve someone who really struggles with quantitative skills.’
—Melissa Kearney, director, Brookings Institution’s Hamilton Project
“People have to think very carefully about what they’re good at,” she said. “Yes, engineering pays very well. But that’s not going to serve someone who really struggles with quantitative skills.”
Low earnings prospects are a concern for Anne Davis, a junior studying sociology and environmental policy at the College of William & Mary in Williamsburg, Va. But she is still pursuing a career in grassroots organizing for environmental groups.
Ms. Davis, 21 years old, hopes to land a full-time job working as a community organizer at an environmental nonprofit, where she expects to earn $35,000 to $40,000.
“I’ve found my calling,” she said. “I know the money’s not lucrative, but I couldn’t see myself doing anything else.”
Study finds some study areas pay more than others, with engineering earnings triple those for education
A new report from Georgetown’s Center on Education and the Workforce breaks down the wages of college graduates by major. What lessons does the data offer prospective college students?
By MELISSA KORN Wall Street Journal
Updated May 7, 2015 11:41 a.m. ET
Want to make a good living? Go to college. Just be careful what you major in.
On average, college graduates earn about $1 million more in their lifetimes than do adults who only completed high school. But long-term earnings prospects vary widely by subject, and the income differentials across certain majors dwarf those between graduates and non-graduates, according to a new report from Georgetown University’s Center on Education and the Workforce based on an analysis of Census Bureau data.
For example, students who complete undergraduate degrees in petroleum engineering earn a median $4.8 million throughout their careers (or $136,000 a year)—more than triple the $1.4 million in median earnings (or $39,000 a year) for someone who majored in early-childhood education, the report says.
The findings, which include detailed analyses of earnings for graduates in 137 specific majors, add fuel to an already heated debate over the value of a college education amid skyrocketing student-loan debt and a still-tepid job market for fresh graduates.
Think tanks, states and the federal government have scrambled to fill the information void with a variety of tools to help families try to measure the return on their college investments. The Brookings Institution last week ranked schools based on their “value-added,” or the difference between mid-career salaries of alumni and estimated salaries of comparable students from other schools. The California Institute of Technology topped the list of four-year schools with the most value added in terms of mid-career earnings.
Georgetown published a report in February looking at the wage premiums for recent college graduates compared with high-school graduates, along with the unemployment rates for various majors. Graduates of architecture programs may have higher salaries than teachers, as the latest paper shows, but the February report noted that they’re also likely to see unemployment rates twice those of education majors.
The latest Georgetown report shows that sweeping statements about college graduates’ earnings—whether based on first-year outcomes for an entire school or even averages within fields of study—say little about prospects for individual graduates.
Financial Advice for New College Grads
“The surprises are in the details,” said Anthony Carnevale, director of the Georgetown center. For example, just choosing a major in science, technology, engineering or mathematics, known as the STEM fields, doesn’t secure a hefty paycheck. Mr. Carnevale’s team found that biology majors have median annual wages of $56,000 over their careers from age 25 to 59, or about one-third less than physicists.
Yet once biologists finish graduate programs—and more than half of them do—their median annual earnings jump to $96,000, roughly on par with physicists who have advanced degrees.
There are also wide ranges in salaries for specific majors. The top 25% of earners who majored in finance can expect annual earnings of more than $100,000, while the bottom quartile may bring in just about $50,000 a year.
College graduation is a good thing, but how it pays off in lifetime earnings depends to a large degree on a student’s major subject, a Georgetown University study finds.
College graduation is a good thing, but how it pays off in lifetime earnings depends to a large degree on a student’s major subject, a Georgetown University study finds.
“When people see a median, they think it’s destiny,” Mr. Carnevale said. “It’s not. There are people above and people below.”
Similarly, the Brookings Institution’s Hamilton Project found last fall that lifetime earnings for economics majors at the 90th percentile are nearly triple those at the 10th, reflecting the range of destinations for such experts in government and the private sector.
Some states are trying to encourage students to pursue certain degree programs and steer clear of ones that may lead to lower-paying jobs or higher unemployment rates.
North Carolina Gov. Pat McCrory has stated that he would like to allocate higher education funding based on job prospects for certain programs, and proposed in next year’s budget to upgrade STEM-department technology at state universities to help attract more students.
Florida currently weighs graduate outcomes in determining school spending under its performance-based funding model. “I love all degrees,” Gov. Rick Scott said in an interview with The Journal Wednesday. “But I like the degrees where kids get jobs.”
Melissa Kearney, an economics professor at the University of Maryland and director of the Hamilton Project, said salaries should factor into, but not necessarily dominate, decisions on majors.
‘Yes, engineering pays very well. But that’s not going to serve someone who really struggles with quantitative skills.’
—Melissa Kearney, director, Brookings Institution’s Hamilton Project
“People have to think very carefully about what they’re good at,” she said. “Yes, engineering pays very well. But that’s not going to serve someone who really struggles with quantitative skills.”
Low earnings prospects are a concern for Anne Davis, a junior studying sociology and environmental policy at the College of William & Mary in Williamsburg, Va. But she is still pursuing a career in grassroots organizing for environmental groups.
Ms. Davis, 21 years old, hopes to land a full-time job working as a community organizer at an environmental nonprofit, where she expects to earn $35,000 to $40,000.
“I’ve found my calling,” she said. “I know the money’s not lucrative, but I couldn’t see myself doing anything else.”