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THE MASTERS DEGREE IS THE NEW BACHELOR'S DEGREE

1/13/2018

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What's the true value of a master's degree?
Mark Schneider and Jorge Klor de Alva | AEI

The master's as the new bachelor's degree: In search of the labor market payoff

Mark Schneider and Jorge Klor de Alva

Read Online Printable Copy    

KEY POINTS
  • American universities awarded roughly 760,000 master's degrees during the 2014–15 academic year, yet we know little about the payoff associated with these degrees, especially by field of study.

  • Using new data from three states, we show that field of study is closely related to postgraduation earnings from master's degrees. Master's graduates in fields such as philosophy, art, and early childhood education have the lowest median earnings—often less than graduates with bachelor's or even associate degrees.

  • The highest-paid graduates earned master's degrees in fields such as business, information technology, engineering, or real estate. Differences in state labor markets also led to variance in postgraduate earnings, more so for high-paying fields than low-paying fields.

  • As the number of master's degree candidates and graduates grows, federal and state governments have an obligation to collect and disseminate program-level data on earnings—prospective master's students, indeed all students, should know before they go.
Read this publication online.

View a printable copy.

Banter #295: Mark Schneider on postsecondary earnings outcomesSpencer Moore, Cecilia Gallogly, and Mark Schneider | Banter Podcast | December 14, 2017

Degrees of opportunity: Lessons learned from state-level data on postsecondary earnings outcomesMark Schneider and Rooney Columbus | American Enterprise Institute | October 20, 2017

Skills-oriented apprenticeship can trump bachelor's or bustMark Schneider | The Orlando Sentinel | June 21, 2017
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