Research suggests declining return on investment from master's degrees
While Americans typically view a master's degree as an opportunity to advance career earnings, some recent findings suggest otherwise.
The Economist has shared data that indicates a postgraduate degree may not be as valuable as typically believed to be.
While Americans typically view a master’s degree as an opportunity to advance career earnings, some recent findings suggests otherwise.
The Economist has shared data that indicates a postgraduate degree may not be as valuable as typically believed to be.
The outlet points to one report that says 40 percent of American master’s courses offer graduate “no financial return or leave them worse off.” This finding takes takes into account the cost of postgraduate education and what students would have earned with just a bachelor’s degree instead.
The Economist also points out that a British survey finds that master’s degrees typically provide almost no extra impact on earnings by the time graduates reach the age of 35.
The idea that college degrees are increasingly less valuable has become more commonplace among Americans in recent years, especially concerning undergraduate education.
The Harris Poll recently released data on behalf of Credit Karma showing that younger generations of Americans are increasingly seeking blue-collar jobs as alternatives to a traditional four-year college education.
“Lately, there’s been a lot of warranted attention placed on the exorbitant cost associated with getting a four-year college degree, and healthy debate as to whether the return on investment is worth the expense,” Consumer Financial Advocate Courtney Alex of Credit Karma said in a press release. “The traditional four-year college path isn’t one-size-fits-all, and vocational and trade schools may offer an affordable path to well-paying, skilled trade jobs.”
In March, the Gates Foundation-funded HCM Strategists and Edge Research shared findings that show how young people hold a diminishing outlook concerning the prospects of a college degree.
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”Despite our understanding of the value of higher education, perceptions among these high school students and non-enrolled audiences make it clear that institutions need to prove their value to them,” the researchers concluded.
”In particular, why does the value of a 2-year or 4-year degree outweigh the value of credentials and job training programs?” they continued. “Both High Schoolers and Non-Enrollees see and select other paths that are shorter, cheaper, and/or more directly linked to specific job opportunities.”