Every September, students go back into the schools or universities, while some grads contemplate higher education. But, what’s the right degree for you? How much money would you make (or lose) by heading back to the classroom? To answer these questions, let's analyse a database of more than 6 million job seekers.
Let’s start by looking into the most basic question: Was your college degree worth it?
Immediately following graduation, it turns out the answer is “no,” since there is little differentiation between individuals with college degrees, and those without one.
That is partly because following graduation
the same people in general are young and
jobless.
That is partly because following graduation
the same people in general are young and
jobless.
That said, let’s not judge quickly. Most newly graduates take low-paying, entry-level positions after university and work their way up, so while the immediate benefit of a college degree seems nonexistent, the differentiation is seen over the entire course of a career.
This is the “Job vs. Career” trajectory. Individuals without a degree move slowly towards their highest earning, with stagnant early years. We do see growth in later years, possibly coming from specialized skills acquired through experience. Individuals with a college degree may start in the same compensation range, but grow more rapidly over the course of their careers. At different milestones within an individual’s career, we see considerable incrementality for individuals with a college degree.