When thinking about whether or not to go to college, the potential for higher earnings is one of the most important factors considered. But do all college degrees pay off?
Often, one is told that those with a college degree make significantly more than those without one, but this doesn’t reveal the enormous variation in pay by college major. It turns out that what you major in can be more important than how much college you complete.
Engineering majors can expect to make the same amount as the average PhD holder, while Education majors will make the same as someone with a 2-year Associate’s degree.
Read on for information on majors that pay off and those that don’t. As well as some reasons why pay varies so much depending on what you major in.
There’s More To Choosing a Major Than Pay
While many choose a major for other reasons than future earnings, information on income still plays an important role in deciding if the benefits of the major outweigh the financial risks. This article, of course, is limited to only future income considerations.
Ultimately students must also consider their interests and passions when making a choice of college major as well as future income.
The Majors That Pay Off
A report produced in 2011 by the US Census Bureau crunched the numbers on average earnings over the working lifetime by college major and occupation. The results are fascinating, and I highly recommend checking the report out for the full table.
These majors earned more than average and had the following expected earnings over a working lifetime (divide by 40 to get the annual salary).
- Engineering – $3.5 Million
- Computers and Math – $3.1 Million
- Science and Engineering Related – $2.6 Million
- Business – $2.6 Million
- Physical Science – $2.6 Million
- Social Science – $2.5 Million
The Majors that Don’t Pay Off
The following majors were found to have earnings statistically lower than the average of all college majors.
- Education – $1.8 Million
- Arts – $2.0 Million
- Psychology – $2.0 Million
- Liberal Arts – $2.1 Million
- Literature – $2.1 Million
- Biological Sciences – $2.3 Million
- Communications – $2.3 Million
Earnings By Level of Education
To put the earnings by major in perspective, here are the lifetime earnings by level of education. Of all degrees, the professional degree (medical doctor, lawyer, etc) guarantees the highest income.
- High School Degree – $1.4 Million
- Associates (2 Year) Degree – $1.8 Million
- Bachelor’s Degree – $2.4 Million
- Master’s Degree – $2.8 Million
- Doctorate Degree – $3.5 Million
- Professional Degree (MD, JD, etc) – $4.1 Million
Why Does Pay Vary by College Major?
This is a question that’s still being researched. Using data from Norway, some researchers found that the ability (intelligence, etc) of the students did not explain the difference in pay, it really does seem that what someone majors in causes their pay to be higher or lower.
Why would this be? Different majors are producing different sets of skills and abilities that the student can then take to the job marketplace. STEM skills are in high demand right now, and thus students with those skills will be compensated more highly.
Another factor is public versus private employment. Most engineers work for private companies while most education workers likely work for the public school system, which likely will affect earnings.
It Pays Off To Develop More Skills in College
Another factor may be how much learning and studying was actually done while in college. If you noticed that the high-paying majors tend to be more rigorous, while lower paying majors less rigorous, this is indeed backed up by my preliminary research.
Difficulty varies tremendously by major as do hours of study. In 2017, a communications major studied about 12.5 hours per week on average, while an engineering major studied between 18-20 hours per week.
Over four years this kind of difference in studying will result in an enormous difference in skills and abilities that the engineering student has to offer to prospective employers. While a low level of skills implies low value to an employer and thus will result in lower wages.
It seems that majoring in something more difficult, pays off.
Thanks for reading! I’d enjoy hearing your thoughts in the comments.
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