ERIC ED524305: What's It Worth? The Economic Value of College Majors

2011·9.4 MB·English

by  ERIC

Anthony P. Carnevale
Jeff Strohl
Michelle Melton
Acknowledgements
s
t
n
e
We would like to express our gratitude to the individuals and organizations that m
e
ng
have made this report possible. First, we thank the Lumina Foundation and the od
tie
Bill and Melinda Gates Foundation for their support of our research over the past ducowl
on
rk
few years, and in particular, we are grateful for the support of Jamie Merisotis, IntAc
Hilary Pennington, Holly Zanville, and Parminder Jassal. We are honored to be • •
33
partners in their mission of promoting postsecondary access and completion
for all Americans.
We also want to thank our editor, Vic Caleca, and our designer, Woodpile Studios,
as well as Ban Cheah, Nicole Smith, Stephen Rose, Tamara Jayasundera,
Laura Meyer, Peter Daniels, and numerous other colleagues, too many to list here,
who provided support and insight throughout the process.
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Table of Contents
s
t
Introduction 6 n
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Summary of Findings 8 C
of
Table of Major Groups 30 ble
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Comparison Across Major Groups 32
Agriculture and Natural Resources 46
Arts 54
Biology and Life Science 62
Business 74
Communications and Journalism 82
Computers and Mathematics 90
Education 98
Engineering 110
Health 124
Humanities and Liberal Arts 132
Industrial Arts and Consumer Services 144
Law and Public Policy 152
Physical Sciences 160
Psychology and Social Work 168
Social Science 176
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Introduction
When considering the question Answering that big general question has been
n relatively easy, then. But other, more specific
o of whether earning a college
cti questions have been harder to resolve. Namely,
du degree is worth the investment which majors should students consider if
o
ntr in these uncertain economic they want the best chance of earning family-
I
• times, here is a number to sustaining wages? And, are all Bachelor’s
6 degrees the same?
keep in mind:
Over the years, there has been a persistent

lack of available information about the
84 percent.
economic consequences of choosing one
academic major over another. As a result,
students have had little financial data on
On average, that is how much more money hand to help them choose between majors.
a full-time, full-year worker with a Bachelor’s
degree can expect to earn over a lifetime than No longer. Our report finds that different
a colleague who has no better than a high majors have different economic value. While
school diploma. going to college is undoubtedly a wise deci-
sion, what you take while you’re there matters
Clearly, for most students, when asked a lot, too. On average, as we stated, Bachelor’s
whether to go to college, the answer should degree holders earn 84 percent more than
be a resounding “yes.” And statistics show those with a high school diploma. However,
that Americans are drawing that conclusion in returns to majors run a wide gamut. At the
ever-growing numbers. Since 1992, the propor- extreme, the highest earning major earns 314
tion of workers with Bachelor’s degrees in percent more at the median than the lowest-
At the extreme, the U.S. labor force has grown from 28 percent earning major at the median.
to 34 percent.
the highest
Although earning potential is not the only
earning major
issue a student should consider when
earns 314 percent
selecting a major, we believe it is an important
more at the one. That is why we detail the economic value
median than the of 171 specific undergraduate majors.1
lowest-earning
major at the
median.
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To summarize, while we found that any degree In the summary of findings, we give an Not all Bachelor’s
is better than no degree, we also found that overview that compares all detailed majors degrees are the on
there are significant differences. For example, by earnings, gender and racial/ethnic composi- cti
same. Earnings are u
the median earnings for full-time, full-year tion, labor force characteristics, and the like. d
o
workers with Bachelor’s degrees (but no The second section aggregates the 171 majors a function not only tr
n
graduate diplomas) vary dramatically — from into 15 major groups. These groups are: of which degree • I
$29,000 for Counseling Psychology majors to you have, but also 7
$120,000 for Petroleum Engineering majors. l Agriculture and Natural Resources
what you have
l Arts
majored in.
In some ways, then, a student’s choice of l Biology and Life Science
undergraduate college major can be almost l Business
as important as deciding whether to get a l Communications and Journalism
Bachelor’s degree at all. l Computers and Mathematics
l Education
Among other things, we detail: l Engineering
l Health
l Median earnings and earnings variation l Humanities and Liberal Arts
among typical workers (at the 25th and 75th l Industrial Arts and Consumer Services
percentiles) for all (not only recent graduates) l Law and Public Policy
full-time, full-year workers with a terminal l Physical Sciences 1 Our study evaluates
Bachelor’s degree. l Psychology and Social Work the economic impact of
l These same earnings information by gender l Social Science different majors only on
and race/ethnicity. full-time, full-year workers,
and all of our data, with one
l The likelihood that a person with a specific The second section compares earnings and
exception, analyzes holders
major will obtain a graduate degree and the other outcomes across broad major groups.
of Bachelor’s degrees only
subsequent earnings return that a graduate For example, we detail the wages for Physical
(those who do not get a
degree confers. Sciences majors compared to Humanities and
graduate degree).
l The pathways between education and work: Liberal Arts, and the likelihood of attaining a
which occupations and industries employ graduate degree between Education and Com-
the most workers with various majors. munications and Journalism majors.
l Data on labor market attachment (employ-
ment and work status) by specific The remaining sections deal in detail with
undergraduate major. each of the 15 major groups. They compare
the majors within these groups, providing
information on, for instance, the differences
in earnings between a General Business major
and an Accounting major.
The list of all 171 majors and the 15 groups into
which they fall can be found on page 30.
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Summary of Findings:
Highlights and Tables of Detailed Majors
Gender Concentrations by Major
The 2009 American Community
s
g
din Survey includes questions l Early Childhood Education is the major
n
Fi on major field of study for all with the highest proportion of women
of (97 percent). It is followed by Medical
y individuals holding a Bachelor’s
r Assisting Services (96 percent), and
a
m
degree that results in 171 Communication Disorders Sciences
m
u and Services (94 percent).
S majors. This section details
• l The majors in which women are most
8 findings at the specific heavily concentrated are almost exclusively
in the Education and Health fields.
major level.
l The majors with the highest proportion of
men are Naval Architecture and Marine
Engineering (97 percent), and Mechanical
Most and Least Popular Majors
Engineering and Related Technologies
(94 percent).
Given the immense number of majors avail-
l The top 10 majors with the highest
able, any one attracts only a small percentage
proportion of men are in the Engineering
of the total population.
and Industrial Arts and Consumer Services
majors. (See Tables 3-4)
l Business Management and Administration
(8 percent) is the most popular major,
Top Majors by Race/Ethnicity
followed by General Business (5 percent),
Accounting (5 percent), and Nursing
l Asians with Bachelor’s degrees are most
(4 percent).
concentrated in Computer Engineering
l The least popular majors include Military (33 percent of people in these majors are
Technologies, Soil Science, and Pharmacology
Asian), followed by Statistics and Decision
(all less than 1 percent of all majors).
Science (30 percent) and Neuroscience
(See Tables 1-2)
(27 percent).
l School Student Counseling has the highest
proportion of African-American Bachelor’s
degree holders (38 percent), followed by
Which degree you
Human Services and Community Organization
have matters—but (21 percent) and Counseling Psychology
so does your major. (20 percent).
l Biological Engineering has the highest
concentration of Hispanic Bachelor’s degree
holders (22 percent), followed by Interna-
tional Business (21 percent), and Social
Psychology (19 percent).
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l Other Races (including Pacific Islanders Highest- and Lowest-earning Majors Median earnings
s
g
and Native Americans) are most concentrated for those with n
di
in Court Reporting (8 percent), followed by l Petroleum Engineering is by far the highest- n
Mathematics and Computer Science earning Bachelor’s degree major with Bvaarcyh gerloera’tsl yd—eg rees of Fi
(4 percent), and Cognitive Science and median earnings of $120,000 and 75th y
r
Biopsychology (3 percent). percentile earnings of $189,000. This is from $29,000 ma
l White Bachelor’s degree holders are con- followed by Pharmacy Pharmaceutical for Counseling um
centrated in Forestry (93 percent), Natural Sciences and Administration with median S
Psychology majors •
Resources Management (92 percent), and earnings of $105,000 and Mathematical
9
to $120,000 for
Agriculture Production and Management and Computer Science with median
(92 percent). (See Tables 5-9) earnings of $98,000. Petroleum Engi-
l Counseling Psychology is the lowest-paying neering majors.
Earnings for the Most Popular and Bachelor’s degree major with a median
Least Popular Majors2 of $29,000 and a 75th percentile peak of
$42,000. This is followed by Early Childhood
l Business Management and Administration Education, with median earnings of $36,000
is the most popular major (8 percent of and Theology and Religious Vocations and
all majors). Bachelor’s degree holders with Human Services and Community Organiza-
this major earn $58,000 at the median and tion, which both have median earnings of
their earnings range from $40,000 $38,000. (See Tables 12-13)
at the 25th Percentile to $85,000 at the
75th Percentile. Majors with the Lowest Earnings at the
l General Business is the second most 25th Percentile
popular major (5 percent of all majors) with
median earnings of $60,000, ranging from Another way to understand the value of a
$40,000 at the 25th percentile to $90,000 major is by the earnings at the 25th percentile.
at the 75th percentile. From this perspective:
l Accounting is the third most popular major
(4 percent) and earns $63,000 at the median l Pharmacy Pharmaceutical Sciences and
and ranges from $43,000 at the 25th percen- Administration (25th percentile: $83,000),
tile to $95,000 at the 75th percentile. Petroleum Engineering (25th percentile:
l At the other end of the spectrum, $82,000), and Mathematics and Computer
some of the least popular majors include Science (25th percentile: $75,000) are the
Actuarial Science (median $68,000), top three earning majors.
2 All earnings data are
Oceanography (median $70,000), Botany l Counseling Psychology has the lowest 25th
for full-time, full-year
(median $42,000), and Miscellaneous percentile earnings ($21,000), followed by
workers with a terminal
Agriculture (median $47,000). Health and Medical Preparatory Programs
Bachelor’s degree
(SeeTables 10-11) (25th percentile: $24,000), and Studio Arts (no graduate degree).
(25th percentile: $26,000). (See Tables 29-30)
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Variations in Earnings Highest- and Lowest-earning Majors: Men
There are numerous reasons why Bachelor’s- l Male Bachelor’s degree holders4 earn
degree holders earn widely varying amounts— the most with a major in Petroleum
even within a given major. As might be Engineering (median $120,000), Pharmacy
expected, majors that earn the most also Pharmaceutical Sciences and Administration
have the highest variation in earnings. (median $110,000), and Chemical Engineering
While having the
(median: $92,000).
s highest median l Petroleum Engineering has the largest l Male Bachelor’s degree holders earn the
g
n
di earnings, Petroleum gap between earnings at the 25th and 75th least with a Visual and Performing Arts
n
Fi Engineering also has percentiles: $107,000. major (median: $36,000); one of the few
of l This is followed by Naval Architecture and majors where women earn more than men.
y extreme variation.
r Marine Engineering majors (variation: This is followed by Theology and Religious
a
m The gap between $76,000) and Mining and Mineral Vocations (median: $40,000) and Human
m
u the typical highest Engineering majors (variation: $73,000). Services and Community Organization
S
• earning and typical l Early Childhood Education majors have (median: $40,000). (See Tables 16-17)
10 the least variation ($16,000), followed by
lowest earnings is
Teacher Education ($18,000), and Special Earnings by Race/Ethnicity5
$107,000.
Needs Education majors ($18,000).
(See Tables 27-28) l Whites have the highest earnings with a
Bachelor’s degree in Petroleum Engineering
Highest- and Lowest-earning Majors: Women (median: $120,000) and earn the least
with a major in Early Childhood Education
l Female Bachelor’s degree holders3 earn (median: $36,000).
the most with a Pharmacy Pharmaceutical l African-Americans earn the most with a
Sciences and Administration (median major in Electrical Engineering (median:
$100,000), followed by Information Sciences $68,000) which is significantly less than the
3 This analysis is done (median $75,000), and Chemical Engineering median for Whites ($90,000) and Asians
only on women working (median $72,000). ($80,000) in these majors, but just slightly
full-time, full-year with a
l Female Bachelor’s degree holders earn the ahead of the Hispanics ($60,000).
terminal Bachelor’s degree.
least in Theology and Religious Vocations l African-American Bachelor’s degree holders
(median $33,000) followed by Human earn the least with a major in General Medi-
4 This analysis is done on men
Services and Community Organization cal and Health Services (median: $32,000)
working full-time, full-year
(median $35,000), and Cosmetology which is $18,000 lower than Whites with
with a terminal Bachelor’s
Services and Culinary Arts (median the same major.
degree.
$36,000). (See Tables 14-15) l Hispanics earn the most with a major in
5 The variations in Mechanical Engineering ($70,000 median).
earnings by race are However, the median for Hispanics is
complicated—they $13,000 less than the median for Whites
could be due to a variety with the same major.
of factors, including l Hispanics earn the least in Theology and
occupational and industrial
Religious Vocation majors with median
segregation, age structure
earnings of $30,000, which is less than
of people who attained these
the White and African-American medians
majors (older workers would
in this field.
earn more), or discrimination.
We have not analyzed the
reasons for these differ-
ences. However, all earnings
by race are for full-time, full-
year workers with a terminal
Bachelor’s degree.
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l Asians earn the most with a Pharmacy By Industry
Pharmaceutical Sciences and Administra-
tion major (median: $100,000) which is just Frequently, knowledge is used widely across
slightly under that of Whites ($108,000). industrial sectors, but in limited cases majors
l Asians earn the least with a major in Elemen- have a tight relationship with an industrial
tary Education (median: $34,000) which is sector. This is especially the case in the Health
slightly less than that of Whites ($40,000). Services and Educational Services sectors.
l Other Races (including Pacific Islanders For instance:
and American Indians) earn the most with gs
n
a major in Nursing (median: $60,000) and l Nursing majors lead to employment in di
n
the least with a major in General Business the Health Services industry 84 percent Fi
(median: $40,000). (See Tables 18-26) of the time. of
y
l 77 percent of Bachelor’s degree holders who r
a
m
Where Majors End Up Working majored in Medical Assisting Services work m
By Occupation in the Health Services industry. Su
l 70 percent of Special Needs Education •
Bachelor’s degree majors link to occupations majors work in the Education Services sector. 11
with different levels of connectivity, but no (See Table 32)
major is perfectly linked to an occupation.
However, it is more often the case that a
l 82 percent of Nursing majors end up in major opens employment doors across
Health Practice Occupations, but 6 percent many industries. For instance:
are found in Management occupations.
l Special Needs Education is another example l Liberal Arts Majors are found in the Educa-
of a major that tightly links to an occupa- tional Services (17 percent), Health Services
tion (71 percent of these majors are found in (11 percent), Retail Trade (9 percent) and
Education). Financial Services (9 percent) industries.
(See Table 31) l Biological Engineering majors are widely
dispersed through industries. They are in
However, most majors lead to broad sets Durable Manufacturing (16 percent),
of occupations. The underlying data suggests Construction (11 percent), Professional
that this is one explanation of earnings Services (10 percent), and Non-Durable
variation. For instance: Manufacturing (9 percent) industries.
(See Table 34)
l Physics majors can be found in
Computer occupations (19 percent), Graduate Degree Attainment and Impact
Management occupations (19 percent), of Graduate School on Earnings
Engineering occupations (14 percent)
and Sales occupations (9 percent). Some majors are more likely to obtain a
l Liberal Arts majors are found in graduate degree than others. The majors
Management occupations (18 percent), with the highest rates of graduate degree
Sales occupations (15 percent), attainment include:
Office occupations (14 percent), and
Education occupations (13 percent). l School Student Counseling (91 percent);
l Educational Administration and Supervision
(89 percent);
l Health and Medical Preparatory Programs
(79 percent).
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In contrast, other majors are less likely to Work and Employment Status
obtain a graduate degree. Those majors
with the lowest rates of graduate degree Some majors, such as Genetics (99 percent),
attainment include: Mining and Mineral Engineering (99 percent),
and Geological and Geophysical Engineering
l Commercial Art and Graphic Design (97 percent) are associated with high rates of
(9 percent); working full-time.
l Communication Technologies
s (11 percent); Other fields, such as Medical Assisting
g
n
di l Construction Services (11 percent). Services (48 percent), Visual and Performing
n
Fi (See Tables 35-36) Arts (35 percent), and Communication
of Disorders Sciences and Services (32 percent)
y
r Obtaining a graduate degree leads to are associated with more part-time work.
a
m
higher earnings. How much additional (See Tables 39-40)
m
u earnings a graduate degree confers varies
S
• by undergraduate major.6 Those with the Some majors have virtually no unemploy-
12 highest earnings bump from a graduate ment, including Geological and Geophysical
degree include: Engineering, Military Technologies, Phar-
macology, and School Student Counseling.
l Health and Medical Preparatory Programs
(190 percent); Other majors have relatively high unemploy-
l Miscellaneous Social Sciences (134 percent); ment rates, among them Social Psychology
l Zoology (123 percent). (16 percent), Nuclear Engineering (11 percent),
and Educational Administration and Supervi-
Those majors which get the lowest earnings sion (11 percent). (See Tables 41-42)
boost from graduate education include:
l Atmospheric Sciences and Meteorology
(1 percent);
l Studio Arts (3 percent);
l Petroleum Engineering (7 percent).
(See Table 37-38)
6 This varies for a variety of
reasons, and we do not
claim that it varies solely
based on the undergraduate
major.
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