College Degree Value Compared to Career Earnings

Does college type matter more at age 25 than 45? In our latest Labor Matters, we analyze how different college types affect earnings across the career lifecycle. Using value-added regressions by year since graduation, we compare schools while controlling for SAT scores, majors, demographics, and more. A striking finding: liberal arts college (LAC) grads start off with the lowest earnings value-add—but they rise fast. Over 15–20 years, LACs climb about 15 percentile points, nearly catching up to grads from high-STEM schools and private research universities. Why the early-career lag? LAC grads disproportionately pursue social-impact roles—in education, nonprofits, and public service. These jobs are essential to society but often come with lower pay. Still, LACs demonstrate significant long-term gains. By mid-career, the gap narrows sharply—suggesting that the type of college you attend may matter more early in your career than later. The charts tell the story. If you care about long-term outcomes—not just first jobs—this is worth a look. Full analysis is in our latest Labor Matters. #HigherEd #LaborMarkets #LiberalArts #Careers #Earnings #Recruitment

𝗪𝗵𝗲𝗻 𝘆𝗼𝘂𝗿 𝗙𝗶𝗿𝘀𝘁 𝗝𝗼𝗯 𝘀𝗵𝗮𝗽𝗲𝘀 𝘆𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝗳𝗶𝘃𝗲 𝘆𝗲𝗮𝗿𝘀, 𝗹𝗼𝘄‑𝗶𝗻𝗰𝗼𝗺𝗲 𝗴𝗿𝗮𝗱𝘂𝗮𝘁𝗲𝘀 𝘀𝘁𝗮𝗿𝘁 𝘁𝗵𝗲 𝗿𝗮𝗰𝗲 𝗮𝗹𝗿𝗲𝗮𝗱𝘆 𝗯𝗲𝗵𝗶𝗻𝗱 ! 🎓 The first job after graduation matters far more than we think. For many graduates, that transition is rocky, and the research show it shapes earnings five years later and explain a huge part of socioeconomic gaps. In fact, early career outcomes reduce the “unexplained” earnings gap by almost two‑thirds. 💼 Early plans matter: Only 33% of lower‑income graduates had a job secured before finishing school, compared with 39% of higher‑income peers. That small difference compounds quickly. 🏢 Where you start shapes where you go: Lower‑income graduates began their careers at firms paying 18% less on average, which also meant fewer opportunities for training, advancement, and professional networks. 💰 Your starting salary sets your trajectory: Every additional $1,000 earned in your first job translates into $700 more five years later. Yet lower‑income graduates started 12% lower on average. ⏳ Stability pays off, Graduates who stayed at their first job for at least two years earned $6,800 more by Year 5, according to a new interesting research from Columbia University and the National Bureau of Economic Research using data from 80,000 graduates from a large public university system. ✅ 𝙈𝙮 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡 𝙫𝙞𝙚𝙬: I found this research fascinating and sobering it becomes. We often talk about education as a “launchpad,” but these findings show just how deeply learning pathways and college degrees shape compensation trajectories long after graduation. Your first job isn’t just a line on a CV. It’s a signal. A multiplier. A structural force that can accelerate opportunity or quietly lock in an earnings gap for years. What struck me most is how strongly early career transitions, firm size, industry match, mobility, and especially starting salary, predict where graduates land five years later. These factors explain far more about future earnings than anything tied to pre‑college background or even end‑of‑college performance. In other words: 🎓 What you study, where you land, and how you start truly matter. And for low‑income graduates, the stakes are even higher. This wonderful research reminds us that education isn’t just about acquiring knowledge, it’s about shaping access, networks, and long‑term earning power. It also challenges us to rethink how we support students as they step into the labor market, because the first step is often the one that defines the slope of the journey. 🙏 Thank you Columbia University researchers team for these insightful findings: Judith Scott-Clayton Veronica M. Minaya CJ Libassi 🔑 How can we ensure that learning and degrees translate into real opportunity, not long‑term inequality? #FirstJob #EarlyCareer #CareerLaunch

University was once the golden ticket. Now it's a £53,000 question with no simple answer. This week, more than 750,000 UK students received their A-level results. Many will decide whether university is their next step. 25 years ago, Tony Blair set an ambitious target: 50% of young people should get degrees. This has now been achieved. The logic seemed clear. More graduates = high skilled workers = higher earnings and economic growth. But today's equation looks different: Tuition fees: £9,535/year (from completely free a generation ago) • Living costs: £60,000+ over three years • Average debt: £53,000 upon graduation • Repayment period: Up to 40 years But the graduate premium does still exist: → Graduate starting salary: £32,000 → Non-graduate starting salary: £26,000 Over a lifetime, graduates average £42,000 annually vs £30,000 for non-graduates. But that gap is shrinking fast as AI is rapidly transforming the job market. Recruiters report fewer graduate roles in traditional white-collar sectors. Research and analysis positions - once graduate strongholds - are increasingly vulnerable to automation. This doesn't mean degrees are obsolete. Universities remain crucial for developing critical thinking, specialised knowledge, and innovation. What about alternatives? Degree apprenticeships offer a compelling middle path: • Earn while you learn • Graduate with no debt • Gain practical experience employers value • Still obtain a recognised degree Blair's 50% target assumed university was the only path to success. We now know different routes work for different people. The real question isn't just financial ROI. It's about what you personally value: • The university experience itself (perhaps a sport you want to compete at Varsity level?) • The specific knowledge in your field • The networks you'll build • The time vs. money equation • Your learning style and preferences University remains transformative for many. But it's no longer the only option for a successful career. The most important question isn't "Is university worth it?" Don’t follow the crowd. Run your own numbers. Make your own call. It's which path aligns with your unique goals, strengths, and vision for the future?

We talk a lot about #ROI in #highered — but rarely with real numbers. Want to know what industries graduates go into? How much 💲 do they make? The U.S. Census Bureau Post-Secondary Employment Outcomes (#PSEO) tool is one of the most powerful—and underused—resources for understanding what happens to college graduates after they cross the stage. Unlike surveys or self-reported data, PSEO links student records to actual wage and employment data, showing: ✔️ Earnings by major, institution, and degree level ✔️ Employment outcomes by industry ✔️ And most powerfully: the connection between academic programs (CIP codes) and the jobs grads actually land (SOC codes) For example, you can compare business majors and social science majors from Colorado institutions—tracking not only how much they earn, but what fields they’re working in: finance, education, public administration, healthcare, and more. This is the kind of visibility students, policymakers, and institutions desperately need—especially in an era where questions about the value of college are louder than ever. And yet, tools like this exist only because of decades of public investment in linked education and labor data—infrastructure that’s increasingly under threat. If we want better advising, better workforce alignment, and better-informed decisions about majors, careers, and funding, this is the level of detail we need. 🔗 Explore the data yourself: https://lnkd.in/eSuRDjwE

Which College Degrees Have the Best Return on Investment? Summary: When evaluating college degrees based on return on investment (ROI), STEM degrees stand out as the most valuable, offering the highest financial returns over a lifetime. According to data from CollegeNPV, which analyzed information from the U.S. Department of Education and the Bureau of Labor Statistics, degrees in fields like engineering, computer and information sciences, mathematics, and engineering technologies provide the best ROI when comparing lifetime earnings minus debt with entering the workforce straight out of high school. Top College Degrees by Average ROI: Engineering: $570,616 Computer and Information Sciences: $477,229 Mathematics: $340,875 Engineering Technicians: $311,141 Business: $205,191 Architecture: $196,711 Nursing and Health Professions: $194,756 These degrees lead to high-paying jobs, making the cost of education worthwhile in terms of long-term financial gains. For example, a Harvard University computer science degree ranks highest for ROI, offering over $4 million in lifetime earnings, with a median income of $256,539 and only $14,000 in median debt. On the other hand, degrees in humanities, such as English, visual and performing arts, and theology, have much lower ROIs. English programs, in particular, have seen a 32% decrease in graduates over the last decade, largely due to a negative ROI of approximately - $39,000, which reflects the financial challenges these degrees may present compared to higher-paying fields. Key Takeaways: STEM fields offer the best lifetime earnings compared to their costs. Humanities degrees generally have lower financial returns and are seeing fewer graduates. High-ROI programs like Harvard's computer science offer substantial financial benefits. Source: https://lnkd.in/grbhMMAe #STEM #CollegeROI #EngineeringDegrees #ComputerScience #HigherEducation #FinancialPlanning #CareerAdvice #InvestmentInEducation #Humanities #CollegeMajors

A college degree is worth it, but what you major in can cost you a million dollars. Georgetown University Center on Education and the Workforce’s new report shows your college major can change your lifetime earnings by more than $1 million. STEM, business, and healthcare lead the pack. Arts, education, and social work? Much lower financial returns. Students from low-income backgrounds are more likely to land in the lowest-paying majors. That should make all of us pause. But here’s the bigger picture: Even with those gaps, a bachelor’s degree still pays off over time, especially compared to just a high school diploma. More earnings. More job stability. More room to grow. Yes, students need to weigh the costs. Yes, some degrees come with tougher tradeoffs. But the long-term value of going beyond high school? The data says it’s still there. Read more here: https://lnkd.in/dXYrEdJh

Is College Worth It? The headlines keep telling us Americans have lost faith in college. And it's true—public opinion polls show growing skepticism about whether a degree is worth the cost. But families aren't listening to the polls. They're looking at the evidence. National enrollment data show 19.4 million students are pursuing postsecondary education this fall, with undergraduate enrollment up 1.2 percent. Meanwhile, recent analysis confirms that college graduates earn roughly 70 percent more than those with only a high school diploma, a gap that has held steady for two decades. College graduates also live about 8 years longer than their peers without degrees. The students who've been through it know the value firsthand. An AASCU survey data show that 84 percent of alumni are satisfied with their degrees, and 78 percent expect to outearn the households they grew up in. For first-generation students, 89 percent expect to earn more than the household they grew up in. For alumni of color, it's 89 percent. These aren't marginal gains; they're life-changing outcomes for the students and families who need them most. Public perception matters, but results matter more. When families weigh the decision, the data is clear: college delivers. https://lnkd.in/eXtyewBg

I just downloaded this report and can't wait to read it! Georgetown University Center on Education and the Workforce just released fascinating new research on how college major choices impact career outcomes. The headline: bachelor's degree holders earn 70% more than high school graduates ($81K vs $48K median), but the major you choose makes a huge difference. Key findings: - Median earnings by field range from $58K (education/public service) to $98K (STEM) - Within STEM alone, majors vary from $64K to $146K - Computer science graduates are seeing 6.8% unemployment despite strong pay for those who land jobs - Graduate degrees add 29% more earnings on average, but the premium varies widely by field What's particularly interesting: representation in high-paying fields remains unequal across demographic groups, which has implications not just for individual careers but for addressing national skills shortages. Worth a read for anyone advising students, hiring talent, or thinking about workforce development. 🔗 https://lnkd.in/d8GE2q2A #HigherEducation #WorkforceDevelopment #CareerPlanning

"Bill Gates dropped out of college, so degrees don't matter." That's a dangerous perspective! Here's what nobody talks about: For every Gates or Zuckerberg, there are millions of dropouts you've never heard of. Because they didn't make it. I started out washing dishes for minimum wage. I've watched people I grew up with take every possible path. The data and my lived experience point to the same conclusion. Degrees are still the highest-probability path to financial health, career autonomy, and personal fulfillment. The Bureau of Labor Statistics makes this painfully clear. Doctorate holders earn roughly $2,300/week with 1.2% unemployment. High school diploma holders? $930/week — with significantly higher unemployment. That's not opinion. That's data. In my latest video, I break down exactly why this matters for students AND professionals thinking about their next credential: 📊 The real earnings gap at every degree level — and why it's wider than most people assume 🚪 Why degrees don't just get dollars — they open doors to autonomy, meaning, and the kind of work you actually want to do 💡 The "dark room" analogy that reframes education as awareness, not just a credential on your wall Is a degree the ONLY path? No. Is it the highest-probability path? The data says yes. Overwhelmingly. Watch the full breakdown here: https://lnkd.in/g7DAKS3K I'm curious — what's been the biggest return on YOUR education that had nothing to do with salary? Drop it in the comments. #HigherEducation #CareerDevelopment #CollegeSuccess #LifelongLearning #StudentSuccess

New research from Georgetown University Center on Education and the Workforce takes a deep dive into how college majors shape earnings and employment outcomes.   The Major Payoff shows that bachelor’s degree holders earn, on average, 70% more than those with only a high school diploma — but the gap across majors is striking, spanning from education and public service fields to STEM and business.   The takeaway: what you study can matter just as much as whether you go.   This data is a valuable resource for students, families, and policymakers thinking about how to connect education and opportunity. Explore the full report: https://lnkd.in/g3tDwaia