In today’s uncertain job market, how do you decide whether or not to go to graduate school?  More than it was for any earlier generation, it now comes down to a cost-benefit analysis.

First, is the cost, in tuition, fees and probably long-term student loan indebtedness worth the benefit in your profession (or the one you hope to enter) of having an advanced degree?  Second, is employment in this field relatively stable and likely to remain stable in the future?  If you lose your job or have to start over again at the bottom of a different field, your analysis of the financial benefit of that master’s may have been optimistic.

If you are already working in your chosen field, the decision will be easier. 

A teacher with tenure, for example, can look at his district’s pay schedule, determine how many steps up the scale he moves with a Masters, consider how many years he has to retirement, and make an accurate prediction of benefit from the advanced degree.  An accountant can easily determine the benefit in terms of career advancement to having more than a bachelor’s. 

Some occupations --like meteorologists, speech-language pathologists, and social workers-- require a master’s in order to enter the field.  Librarians have traditionally needed a Master’s in Library Science to advance.  These days, advanced education in digital media is probably the key to a well-paying library job.

Historically, each additional step in education raised your average annual earnings.  The U.S. Department of Labor’s Bureau of Labor Statistics (BLS) observed that all of the increase in the numbers of people employed since 1992 has been among those with some college and the most has been among those with at least a bachelor’s degree.  In 2009, the bureau reported, the earnings of those with bachelor’s degrees was 1.8 times the earnings of workers with only high school diplomas.

So does this advantage carry forward to people with master’s degrees?  Yes, at least as of 2009.  The BLS found that among American workers age 25 and older, those with Master’s degrees had median weekly earnings of $1,257 compared to $1,025 for those with a bachelor’s.  That’s $232 more per week or more than $12,000 annually.

Some questions to consider as you make this decision:

  • Why am I thinking about a master’s?
  • Am I trying to advance in my present career?  If so, am I sure that the advanced degree will be a benefit and get me beyond the low end of the pay scale?  Is it enough to justify the expense?
  • Am I trying to change careers?  Is a master’s necessary to enter the new career?  If not, will it help me enter the field or should I instead try to get an entry level job and postpone the decision about the master’s?  If I’m hoping to change careers, am I willing to bet the cost of my new degree that there will still be jobs available in that field when I get my sheepskin?
  • Am I going to grad school to fill time while the job market (hopefully) stabilizes.  If I lack experience in this field, can I, while I’m continuing my education, get a teaching assistant position in my department, or an internship, so that when I finish my coursework I have something to put on my resume?
  • Is it important in my field that the master’s come from a highly-regarded university, or can I possibly obtain the same long-term benefit with a lower-cost degree from a second-tier institution?

Artwork: pdclipart.org , public domain