Question

Why do the higher-earning majors make more? What is the economic theory underpinning the vast differences in income? How did you decide what you would major in? What kind of information would be helpful when you make your decision to major in a specific subject? how does knowing what majors typically earn after college affect your view of how much you pay to go to college?

Answer 1

The relationship among major, gender, race/ethnicity, attending graduate school, and earnings provides the economic value of college majors. The investment in earning a college degree is of a great importance but the economic outcome is also maximized on the basis of a student’s undergraduate major choice. In fact, the difference in earning potential can vary by more than 300 percent.

A study was conducted by Anthony P. Carnevale, Jeff Strohl and Michelle Melton, of the Georgetown University on education and the workforce. It was based on the data from the United States Census 2009 American Community Survey that included more than three million bachelor degree holders who were asked about their college major, employment position and salary. The age group lied between 25 to 64.

The study found that the college graduates made 84 percent more over a lifetime than those with only high school diplomas. Further analysis of 171 majors in 15 categories found that various undergraduate majors can lead to significantly different median wages, that majors are highly segregated by race/ethnicity and gender, that men tend to be concentrated in the higher-earning majors, such as engineering and pharmaceutical sciences, while women gravitate toward the lowest-earning, such as education, art and social work.

Also, majors that are the most popular are not the ones that make the most money, that certain undergraduate majors are more likely to go on to graduate school than others and that moving into a managerial status will improve earning potential.

It has always been an important decision to choose a major to prepare for a future career and the findings indicate the choice also has a direct impact on a graduate’s future earning potential.