Wondering if a College Degree Pays Off? See How It Affects Lifetime Income | Global News Avenue

Wondering if a College Degree Pays Off? See How It Affects Lifetime Income

Income and unemployment rate by education, 2023

education level
median weekly income
unemployment rate(%)

PhD
$2,109 USD
1.6

Professional degree
$2,206
1.2

master
$1,737
2.0

Bachelor’s degree
$1,493
2.2

Associate’s Degree
$1,058
2.7

Some universities don’t have degrees
$992
3.3

high school diploma
$899
3.9

Less than a high school diploma
$708
5.6

Source: U.S. Bureau of Labor Statistics

“A college degree is a signal to employers about a candidate’s suitability,” says Dr. Kendrick RobertsonAssistant Professor of Political Science at Pepperdine University. “Not only does a degree demonstrate the knowledge base required in a specific field, but a college degree also demonstrates a candidate’s ability to complete tasks in a timely, complete, and accurate manner—all traits that employers want in new employees because of lower training costs and lower risk to the employer. Risk of error.”

Here are some statistical examples of how a college education affects income levels:

The poverty rate for people without a high school diploma is about five and a half times higher than for people with a bachelor’s degree. In 2023, the median annual income for bachelor’s degree holders aged 22 to 27 will be $60,000, while the median annual income for high school graduates will be $36,000.As of 2025, the unemployment rate for people over 25 with a bachelor’s degree is slightly more than half that of people with only a high school diploma.

Examples of How a College Degree Increases Lifetime Earnings
Of course, going to college and getting a degree doesn’t guarantee you’ll earn more than your non-college-educated peers. Many factors influence total lifetime earnings, including degree type, career choice, geographic location, seasonal versus year-round employment, gender, and more.

hint
One of the most important factors affecting your earnings is the type of degree you earn, which determines your earning prospects for relevant job opportunities.
The following are examples of high-paying careers. Many require at least a bachelor’s degree:

computer software
Job opportunities for graduates in this field are in demand in areas such as software development, cybersecurity and data analytics. As of May 2023, the median annual wage for this group was $104,420, more than double the median annual wage for all occupations of $48,060, according to the Bureau of Labor Statistics.

electrical engineering
An electrical engineering degree leads to a career designing, developing, and testing electrical equipment. This work is needed in various sectors, including manufacturing, telecommunications and the federal government. According to the Bureau of Labor Statistics, the median annual salary for electrical engineers in 2023 is $109,010.

Business Administration and Financial Management
A business administration or management degree can prepare you for senior management and executive positions. The U.S. Bureau of Labor Statistics reports that the median annual salary for financial managers in 2023 is $156,100.

Physicians and Surgeons
With a very high median annual salary of over $239,200, the educational requirements to become a medical professional are extensive.

The BLS data also breaks down all occupations under this type of degree. Here are some from that list:

Oral and maxillofacial surgeonradiologistObstetrician and GynecologistdermatologistanesthetistNeurologist

Petroleum Engineering
Petroleum engineers extract oil and natural gas from the earth. They develop plans and design, install and maintain oilfield equipment. They also monitor production and seek ways to extract more gas and oil from existing wells.

As demand increases in the energy sector, there will be a continuing need for petroleum engineers. In 2023, the median annual salary for these professionals is $135,690.

From this list you can see, highest paying professions Often very technical oriented and may require some education beyond a bachelor’s degree. If you’re willing to earn a STEM (Science, Technology, Engineering, or Mathematics) degree, your odds of earning more over your lifetime increase.

Other factors that affect lifetime earnings
While earning a college degree may mean good news for your lifetime earnings, other factors also influence where you fall on the income distribution bell curve.

your age when you graduated Lifetime earnings can be significantly affected, as graduating early means working longer in the future, potentially increasing your total earnings over time.

geographical location It also plays a huge role in college graduates’ lifetime earnings. Salaries and costs of living can vary significantly between regions and countries, affecting the value of your chosen degree and job position.

your education level Also plays a role in the lifetime earnings equation. For example, you will earn more as an engineer with a PhD. than a bachelor’s degree.

at last, job role Make a difference in your income. A business administration degree will be of greatest value when working in a supervisory or management role. If your business degree is for a sales position where the pay structure includes commission, the potential for higher earnings increases significantly.

hint
When choosing a degree, consider major focus, subject matter, and how and where you can apply your education, skills, and experience.
The long-term benefits of higher education
The benefits of a college degree go beyond just a higher income. These include lower unemployment, career advancement opportunities and a sense of personal fulfillment.

In addition, college-educated people tend to enjoy other benefits, such as increased job security and access to health insurance, retirement and savings plans.

lifelong benefit
A college education can continue to pay dividends even after the active money-making years, according to Social Security Administration survey data. Higher earnings during your career mean higher Social Security benefits in retirement, as well as the potential for employer-sponsored retirement accounts like 401(k)s.

Additionally, higher education is associated with better health outcomes. The U.S. Department of Health and Human Services summarizes education data into social factors that influence health:

“Overall, higher education improves health and well-being and reduces the risk of premature death. College graduates have better self-reported health than high school graduates, with those with more education reporting heart disease, high blood pressure, Conditions such as diabetes, anxiety and depression are less likely.”

“People with higher levels of education are more likely to exercise, drink less alcohol, and seek preventive health care when needed,” the report adds.

Universities seek to improve ROI
It is also important to note that many higher education institutions are modifying their curricula so that students graduate with specific skills and connections. This makes the education process more efficient while generating a positive ROI early on.

Ryan Lufkin is the Vice President of Global Strategy at Instruct, an educational technology company. “In an era where universities like ASU work directly with employers to design degree programs to ensure graduates have the skills employers need to be immediately productive, degrees increasingly provide a clear path to high-paying jobs,” he said. way.”

High-paying jobs that don’t require a college degree
Despite compelling evidence that college-educated people achieve better financial outcomes, there are some high-paying careers and jobs that don’t require a college degree. If you don’t want to or can’t go to college, it’s good to know about career options.

Here are some factors to consider:

High-paying jobs that don’t require a degree

job title
Median salary in 2023

Airline and commercial pilots
$171,210

Elevator and escalator installers and repairers
$102,420

Nuclear power reactor operator
$100,890

Web developers and digital designers
$92,750

radiation therapist
$98,300

Power plant operators, distributors and dispatchers
$100,890

Electrical line installers and repairers
$85,420

postmaster and mailmaster
$88,670

Transportation, Warehousing and Distribution Manager
$99,200

Building and Building Inspectors
$67,700

What is the average cost of college in the United States?
For the 2023-2024 academic year, the average total cost of attendance for a full-time undergraduate student living on campus is $60,420 at private institutions and $28,840 at public institutions when paying in-state tuition.

What is the formula for lifetime income?
The formula for calculating your lifetime earnings involves estimating the total amount of money you will earn during your working years. Multiply your annual income by your total years of employment. As an option, you can also include income at retirement age.

What is the highest educational level?
The highest level of study is the PhD. (Ph.D.) is available in most disciplines. Professional degrees such as MD (Doctor of Medicine) or JD (Doctor of Laws) are considered the highest educational qualifications in fields such as medicine and law respectively.

bottom line
Although college costs continue to rise, data still shows that higher education is a good investment in your overall quality of life. As mentioned previously, quality of life and associated income can vary significantly based on many factors. Therefore, potential degree seekers should carefully consider degree selection, career, job level, and other variables that affect financial well-being.

By examining how a degree affects your lifetime earnings and how much money you spend to earn it, you may find that the benefits far outweigh the direct costs. From here, it can also help you choose the most efficient and cost-effective route to a college degree.