Graduate Earnings Premiums From Independent Schools: What You Should Know
May 10, 2016
The important links between a graduate student’s earning premium and the student’s independent school have a greater impact than many students consider as they pursue their college degree. Although this correlation has been suspected for some time, prospective graduate students should evaluate the potential future impact of their current educational decisions based on all available information. Since students now have the ability to examine various options with a new perspective thanks to the digital world we all live in. The choice to attend an independent school is a very important variable that will affect with other factors.
Graduate Earnings Premiums
Today, there is an abundance of research available to provide prospective graduate students with valuable insights into their potential future earnings after attending independent schools. However, it is important to use this information within the context of the larger social, cultural and economic environments. The independent institution’s fee structure will have a large impact on future earnings, according to one study from Cambridge and Harvard. The student’s major, personal background and personal financial situation will also contribute substantially. These factors will all interact within the internal character of the particular institution the student is planning to attend, so keep that in mind when evaluating the merits of enrolling any particular independent school for graduate work.
For example, the earnings premium for graduate students attending prestigious schools in certain disciplines is higher than the earnings reported by students who earned a degree in non-premium fields. Specifically, obtaining a degree in economics or in medicine can increase the graduate’s earnings premium considerably. Status of any institution offering a degree can have massive affects for the long haul and prospective students must really consider the impact of their school and program choices.
Gender also played a prominent role in the graduate earnings premium, so it was integrated into the final analysis. Males attending certain independent institutions showed a noticeable increase in their earnings compared to other groups. It was clear that these men could expect to earn a higher salary by attending an institution that charges high fees. Academic performance did not affect the final outcome nearly as much as the variables associated with gender and the school’s fees. The gap between males and females was large enough to warrant separation. Because the income of the parents is also a critical variable, the school’s fees are closely correlated with the income of the parents. Some studies on graduate earnings premiums suggest that male students from high-income brackets who major in medicine or economics can maximize graduate earnings premiums by attending independent schools that charge high fees. Less advantaged students must consider other variables when determining their decision-making process.
Most of all, considering the difference between price and value, prestige and value, quality and academics are all just examples of the importance of selecting the best program for students as they embark on their college or graduate education. Oftene quality-of-life is most important, therefore redefining the meaning of the premium that they expect to gain.
What is a Graduate Earnings Premium?