Let’s break down the facts about higher education and income. The Bureau of Labor Statistics (BLS) has found that, generally, the more education you have, the more money you’re likely to make. So, someone with a Ph.D. usually earns more than someone with a master’s degree, who in turn earns more than someone with a bachelor’s degree, and so on. But it’s not as simple as it sounds.
The average earnings don’t tell the whole story. High-paying jobs that require a Ph.D. can be tough to find, and the salary increase might not be enough to cover the cost of getting the degree. Plus, spending time out of the workforce to study can sometimes hurt your earning potential. So, it’s important to weigh up the potential salary and career benefits against the cost of the degree and lost earnings.
Why might you want to get a Ph.D.? Well, some people do it to pursue research, gain a deeper understanding of their field, or explore a passion. Others might be attracted to the prestige of having a Ph.D. In many cases, getting a doctorate can be good for your career and earning potential, but only in certain circumstances.
Firstly, if your job requires a Ph.D., you won’t be able to progress without one. For example, most colleges require professors to have a doctoral degree, unless they’re in a field where a master’s degree is the highest qualification, like fine arts. Doctorates are also standard in all research sciences, whether you’re working in academia, government, or the private sector.
There are also jobs where a doctorate isn’t required but could be useful. In these cases, you need to think carefully about whether the potential increase in earnings will outweigh the cost of the degree. For instance, a doctoral degree in a liberal arts discipline could give you a competitive edge in various career fields.
Something else to consider is that you don’t need to have a master’s degree to enroll in most U.S. doctoral programs. And getting a doctorate might actually be cheaper. Universities often use master’s degrees as a way to make money, but doctoral programs are often funded with grants. So, if your job requires a master’s degree, it might be worth looking into whether getting a Ph.D. would be more cost-effective.
Secondly, more education usually leads to bigger paychecks. According to 2020 BLS data, the average bachelor’s degree-holder earns $1,305 per week, while the average Ph.D.-holder earns $1,885 per week — a difference of 44.4%. However, the difference is less dramatic between a master’s and a doctorate, with Ph.D.-holders earning only 22% more on average. But remember, these are just averages, and your own career trajectory might be different.
Thirdly, more education usually leads to higher employment rates. According to the BLS data, doctorate-holders have the lowest rate of unemployment of all the education levels. As of 2020, the unemployment rate for Ph.D. degree-holders is 2.5% compared to 3.1% for master’s degree-holders and 4.1% for bachelor’s degree holders.
Finally, if your Ph.D. program is mostly or fully funded, it could be worth it. Ph.D.-holders earn on average nearly $1 million more than master’s degree-holders over their lifetimes. But that gap quickly disappears if student loan payments eat it up. The extra years of education don’t come cheap. On average, it can take anywhere from four to 8 years to complete a doctorate, costing anywhere from an average of $92,200 at a public university to upward of $294,200 at a private university.
However, there are situations where getting a doctoral degree may not be worth it. If you can get by without one, if you won’t earn enough to make the cost worth it, if it won’t guarantee you a job, or if you can’t afford to be out of the workforce for 4 to 8 years, then a Ph.D. might not be the best choice for you.
In conclusion, while more education often leads to more money and a better career, that doesn’t mean it’s always the best move. So take the time to consider the possible downsides before committing the next several years of your life, and potentially tens of thousands of dollars, to further education.
