Austin Williams
April 17th,2023
Professor Weaver
1102
College majors play a significant role in earning potential. The choice of major can influence the type of career an individual enters. It can also influence the industry they work in, and the level of education and skills required for the job. In this essay, we will explore how college majors affect earning potential, and how they can set you up for different opportunities in life.
Firstly, according to a report by Georgetown University’s Center on Education and the Workforce, the median earnings of individuals with a bachelor’s degree vary widely based on their major. For instance, median earnings for engineering graduates are $92,000 per year. In contrast, those with an arts degree earn a median of $55,000 per year. An engineering degree is a harder degree to earn than an arts degree. This also shows the more difficult your degree is to earn, the more money you are likely to make. This also shows a significant difference in earning based on the major you pick.
Secondly, a report by the Lumina Foundation found that individuals with degrees in high-demand fields such as healthcare, engineering, and business tend to be paid more than those in fields with less demand. The report also found that individuals with degrees in fields with low demand, such as the humanities, social sciences, and the arts, tend to earn less than those in high-demand fields. This suggests that individuals who choose to major in in-demand fields earn more than those in low-demand fields. The less demanding fields pay less because they are not hard jobs, and anybody could do them. So of course, people in that field will make less than those in a high demand field where the company would like require a specific skillset that not everybody has. This means if you pick a major that will lead you to have a unique skillset, you are more likely to be paid more.
Thirdly, a study conducted by the Federal Reserve Bank of New York found that the return on investment (ROI) for college majors varies significantly. ROI is basically if the money you put in your investment will be made back or not, so in this sense when talking about college majors and degrees, a company would most likely want somebody who major is as close to the actual job they are doing as possible. The study found that individuals with degrees in engineering, computer science, and business had the highest ROI. In contrast, those with degrees in education, the arts, and social work had the lowest ROI. This finding suggests that choosing a major with a high ROI can lead to better earning potential and more opportunities in life when it comes to finding a job.
Fourthly, a report by the National Association of Colleges and Employers (NACE) found that the average starting salary for new college graduates varies significantly by major. For instance, the average starting salary for individuals with a degree in engineering was $69,961, while those with a degree in the arts had an average starting salary of $36,988. Of course there are engineering jobs that pay less and fields in the arts that pay more when starting out, but the most likely thing to happen is going to be that the degree that is harder to earn and leaves you with a more unique skillset will be much more rewarding in the end.
Lastly, a study by the Strada Education Network found that the type of college degree an individual holds can also affect their earning potential. The study found that individuals with graduate degrees earned more than those with bachelor’s degrees. For instance, individuals with a master’s degree in business administration (MBA) had median annual earnings of $100,000, while those with just a bachelor’s degree in business had median earnings of $65,000. This goes back to my point of saying that the work you put in while your in college will reward in the end once it’s time to find a job. The amount of time you put into getting your degree and becoming a master at what you do is what will set you apart and give you that unique skillset that companies are looking for.
In conclusion, college major choice can significantly affect earning potential. Individuals who choose majors in high-demand fields, are more likely to make more money than those in low demand fields, due to the individuals in the high demand fields having a more unique skillset. When looking for a job companies see you as an investment and more times than not the people with the degree in the high demand are to be hired since they are a better fit for the job. In this paper I think that I showcased reason as to why the major you pick in college does more times than not directly correlate to how much money you will make in your life.