Updated Estimates of the Average Financial Return on Master's Degree Programs in the United States

In this study, we provide updated estimates of the private and social financial return on enrolling in a master's degree program in the United States. In addition to returns for all fields of study, we show estimated returns to enrolling in master's degree programs in business and educatio...

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Bibliographic Details
Published in:Journal of education finance 2017-06, Vol.43 (1), p.21-44
Main Authors: Gándara, Denisa, Toutkoushian, Robert K.
Format: Article
Language:English
Subjects:
Age Differences
Business Administration Education
Education
Educational programs
Enrollment
Finance
Graduation
Income
Intellectual Disciplines
Masters degrees
Masters Programs
Outcomes of Education
Probability
Return on investment
School Entrance Age
Student Costs
Student Financial Aid
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Summary:In this study, we provide updated estimates of the private and social financial return on enrolling in a master's degree program in the United States. In addition to returns for all fields of study, we show estimated returns to enrolling in master's degree programs in business and education, specifically. We also conduct a sensitivity analysis to show how our findings are affected by several key assumptions in the model such as the assumed growth rates of earnings, the direct and indirect costs faced by students, and the age at which a person enrolls in a master's program. Our findings indicate that, on average, students who enroll in master's degree programs receive positive and substantial financial returns, with variation by age, probability of completion, and financing characteristics.
ISSN:0098-9495
1944-6470
1944-6470
DOI:10.1353/jef.2017.a678326