Graduate education is the fastest-growing segment of US higher education. While undergraduate enrollment has increased by 30% over the past two decades, graduate enrollment increased by more than 45% over the same period.
As policymakers aim their sights more squarely on graduate program quality and accountability, they may be surprised at the relatively limited evidence base on the earnings gains for graduate degrees. Of course, students may enroll in graduate education for reasons beyond earnings. Still, the vast majority of prospective graduate students cite earnings potential as an important or very important consideration in their decision, and these outcomes are particularly important for understanding the implications of rising graduate student debt.
Using two decades of administrative data from Ohio’s public colleges and universities, the authors of this Third Way brief compare master’s degree completers’ earnings before and after graduate school. On average, earning a master’s degree increases earnings by 14%, though returns vary by field. Women see higher returns than men, and White graduates outpace Black peers. Graduating into a recession reduces earnings gains, but despite these differences, returns remain positive across all groups and time periods, reinforcing the value of master’s degrees from public institutions.