While master’s degrees are increasingly popular — with 40% of U.S. bachelor’s degree holders now having postgraduate credentials — new research reveals many don’t deliver improved earnings despite soaring costs.
Analysis from the U.S. and UK indicates that about 40% of U.S. master’s programs fail to provide positive financial returns, with some even leading to financial losses for graduates, as captured in a new Economist story. Similarly, British master’s graduates earn no more than bachelor’s holders by age 35 after accounting for background factors. This is particularly significant because U.S. students now average $50,000 in postgraduate debt, triple the real cost since 2000, while UK fees have risen 70% since 2011 to $12,000 annually.
Returns vary dramatically by field: computer science and engineering show strong gains, while humanities degrees often lead to reduced earnings compared to bachelor’s-only peers. Women are more likely than men to see earnings increases, succeeding in 14 out of 31 subject areas compared to men’s six. Choice of institution impacts outcomes, though data shows no strong correlation between program cost and graduate earnings.
