Every semester in my "Principles" class, I perform a cost-benefit analysis to show that despite the big increase in tuition over the past few decades, the financial benefit of having a college degree relative to a high-school diploma still outweighs the cost, and not by a little. However, I also make a point that the financial benefit depends crucially on what you choose to major in. A recent article by CBS News confirms this and lists the Majors whose holders are expected to earn the highest salary from the beginning to the mid-point of their career. The two conclusions I find most interesting are these:
1. Economics (grouped with Mathematics) is the only social science Major that makes it to the group of top-earning majors. This is not surprising to those of us who teach the subject. As one researcher comments,
2. The highest-paying Majors are all in STEM fields, which explains a big part of the gender pay-gap since these fields are dominated by men. Of course, the issue remains whether women choose voluntarily to pursue careers in lower-paying fields like the arts or education or whether they are steered in this direction by societal gender norms. However, this is a different and more difficult question to answer.
1. Economics (grouped with Mathematics) is the only social science Major that makes it to the group of top-earning majors. This is not surprising to those of us who teach the subject. As one researcher comments,
When we ask employers about skills that are lacking in new college grads, we thought it would be technical skills. But what we hear from employers is often the new hires right out of college are lacking things that you think everyone in college should graduate with, which are communication skills and critical thinking.The issues that economists deal with often have costs and benefits (there is no such thing as a free lunch, right?) and are the focus of political debate. Hence, a training in economics certainly encourages and cultivates critical thinking. Elaborating these costs and benefits in a way that other people can understand also hones communication skills. As most economic theories are formulated as mathematical models, a training in economics also cultivates abstract and analytical thinking and sharpens the students' quantitative skills. These are all qualities that employers value.
2. The highest-paying Majors are all in STEM fields, which explains a big part of the gender pay-gap since these fields are dominated by men. Of course, the issue remains whether women choose voluntarily to pursue careers in lower-paying fields like the arts or education or whether they are steered in this direction by societal gender norms. However, this is a different and more difficult question to answer.
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