Tracking Salary Trends by Education Level and Degree
By Jonas Johnson, Ph.D.
Senior Researcher
Our latest analysis of salary growth focuses on salary change by
education over the past 15 years. Similar to our previous white
paper, “Analysis of Salary Growth Over Time,” this study uses
underlying data from ERI’s Salary Assessor and is broken down
into two separate analyses: overall growth by education level and
growth by degree. The first analysis examining overall growth
by level covers 1,462 occupations whose salaries were consistently tracked from 1998 to 2012. The second analysis examining
growth by degree was limited to science, technology, engineering, and mathematics (STEM) and health care degrees because
they tend to have clearer career progressions than liberal arts
degrees. This analysis was conducted using 360 occupations
that were examined on a quarterly basis between 1998 and 2012.
These analyses are not intended as a recommendation or endorsement for a field of study or specific academic degree. Rather, they are meant to further the discussion of salary trends and
compensation research.
We should note: This study looks at the degrees that feed into
all occupations tracked by ERI. While accountants or petroleum
engineers may be expected to have degrees in their field, some
occupations are not as clear cut. Degree assignments were set
by multiple independent raters using a proprietary educational
taxonomy designed to capture the feeder degrees for each occupation researched. Furthermore, educational levels were determined through independent job analyses conducted using the
Position Analysis Questionnaire (PAQ).
EDUCATION LEVEL
Occupations requiring the lowest level of education have shown
the slowest level of growth over the past 15 years, with an average
annual growth rate of 2.36%. The average annual salary growth
appears to slowly increase as educational requirements increase
(see Figure 1).
The largest exception to this trend is the educational level for occupations requiring doctoral degrees (MD or PhD). Occupations
requiring doctoral degrees were the second slowest growing educational group behind those with the lowest level of education, with
an average annual growth rate of 2.52%.
The fastest growing educational group was that requiring a nontechnical undergraduate degree, with a growth rate of 3.35%. This
group was followed closely by occupations requiring masters’ degrees, with an annual growth rate of 3.33%.
However, while the salary growth of occupations requiring doctorates has been slower than occupations requiring lower levels of
education, a different picture emerges when the mean dollar increase is considered. The mean salary for the occupations requiring doctorates was $206,021 for 2012, whereas the mean salary
for occupations requiring the lowest level of education was $30,951
for 2012. Because of this difference in salary, an average increase
of 2.52% resulted in an average annual dollar increase of $4,001
for holders of doctorates, whereas the 2.36% increase for the lowest level of education resulted in an annual dollar increase of $611.
Figure 1. Average Annual Growth 1998-2012 by Education Level
Percentage
Dollar Amount
Doctoral Degree - MD or PhD
2.52%$4,001
Master’s Degree
3.33%$3,109
Bachelor’s Degree - Technical
3.11%$2,142
Bachelor’s Degree - Non Technical
3.35%$2,877
Associates or Technical Degree
3.07%$1,509
1 Year College or Apprenticeship
2.80%$995
High School - Technical
2.82%$1,060
High School - Non Technical
2.66%$920
Elementary Education
2.71%$821
Limited Literacy
2.60%$663
2.36%
Aurally or Orally Literate
$611
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(800) 627-3697 | [email protected] | www.erieri.com
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Salary Trends by Education Level & Degree
SALARY GROWTH BY DEGREE
The salaries of some occupations have grown faster than others over the past 15 years, and it
may be that some degrees are more frequently tied to faster growing occupations than others. For
example, it may be that occupations that require a specific degree have grown at a faster rate than
occupations requiring different degrees. Naturally, many other factors contribute to the strength of
a degree progression aside from growth. Actual salary also plays a major part in the examination of
growth. Annual growth of 3% is different for a degree which leads to occupations that earn $30,000
versus a degree which leads to occupations that earn $150,000. Because of this, we also present
data for the 2012 average salary and the raw growth dollar amount for each degree (see Figure 2).
These occupations do not exist in a vacuum. It may be easier to get a job with one degree over
another. To address this difference between occupations, the unemployment rate for individuals
Figure 2. Highest Average Annual Salary Growth 1998-2012 by STEM and Health Care Degrees
KEY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Title
Psychology
(MS)
Psychology
(MS)
Psychology
(MS)
Psychology
(MS)
Agricultural Sciences
Sciences (BS)
(BS)
Agricultural
Agricultural
Sciences(BS)
(BS)
Agricultural
Sciences
Accounting
(BS)
Accounting
(BS)
Accounting
(BS)
Accounting
(BS)
Natural
Resources
Conservation
(BS)
Natural
Resources
(BS)
Natural
ResourcesConservation
Conservation (BS)
Natural
Resources
Conservation
(BS)
Natural
Resources
Conservation
(BS)
Mathematics
(BS)
Mathematics
(BS)
Mathematics
(BS)
Mathematics
(BS)
Mathematics (BS)
Chemistry
&
Related
Chemistry
Related(MS)
(PhD)
Chemistry
&&
Related
(MS)
Chemistry
&
Related
(MS)
Sanitation
Engineering
(BS)
Sanitation
Engineering(BS)
(MS)
Sanitation
Engineering
Sanitation
Engineering
Sanitation Engineering (BS)
(BS)
Hardware
Design
Engineering
Hardware
Design
Engineering
(MS)
Hardware Design
Design Engineering
Engineering (BS)
(MS)
Hardware
(MS)
Computer
Sciences
(BS)
Computer
Sciences(BS)
(BS)
Computer
Sciences
Computer Sciences (BS)
Chemistry
(BS)
Chemistry
(BS)
Chemistry
(BS)
Chemistry
(BS)
2012 Salary
Raw Growth
Avg % Growth
2011 Unemployment
$75,067.80
$35,013.60
3.11%
3.40%
$46,655.29
$21,553.95
3.08%
4.20%
$67,907.45
$31,237.23
3.07%
4.80%
$55,510.75
$25,460.75
3.06%
5.30%
$67,024.67
$28,785.00
2.86%
5.10%
$99,237.17
$42,420.17
2.85%
2.00%
$101,599.00
$41,686.14
2.74%
4.50%
$110,863.00
$44,834.50
2.70%
5.00%
$82,250.89
$32,317.69
2.62%
5.60%
$49,443.77
$19,406.02
2.62%
4.90%
FASTEST GROWING DEGREES
Occupations requiring a Master of
Science (MS) in Psychology had
the highest percentage growth over
the past 15 years, with a growth
rate of 3.11%. Of note, psychology MS degree occupations grew
faster than their doctoral (PhD)
counterparts, which registered an
annual growth rate of 2.08%. However, despite the slower growth for
the PhD degree, average salaries
increased by similar amounts over
the past 15 years. Specifically, the
PhD gained $37,196, and the MS
gained $35,013 from 1998 to 2012.
This is due to the higher salary that
a PhD in Psychology demands.
Of note, individuals holding a MS
in Psychology saw their salaries
grow at a higher rate than the average annual inflation rate of 2.44%,
whereas individuals with a PhD in
Psychology saw salary growth at a
lower rate than inflation.
20.00%
15.00%
010
2011 2012
010 2011
2011
2012
010
2011
Percentage Growth
10.00%
5.00%
0.00%
-5.00%
-10.00%
1998
1999
2000
2001
2002
2003
2004
2005
Year
2006
2007
2008
2009
2010
2011
holding each degree is also considered (Carnevale, Cheah, & Strohl,
2013). Additionally, the growth of
salaries over time is impacted by
inflation. According to the Consumer Price Index released by the
U.S. Bureau of Labor Statistics,
the average annual inflation rate
from 1998 to 2012 was 2.44%.
This means that occupations with
lower growth rates over the past 15
years have not maintained spending power, while those with growth
rates over this average have increased spending power.
2012
Agricultural sciences and natural resources conservation both
grew at similar rates of 3.08%
and 3.06%, respectively. However, agricultural science occupations earned $8,855 less than
occupations stemming from natural resources conservation major
in 2012. Both degrees grew at a
higher rate than inflation, meaning
that occupations stemming from
these degrees earn proportionately more than in 1998.
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Copyright© 2013 ERI Economic Research Institute
Salary Trends by Education Level & Degree
Occupations requiring a Bachelor of Science (BS) in Accounting grew at an annualized rate of
3.07%, and grew by $31,237 over the past 15 years. Mathematics occupations grew at a rate of
2.86%, and saw a nominal salary increase of $28,785. However, because accounting occupations were paid less in 1998 than mathematics occupations, both degrees yielded similar salaries
in 2012: $67,907 and $67,024, respectively.
Both the chemistry MS and BS occupations were found in the top 10 degrees, with annual percentage growth levels of 2.85% and 2.62%, respectively. This is the only degree progression
that landed an undergraduate and graduate degree in the top 10. However, despite the similar
level of growth, the MS degree occupations saw gains more than double their BS counterparts
($42,420 versus $19,406). Furthermore, the lower level of unemployment among chemistry MS
holders indicates a stronger market for this degree (2.00% versus 4.90%).
Figure 3. Lowest Average Annual Salary Growth 1998-2012 by STEM and Health Care Degrees
KEY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Title
Psychology
(MS)
Psychology
(MS)
Psychology
(MS)
Systems Analysis-Design
(BS)
Agricultural Sciences
Sciences (BS)
(BS)
Agricultural
Physical Sciences
& Related
Agricultural
Sciences
(BS) (BS)
Accounting
(BS)
Accounting
(BS)
Physics & (BS)
Related (MS)
Accounting
Natural
Resources
Conservation
(BS)
Natural
Resources
Conservation
Biological
& Life Sciences
(BS) (BS)
Natural
Resources
Conservation
(BS)
Natural
Resources
Conservation
(BS)
Mathematics
(BS)
Mathematics
(BS)
Power
Systems
Engineering
(BS)
Mathematics
(BS)
Mathematics (BS)
Chemistry
&
(MS)
Environmental
Sciences
Chemistry
& Related
Related
(MS)(BS)
Chemistry
&
Related
(MS)
Sanitation
Engineering
(BS)
Health Sciences
(MS) (BS)
Sanitation
Engineering
Sanitation
Engineering
Sanitation Engineering (BS)
(BS)
Mechanical
Engineering
(BS) (MS)
Hardware
Design
Engineering
Hardware Design
Design Engineering
Engineering
(MS)
Hardware
(MS)
Computer
Sciences
(BS)
Psychology
(PhD) (BS)
Computer
Sciences
Computer Sciences (BS)
Physician(BS)
(MD)
Chemistry
Chemistry
(BS)
Chemistry
(BS)
2012 Salary
Raw Growth
Avg % Growth
2011 Unemployment
$94,806.67
$19,479.17
1.37%
5.10%
$58,602.00
$13,827.50
1.57%
5.40%
$139,664.00
$35,668.00
1.70%
2.80%
$76,805.00
$22,512.67
1.95%
5.60%
$84,138.00
$24,879.50
1.97%
5.20%
$54,633.00
$16,524.75
2.02%
4.20%
$142,350.67
$44,102.33
2.07%
2.90%
$63,867.08
$19,918.58
2.08%
3.80%
$119,049.33
$37,196.00
2.08%
3.40%
$235,284.45
$74,221.55
2.10%
1.90%
20.00%
15.00%
10
2011 2012
10 2011
2011
2012
10
2011
Percentage Growth
10.00%
5.00%
0.00%
-5.00%
-10.00%
Sanitation engineering occupations grew at a rate of 2.74%.
With a nominal salary growth of
$41,686 and average 2012 salary
of $101,599, this degree group had
both a relatively high salary and salary growth, which has fared better
than inflation.
The two final degrees in the top
10 are both related to computing.
Computer science (BS) and hardware design engineering (MS) both
grew at a rate that was higher than
inflation, with growth of 2.62% and
2.70%, respectively.
Hardware
design engineering degree occupations had the highest salary
among the group that grew faster
than inflation, with an average 2012
salary of $110,863. Occupations
stemming from a BS in Computer
Sciences yielded the highest salary for a bachelor’s degree, which
also grew faster than inflation.
SLOWEST GROWING DEGREES
The lowest percentage growth over
the past 15 years was from occupations that require a bachelor’s
degree in systems analysis and
design, with an annual growth rate
of 1.37% (see Figure 3). This rate
of growth is over one percent below
the annual rate of inflation in the
same period. However, occupations requiring this degree are more
highly paid than other degrees on
this list and, as a result, the nominal salary growth was $19,479 between 1998 and 2012. This nominal growth is actually $5,651 higher
than the growth for the next degree
in this list: physical sciences (BS).
Occupations requiring this degree
grew at a rate of 1.57% and had
one of the lower average salaries
for 2012. Indeed, because of the
relatively low average salary and
percentage growth, this degree saw
the lowest overall nominal growth
over the past 15 years.
-15.00%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year
3
Copyright© 2013 ERI Economic Research Institute
Salary Trends by Education Level & Degree
Related to the physical sciences BS, occupations requiring a master’s degree in physics grew with an average rate of 1.70%. However, the 2012 average salary of $139,664 meant that, even though
occupations requiring this degree grew slower than inflation, they
still grew by $35,668 over the past 15 years. Another hard science
field was also found in the slowest growing list. Biological and life
sciences (BS) degree progressions grew at a rate of 1.95%. Of
note for this degree, the unemployment rate of 5.60% was tied for
the highest in this analysis.
Interestingly, some degrees related to health care were found
amongst the slowest growing occupations. Occupations which
required the degree of Doctor of Medicine (MD) grew at a rate
of 2.19%. MDs are still highly paid, with an average salary of
$235,284. They also gained the largest amount in this analysis:
$74,221. However, MDs have seen increases that are 0.34% below inflation. Taken over 15 years, this means that MDs are paid
5.10% less in 2012 than in 1998. In addition to MD occupations,
those that require a master’s in health sciences were also found in
the slowest growing occupations, with a growth rate of 2.07%.
The next group is those requiring bachelors’ degrees in specific
engineering disciplines. Specifically, power systems engineering
(1.97%) and mechanical engineering (2.08%) were among the 10
slowest growing degrees by occupation. Rates of unemployment
are of note for these degrees. Mechanical engineering majors with
a BS have lower rates of unemployment (3.80%) than those with
power systems engineering BS degrees (5.20%). Despite the
slower growth and higher unemployment, occupations requiring
power systems engineering degrees do have a higher average
salary ($84,138) than those with mechanical engineering degrees
($63,867).
Environmental sciences grew at a rate of 2.02%. This result is
somewhat surprising considering that occupations requiring natural
resources conservation degrees were the second fastest growing.
While degrees in environmental sciences and natural resources
conservation are similar, there is a difference in focus between the
two. Specifically, the environmental sciences career path requires
greater emphasis on biology, chemistry, and mathematics, whereas
the natural resources conservation career path has a greater emphasis on the management of natural resources. This distinction
may explain the variation in growth amongst occupations requiring
these degrees.
CONCLUSION
A point made clear by this study is that salaries do not grow at consistent rates across time. Some years will show significant growth,
while others may show slow growth or contractions. The clearest
example of this is found with the MD degree. Specifically, 1998
showed a rate of growth which was four times higher than the next
closest year, and 2002 showed a contraction of 3.70%.
There are some surprising differences in the degree groups found
in the fastest and slowest growing occupational groups. The fastest growing occupation, psychology (3.11%), grew at a rate which
was more than double the growth rate of occupations requiring a
BS in Systems Analysis (1.37%). When this disparity of growth is
considered in conjunction with the rate of inflation, one consistency
stands out: the top 10 degrees all grew faster than inflation, whereas the bottom 10 all grew at a slower rate than inflation. This provides support for the idea that, in an examination of salary trends
by education and degree, it is critical to examine not just growth,
but also nominal salary change, inflation, and unemployment rate.
References:
Carnevale, A.P., Cheah, B. & Strohl, J. (2013). Hard Times: Not all College Degrees are Created Equal. [White Paper].
Retrieved from: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/unemployment.final.update1.pdf
U.S. Bureau of Labor Statistics (2013). Consumer Price Index. Retrieved May 3, 2013, from: http://www.bls.gov/cpi/
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