What is the Value of a Ph.D.?

How much is a Ph.D. worth to you? For some, the road to a Ph.D. is filled with intangible rewards, such as gaining knowledge and becoming known as an academic expert in their field. Others pursue their Ph.D. with the belief that an advanced degree will bring them professional prestige and a large salary. Whatever your motivation, you may be surprised to find out that a Ph.D. doesn’t necessarily guarantee you the big bucks, nor does it guarantee a prestigious career in academia, although it certainly increases your odds. The road to a Ph.D. is a long and arduous one. You should be sure you want to travel it before embarking on it.

Earning power
If you pursue a Ph.D., there’s something to be said about being able to measure its value in earning power. The fact is, on average, people with graduate degrees, especially professional degrees, make more money than people without them. In March, 2005, the U.S. Census Bureau reinforced the value of any level of college education: Full-time workers between the ages of 25 and 34 without a high school diploma earned an average salary of $27,445. Those with their high school diplomas were earning an average $32,592. If they had a bachelor’s, they were hiked up to an average annual salary around $50,700, and if they had gone so far as a graduate degree, they were earning around $57,712 a year.

Obviously, a graduate degree is likely to pay off in the working world, but what about that doctorate? The Census Bureau reported that workers between 25 and 34 with a doctorate working full time earned an average of $65,937 a year. Those with professional degrees were at the top of the heap, averaging $87, 732. Prior to the age of 25, workers overall were earning slightly less, but workers who hit their stride in their 30s, 40s, and 50s…well, their salaries just kept going up, with doctorate-level workers between 45 and 54 earning close to $100,000 a year.

The catch…
While these salaries look good, these are the salaries of people who are actually employed, so if you have a Ph.D., thousands of dollars of debt in student loans, and can’t find a decent job, a high salary is just pie in the sky. Many a student, Ph.D. in hand, has struggled to gain tenure or get started in jobs where they are considered overqualified, only to have doors shut in their face time and time again. In recent years, there was even a surplus in Ph.D. graduates in relation to job openings. Fortunately, that trend appears to be turning the tide.

The Bureau of Labor Statistics currently predicts that the job outlook for postsecondary teachers (a job commonly sought by Ph.D. graduates) should be much brighter than it has been in recent years. Employment in that area is expected to grow by almost 40 percent by 2012, whereas overall employment is expected to grow by only 15 percent! So, if you’re just starting down the track to a Ph.D. and hope to take root in the world of academia, your timing may be just right!

Last, but not least
Regardless of your salary aspirations, before you go after a doctorate degree, ask yourself very honestly what it is you’re seeking. In the end, it may be priceless if it opens the door to a subject or career you love…but it’s also a serious commitment. Make sure you’re ready to handle it.

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