Santa Clara University’s Leavey School of Business was ranked 4th in the country for earning potential of its business majors.
A recent study, conducted by Eric Eide of Brigham Young University and Michael Hilmer of San Diego State University, was published in the Wall Street Journal.
The study examined the cost-benefit of elite schools, finding that degrees in only certain fields from Prestigious colleges, such as business and social science afforded students high Salaries after graduation. Eide and Hilmer found that the median early career salary of Leavey School grads was $62,400, and that mid-career median pay was $124,000.
The team writes:
“The starkest earnings differences are for business majors, where graduates from the selective institutions earn 12% more on average than mid-tier graduates and 18% more than graduates from less-selective colleges… There are many possible explanations for the disparities. In business, more prestigious schools may offer better alumni networks and other connections with potential employers. In other fields of study, more prestigious schools may offer better peer connections, faculty, university resources and, at least in social science and the humanities, access to better graduate programs. Whatever the reason, parents and students may be justified in looking for a prestigious degree in these majors.”
In contrast, degrees from elite colleges in fields such as STEM didn’t yield higher salaries for students than those from more inexpensive institutions. The same was found to be true for engineering graduates’ salaries.
“The obvious, practical takeaway from all this is that families should really dig into the numbers. Because college is potentially one of the biggest investments a family will make, students and their parents should search out the information necessary to calculate the costs and expected future earnings associated with colleges and majors,” writes Hilmer and Eide.
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