How Much Does College Major or School Size Influence Earnings?
There’s a Wall Street Journal chart circulating this week. Engineering and computer science pay more than English and Communications. There are no surprises there.
But as the college applications season shifts into higher gear, and the economy continues to quiver does size of school matter for long term earning potential? According to an analysis by Knowledge @ Wharton out today, the answer may be a qualified yes.
It quotes a study by Till Marco Von Wachter, a Columbia University economics professor who studied Canadian college graduates who entered the job market in the two decades from 1976-1995. His research showed those who graduated during a recession had a substantial initial loss of earnings, around 10% from an average downturn. The loss persisted for some years, with the effect fading out after a decade.
Perhaps most surprising was that the earning pattern differed not only by major but by type of school the graduate attended. “We ranked people based on their expected labor market success,” von Wachter said. “Those who graduated from better, bigger schools and those who had more math-intensive majors, such as engineering or hard sciences, did the best. They took a small hit but recovered after a few years. The people who majored in social sciences were in the middle [of the spectrum]. But those who graduated from smaller schools and who majored in humanities did not fare as well. They lost access to a career trajectory and it never came back. There seems to be a group who are permanently stuck at lower level, lower paying jobs. If they don’t get access to good jobs in a critical time period, say ages 20 to 30, it appears that, on average, they never do.”
Tags: college graduates, college major, communications, computer science, earnings potential, engineering, English, recession
The Organization Man, “The Sequel”
William H. Whyte Jr.’s The Organization Man was a seminal work of the 1950’s .The book detailed what Mr. Whyte believed was the sacrifice of a generation in exchange for finding and keeping jobs that promised security. That generation came of age in the “Great Depression.”
Are we on track for The Organization Man, “The Sequel?” In their Global Workforce Study released today Towers Watson, a human capital firm, showed a workforce weary of the fallout from the recession. And, perhaps not surprisingly, there is a renewed interest in job security. When respondents were asked about the factors most important in a preferred work situation, 86% chose a secure and stable position. Fewer, 74%, chose substantially higher levels of compensation.
Has the pendulum swung away from the idea Daniel H. Pink, author of the recently released Drive, first popularized in Free Agent Nation? Said Laura Sejen, a leader of the company’s Talent and Rewards business, “Where once employers fretted over a ‘war for talent,’ now they must plan for a workforce that appears ready to settle in for years—perhaps even decades.”,
What will this mean for those joining the workforce in coming years, and folks who are delaying retirement? Share your thoughts!
Tags: Daniel H. Pink, employee attitudes, free agent nation, job security, organization man, recession, war for talent, William H. Whyte Jr., workplace trends
