tag:blogger.com,1999:blog-8781383461061929571.post8387256238718049868..comments2024-03-14T09:08:19.035-04:00Comments on OR in an OB World: The Value of Knowing the Value of Your DegreePaul A. Rubinhttp://www.blogger.com/profile/05801891157261357482noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8781383461061929571.post-68772727613682884312013-03-29T06:38:19.891-04:002013-03-29T06:38:19.891-04:00-The governor of Florida has recently suggested lo...-The governor of Florida has recently suggested lower tuitions for STEM majors at state-run colleges and universities. Student loans have probably led to a profusion of unmarketable non-STEM graduates, but it isn't clear if many of those students would switch to STEM under the Governor's plan. A vastly lower interest rate or the possibility of loan forgiveness for STEM majors might be a compromise, but that would probably require changes at the federal level. <br /><br />-I would expect that Ivy League and "Public Ivy" graduates would make more money, all else being equal, but those make up a relatively small proportion of the total. <br /><br />-The problem of oversupply might disappear if there were more factors at work that would compel employers to hire people who were not a perfect fit and then train them in-house.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8781383461061929571.post-69314082639261998232013-03-26T17:31:35.724-04:002013-03-26T17:31:35.724-04:00On your first point, the higher the median salary,...On your first point, the higher the median salary, the shorter the median payback time, assuming equal educational costs. Schools are starting to charge premium tuition, lab fees, computing fees etc. for some majors. I don't know that they add up enough to make a meaningful difference in payback time, but it's worth considering.<br /><br />You're right that the student's post-graduate plans are his/her business, not the college's, but my point was that post-graduate salary data for major X at school A might not be directly comparable to data for the same major at school B.<br /><br />I agree with your last point. There's a concern about whether the salaries drop precipitously while students are enrolled, though. You might sign up for a major in great demand at the start of your freshman year but not by the time you're close to graduating. That's not a reason to suppress demand or salary data; it's just a caveat to the consumer of the data.Paul A. Rubinhttps://www.blogger.com/profile/05801891157261357482noreply@blogger.comtag:blogger.com,1999:blog-8781383461061929571.post-4175737614281060592013-03-24T17:05:20.979-04:002013-03-24T17:05:20.979-04:00A few comments:
While ranges of salaries would be...A few comments:<br /><br />While ranges of salaries would be helpful, the median salary for a particular degree tells us much of what we need to know. If sociology majors earn a median starting salary of $30K, accounting majors of $50K and engineering majors of $70K, then it is quite obvious that engineers and accountants will have an easier time paying off student loans, buying homes, investing for retirement, etc. $20K extra x 40 years = $800,000 (ignoring interest, inflation, dividends.) This is not rocket science.<br /><br />The flaw of averages is itself flawed. There is no reason to think that a drunk will even attempt to walk down the center line, for example. He'll probably get hit before he even gets there.<br /><br />For the most part, it really isn't a college's concern what any particular student's professional school goals are. The student does not need to get permission from the college to apply to or be accepted by med schools. It is the med schools which decide which applicants to accept, based on grades, MCAT scores, personal statements and the college-level courses that the *med schools* consider to be requirements. Theoretically, a student can major in basket weaving and he might still be accepted if he does well on the admissions requirements of the med schools. <br /><br />It is best left to the student to decide if the high pressure world of finance is to his liking. That some college graduates might not turn out to have the temperament needed for finance is no reason to suppress the information about salaries. Even some low-paying careers can be quite stressful. <br /><br />If students flock to what are perceived to be higher paying fields, so be it. Salaries might drop and an equilibrium will be reached. Or salaries might NOT drop. You don't know.Anonymousnoreply@blogger.com