Research shows going to grad school doesn't guarantee you'll earn more

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You may be better off adding to your resume than getting another degree. Flickr / COD Newsroom

The decision to pursue an advanced degree can be one of the trickiest career conundrums out there.

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After all, it isn't easy to ensure that that big outlay will eventually pay off in earnings.

But now, a new study from Georgetown University sheds light on whether that grad degree is really worth it — or a waste. The answer: It depends.

For one, the research found that across nearly every field, employees fresh out of graduate school actually earn less than employees with just a bachelor’s degree but with three years of experience under their belt.

So generally, if it's an immediate salary bump you're after, you may want to think less about the ivory towers of academia — and spend more time crafting your resume.

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But before you start ripping up that grad school app, consider this: on average, those with postgraduate degrees earn 23% to 55% more than those with just a bachelor's.

So in the long run, that extra degree can reap real rewards. Think of it as a tortoise-and-hare scenario: Work experience increases salary at a faster initial rate than education. But for the PhDs and Masters of the world, slow and steady tends to win the race, with gradual salary growth adding up over time.

Of course, a number of factors also come into play — namely, your field of concentration. Not surprisingly, those with degrees in disciplines like the physical sciences tend to see more dramatic bumps in pay than, say, MFAs.

As Anthony Carnevale, director of Georgetown's Center on Education and the Workforce put it to Bloomberg Business, "The reality is that with earnings, what really matters is what you study."

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Still on the fence about pursuing higher ed? Check out our Grad School Calculator — it can help you determine whether an advanced degree might be a good investment.

Read the original article on LearnVest. Copyright 2015. Follow LearnVest on Twitter.
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