Show Me the Money! Earnings by Field of Study and Education Level
Students pursuing a postsecondary education must make an important decision: what to study? The field a student chooses could be based on a combination of personal interest, ability to meet pre-requisite or entrance requirements, or costs. But what about another salient factor – future earnings?
The most recent Canadian Census data sheds useful light on labour market outcomes by level of educational attainment and cumulative earnings across fields of postsecondary study. It turns out that income – on average - can be linked to area of study. The data suggest that, for most people, it pays to head to school. But not all postsecondary credentials are created equal, at least when we look at the pattern of life-time earnings.
Much of the existing literature provides earnings information for graduates by broad field of study, generally concluding that those with qualifications in more applied disciplines, such as engineering and nursing, enjoy higher earnings than graduates of arts and humanities programs.[1] This picture holds true with the most recent Canadian data as well.
This blog uses the 2016 Census to compare mean annual earnings by field of study for bachelor’s and master’s degree graduates in Canada. Earnings are presented separately for 25 to 54-year-old men and women who worked full-year,[2] full-time[3] in 2015.[4],[5] Overall, top earnings go to those with at least a bachelor’s degree in business, engineering, mathematics/statistics, and health disciplines.
Men: Average annual employment income[6] and level of education
In Canada, men between 25 to 54 years who worked full-year, full-time in 2015 pocketed $94,360 on average if they had a bachelor’s degree.[7] Among this group, former business students earned the most ($106,500), followed by engineering ($103,317) and math grads ($100,828). Social science graduates[8] also brought in better than average incomes, at $98,050. At the other end of the spectrum, male bachelor’s degree holders who studied languages, fine and applied arts,[9] and library sciences ranked near the bottom.
|
Field of Study |
Annual Average Earnings, Bachelor’s Degree (Men) |
Annual Average Earnings, Master's Degree (Men) |
|
Agriculture |
$74,194 |
$79,442 |
|
Architecture |
$79,833 |
$84,441 |
|
Biological & biomedical sciences |
$80,430 |
$84,848 |
|
Business |
$106,540 |
$149,774 |
|
Communication, journalism |
$72,391 |
$77,064 |
|
Computer information sciences |
$89,476 |
$91,989 |
|
Education |
$74,859 |
$90,521 |
|
Engineering |
$103,317 |
$107,565 |
|
English language & literature |
$70,928 |
$75,957 |
|
French language |
$70,284 |
$64,283 |
|
Foreign languages, linguistics |
$63,373 |
$64,632 |
|
Gender, ethnic studies |
$67,324 |
$71,210 |
|
Health professions, nursing |
$83,173 |
$98,295 |
|
History |
$85,168 |
$87,174 |
|
Liberal arts |
$76,488 |
$80,253 |
|
Library science |
$52,822 |
$77,375 |
|
Mathematics & statistics |
$100,828 |
$97,754 |
|
Natural resources |
$87,055 |
$85,238 |
|
Philosophy & religious studies |
$72,219 |
$67,592 |
|
Physical sciences |
$94,139 |
$93,907 |
|
Psychology |
$79,373 |
$79,930 |
|
Public administration |
$71,774 |
$89,415 |
|
Social sciences |
$98,050 |
$98,319 |
|
Theology |
$58,225 |
$62,092 |
|
Visual & performing arts |
$57,455 |
$61,467 |
Women: Average annual employment income and level of education
On average, women with bachelor’s degrees brought in $68,759 in 2015. Female engineers pulled in top dollars, with average earnings of $82,309, while math graduates were second with $76,492. There is a notable difference between men and women in the relative ranking of bachelor’s level health/nursing graduates. Female health/nursing undergraduates earn the third highest incomes at $75,923, while this is the ninth-highest earning field of study for men. Annual earnings are also high for women with degrees in computer science and business -- over $73,000 in each case. Like men, female bachelor’s degree holders who studied fine arts, library science and gender studies reported among the lowest earnings.
Figure 3. Women, Bachelor’s graduates, ages 25 to 54, average annual employment income, Canada, 2015
Women who graduated from a master’s program scaled up their earnings by 17% - the same as men – on average earning $81,194. Female MBAs experienced a significant income bump, bringing in $101,578 – a 32% improvement over bachelor’s earnings. Engineering, nursing and math remained among the top-paying fields for women with master’s degrees. Earnings gains between female undergraduate and graduate degree holders are notable in library sciences (a rise in annual earnings of $29,602); public administration (master’s graduates earn $15,681 more); and education (up by $12,740).
Figure 4. Women, Master’s graduates, ages 25 to 54, average annual employment income, Canada, 2015
Table 2: Women, ages 25 to 54, annual average earnings, Bachelor’s and Master’s degrees, 2015
|
Field of Study |
Annual Average Earnings, Bachelor’s Degree (Women) |
Annual Average Earnings, Master’s Degree (Women) |
|
Agriculture |
$58,388 |
$67,361 |
|
Architecture |
$62,948 |
$70,294 |
|
Biological & biomedical sciences |
$65,293 |
$75,727 |
|
Business |
$73,233 |
$101,578 |
|
Communication, journalism |
$62,150 |
$70,073 |
|
Computer information sciences |
$73,633 |
$76,989 |
|
Education |
$66,423 |
$79,163 |
|
Engineering |
$82,309 |
$85,428 |
|
English language & literature |
$62,568 |
$60,919 |
|
French language |
$64,300 |
$66,221 |
|
Foreign languages, linguistics |
$57,358 |
$58,752 |
|
Gender, ethnic studies |
$58,660 |
$68,198 |
|
Health professions, nursing |
$75,723 |
$82,459 |
|
History |
$62,782 |
$70,022 |
|
Liberal arts |
$58,214 |
$58,056 |
|
Library science |
$45,055 |
$74,657 |
|
Mathematics & statistics |
$76,492 |
$82,043 |
|
Natural resources |
$66,651 |
$72,337 |
|
Philosophy & religious studies |
$56,894 |
$62,137 |
|
Physical sciences |
$71,455 |
$73,267 |
|
Psychology |
$61,976 |
$68,282 |
|
Public administration |
$62,182 |
$77,863 |
|
Social sciences |
$67,097 |
$74,666 |
|
Theology |
$46,623 |
$62,259 |
|
Visual & performing arts |
$50,366 |
$54,518 |
The Takeaway
The lesson here is that more education generally leads to greater employment earnings. For those who are deliberating about what to specialize in or considering furthering their education, it makes sense to pay at least some attention to earnings by field of study.
[1] See Ross Finnie’s work with the Education Policy Research Initiative, http://www.epri.ca/
See Marc Frenette’s work, https://www150.statcan.gc.ca/n1/pub/11f0019m/11f0019m2014359-eng.htm
[2] 49 to 52 weeks worked.
[3] At least 30 hours per week.
[4] Given the wide range of age ranges (which, according to Statistics Canada, is required to produce adequate sample sizes), the data is age-adjusted.
[5] This analysis does not examine differences in earnings between men and women; it only compares earnings across field of study for individuals of the same sex and level of completed education. Statistics Canada Census data does not include many of the key variables that have been associated with the gender wage gap. For more discussion of gender wage differentials, see my colleague Denise Mullen’s recent study, Women and Work: An Analysis of the Changing British Columbia Labour Market.
[6] Dental, medical, veterinary, pharmacy and law programs not included.
[7] In 2015 dollars.
[8] Statistics Canada defines social sciences as anthropology, archeology, economics, geography, environmental science, political science, psychology, sociology and social work.
[9] Fine arts, music, performing arts, visual graphics.