Is a Master's degree financially worthwhile?
The number of Master's students has highly increased in recent years. An important reason seems to be the increasing career opportunities. But is a master's degree worthwhile from a financial point of view?
Apr 28, 2021
The number of Master's students has highly increased in recent years. An important reason seems to be the improved career opportunities that can be achieved with a master's degree. In some professions, even a master's degree is required. In addition, in some companies, you can increase the likelihood of an early leadership position through a master's degree. But is the Master's degree worthwhile from a financial point of view?
Basically, the choice for a Master's degree depends on many factors. In addition to the additional reputation, career and salary prospects, personal priorities or one's own goals in particular play an important role in the choice of a master's degree. Whether such a degree is really necessary or whether the Bachelor's degree is sufficient, can therefore not be answered in general.
There are also very different answers to the question of whether a Master's degree is financially worthwhile. Basically, this depends very much on the choice of career, the specialty, the industry, the size of the company, the location or the negotiation skills. However, an analysis of the Internet platform Gehalt.de tries to find an answer to this question (see chart). The analysis is based on over 700,000 salary records and uses the aggregated annual salaries of the entire working life. It shows the median, i.e. the wage threshold at which the higher and lower earners are divided into two halves. Accordingly, Bachelor graduates earn about €40,500 annually when starting their careers. Master's graduates, on the other hand, start their career later and initially earn around €48,400. With increasing experience, this difference continues to grow. Looking at the cumulative income over the lifetime, a master's degree is worthwhile from the age of 40. If you look at the lifetime income at the end of your career, Master's graduates earn about €300,000 more than Bachelor's graduates.
The EMBM study can even increase this effect! In addition to the fundamental salary increase due to a Master's degree, EMBM graduates also benefit from two additional years of professional experience that conventional Master's graduates cannot prove. Although we cannot provide a blanket answer, the tuition fees of the EMBM program are very likely to pay off for you.
If you would like to discuss your individual situation again, please do not hesitate to contact us. We are happy to answer any questions that are still open.