Future income depends more on what you study than where you study

A new comprehensive analysis of graduate income from tax data, of course, reveals that choices play a more important role than the institutions students are studying in determining future salaries. I am.

Investigation resultAnalyzes 2018 income data for a cohort of students who graduated in 2007 and 2016, published on November 5th.

Education Minister Alan Tudge said the data would provide future students with additional information for choosing their learning courses.

“The new report will help students make informed decisions about income results for 1, 5, and 9 years after graduation, as well as a breakdown by 73 research disciplines and institutions,” Tudge said. Stated. “This is a very useful report for students to plan their future.”

Ten years after graduation, the median income of medical students was the highest at $ 169,000, followed by engineering ($ 112,900) and dentistry ($ 104,800).

The study also revised the median income to better reflect the differences in graduate income across study regions.

Using the revised numbers, graduates studying medicine earned a median annual income of $ 191,800 and widened the income gap from dentistry, the next highest-income research area, by $ 119,800. Other high-paying courses include engineering, law, and pharmacies.

The study area with the lowest median income after 10 years was $ 60,200 in creative art. Other courses that have led to low returns include social work, tourism, veterinary medicine and social sciences.

“The field of study has the greatest impact on alumni’s income 10 years after graduation,” the report author writes. “Even in research fields with high initial income, income tends to increase in the long run.”

Epoch Times Photo
A dateless image of a medical professional performing neurosurgery at a Greenslopes private hospital operated by Ramsey Healthcare in Brisbane, Australia. (AAP image / Ramsey Healthcare)

Ten years after graduation, the selected research areas accounted for 9.2% of income fluctuations and research institutions accounted for 2%. Graduates of the University of New South Wales have been found to earn the highest income after 10 years.

The study also found that there was little difference in income between men and women after graduation.

But ten years later, female graduates are about $ 26,700 less than male graduates, with gender having the next biggest impact on results.

“Female graduates are much more likely than male graduates to move between different labor market states after graduation and over time, for example, between full-time and part-time employment. “The report said. “This contributes to greater fluctuations in the income of female graduates in the long run.”

We also found that the choice to do more full-time research had little impact on income 10 years from now, explaining 0.2% of income fluctuations.

Factors that explain 0% of income volatility after 10 years include the choice of full-time or part-time studies, whether students enrolled in college through ATAR or other channels, and indigenous status. ..

By tracking the global financial crisis (GFC) graduate cohort, the study found that it took time for graduates to settle in the labor market soon after graduation.

“The experience of the postgraduate cohort after GFC shows that demand-side factors play an influential role in shaping graduate income,” the authors conclude. “However, the different choices that male and female graduates make as they move between different labor market states highlight the role of supply factors in influencing graduate income in the long run. I will. “

Rebecca Chu