Unpacking the Earning Potential of a Graduate Degree

In today’s competitive job market, pursuing higher education is more than a path to personal development: It’s a strategic investment in achieving higher earning potential. Understanding how a graduate degree can influence your financial trajectory is essential for making informed decisions about your education.

Does graduate school increase earning potential?

In today’s competitive job market, higher education levels often correlate with higher salaries and better career prospects.

“In general, over the course of your career, those with a graduate degree have the potential to make more money and have higher earnings over their lifetime,” says Diane Ciarletta, the director of the Career Design team at Northeastern University.

According to the U.S. Bureau of Labor Statistics (BLS), individuals with a master’s degree earn, on average, approximately 20% more than those with only a bachelor’s degree. This increase in earnings can translate into substantial financial gains over the course of a career.

“While the investment in a graduate degree can be substantial, the long-term gains often outweigh the initial costs,” Ciarletta says. “Over the course of a career, the increased earning potential can significantly surpass the cost of tuition.”

The median weekly earnings for full-time workers with a master’s degree, for example, were $1,737 in 2023, compared to $1,493 for those with a bachelor’s degree​. The long-term financial benefits of a graduate degree therefore far outweigh the initial investment in tuition and related costs.

To fully realize the earning potential of a graduate degree, it’s important to consider several key factors that can influence your earning potential. Understanding these factors can help you select the right graduate school to ensure you get the highest return on investment.

4 factors that can influence earning potential

1. Industry trends

Earning potential isn’t just determined by your level of education; it’s also influenced by industry trends.

“Different fields offer different salary scales post-graduation,” Ciarletta says. “And this is heavily influenced by industry demand and trends.”

For instance, technology and healthcare are currently among the highest-paying industries due to high demand for skilled professionals. According to BLS, the median annual wage for computer and information technology occupations was $104,420 in 2023, significantly higher than the median annual wage for all occupations, which was $48,060.

Fields such as data science, cybersecurity, and healthcare administration have also seen substantial salary growth as organizations increasingly rely on advanced technologies and specialized expertise to drive innovation.

Staying informed about these industry trends and adapting to market needs is essential for maximizing earning potential. One of the best ways to do this is attending a graduate school that addresses these trends.

“Northeastern has done a great job with this,” Ciarletta says. “The Master’s in Data Science and Master’s in Data Analytics programs don’t just help professionals get roles like data analysts and data scientists. This education touches on skills nearly every professional needs today.”

2. Work experience

Your work experience plays a crucial role in determining your earning potential. Employers often value the skills and knowledge gained from hands-on experience, and individuals with relevant work experience tend to command higher salaries.

“Your previous work experience can significantly impact your salary after obtaining a graduate degree,” Ciarletta says. “Those with relevant experience often see higher salary increments as they bring valuable skills and knowledge to their new roles.”

If you lack substantial work experience, graduate programs that offer experiential learning opportunities can be particularly valuable.

Experiential learning, such as internships, co-op programs, and practical projects, allows students to gain hands-on experience in their field while still in school. This approach not only enhances their academic learning but also provides real-world skills that can be immediately applied in the workplace.

“Northeastern’s focus on experiential learning ensures that students graduate with not just theoretical knowledge but practical experience that makes them valuable assets to employers from day one,” Ciarletta adds.

By enrolling in these programs, you can improve the quality of your work experience, making you a candidate for higher-paying roles.

3. Geographic location

Geographic location is a critical factor that influences earning potential across various professions. Where you work can significantly impact your salary due to differences in cost of living, regional economic health, and the concentration of certain industries in specific areas.

“Geographic location plays a crucial role in earning potential,” Ciarletta says. “For example, tech jobs in major cities like San Francisco or New York typically offer higher salaries compared to the same roles in smaller cities.”

However, the rise in remote work has added a new dimension to your earning potential. It has allowed employees to live in lower-cost areas and earn a salary based on higher-cost locations. Some companies have responded by adjusting remote workers’ salaries based on where they live, rather than where the company is based.

Graduate school can play a pivotal role in preparing you for the opportunities of remote work. For instance, programs that offer online courses, use digital communication tools, and encourage the use of virtual project management equip students with the skills necessary to thrive in remote work.

“Our programs not only focus on the technical skills required in various industries but also on how to effectively work and lead in remote settings,” Ciarletta says. “This prepares our graduates to excel whether they are working from a city or a small town.”

4. Professional networking

Building a strong professional network is a critical strategy for maximizing the earning potential of a graduate degree. Networking can open doors to new opportunities, provide valuable industry insights, and help you stay connected with peers in the field.

“Jobs come from relationships,” Ciarletta says. “So alumni networks are really important sources of connection that might help you along your professional journey.”

Graduate programs, particularly those at institutions like Northeastern, offer unique networking opportunities that connect students with a diverse and influential network of peers, professors, and alumni.

“You’re getting a community at Northeastern,” Ciarletta adds. “You get access to this amazing community of alumni and you know faculty.”

This proactive approach to networking can significantly contribute to your success in the digital age, opening doors to new opportunities and helping you earn higher wages.

Maximize your graduate investment

Choosing the right graduate program is essential for maximizing your investment in higher education.

Consider researching the curriculum, faculty expertise, and available resources to ensure the program will help you excel in your chosen field. However, one of the most effective ways to ensure higher earning potential after graduate school is to consider the success of alumni.

“Many of our alumni have successfully transitioned to higher roles and new industries after completing their graduate degrees at Northeastern,” Ciarletta says. “Their stories are a testament to the long-term benefits and career stability that advanced education can offer.”