by Audrey Howitt

Created on: November 09, 2009

In this economy, even those with higher levels of education are not being hired. So, the question posed is a relevant one. There are several different ways to look at this question and each is relevant to answering the question.

From a purely functional standpoint, one can ask whether the cost of obtaining a master's degree will be outweighed by the increased earning power created by the degree. Depending upon your age, the cost of tuition, and your particular field of study, the answer may well be that obtaining the degree will allow for a far greater earning capacity. Thus, it may well be worth pursuing from a monetary standpoint.

For instance, the bureau of labor statistics through 2008 indicate that median weekly earnings for a person who holds a master's degree were $1,228 while median weekly earnings for those holding a bachelor's degree were $978. [i] Over the course of one year, this can be an increase of about $15,000 per year.

What the statistics do not discuss is the relative cost of obtaining that income differential. The cost of education is skyrocketing. The cost of a master's degree at a private university can run close to $100,000. The cost of a master's degree at a state school can run between $10,000 to approximately $20,000.

If you have a number of years to work still, the financial benefit can be worthwhile, provided you do not incur substantial student loans in the process. Student loans add another level to the cost/benefit analysis and can prove to be quite burdensome.

If you are employed in the industry that you are seeking to obtain your master's degree in, some or all of the cost may be recouped as a tax benefit. Tax laws are always in flux and I would suggest that you seek advice on this matter from a tax consultant before embarking on an educational path. In many industries, a bachelor's degree will allow you to obtain an entry-level position. Often a master's degree is necessary to obtain higher levels of employment within a given industry or corporation.

In addition, obtaining a master's degree is a good way to switch careers. A master's degree can be completed in one to two years. A second bachelor's degree in a different field takes approximately four years at a comparable cost per year. Thus, a master's degree can be a cost effective way to learn about an entirely different field.

Finally, if your goal is to teach in academia, a master's degree is a fundamental necessity and in fact, a doctorate degree is required by many colleges and universities as a prerequisite for employment as a teacher.

So, in determining whether to pursue a master's degree, it is wise to engage in an investigative and evaluative process. Try to determine what you want out of the process. Is it an increase in salary? Is it job growth? Is it a career change? Then look to the monetary costs and benefits. And remember, it is a joy to learn and grow as a person.

[i] http://www.bls.gov/emp/emptab7.htm

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