Engineering Graduates Earned a Return on Their Investment In Education of 21%

A recent report from the New York Fed looks at the economic benefits of college. While there has been a great deal of talk about the “bubble” in higher education the Fed finds college is very wise economically for most people. They do find a larger portion of people that are not getting a great return on their investment in higher education.

That could well indicate students studying certain majors and perhaps some people with less stellar academic skills would be better off economically skipping college.

Do the Benefits of College Still Outweigh the Costs?

an analysis of the economic returns to college since the 1970s demonstrates that the benefits of both a bachelor’s degree and an associate’s degree still tend to outweigh the costs, with both degrees earning a return of about 15 percent over the past decade. The return has remained high in spite of rising tuition and falling earnings because the wages of those without a college degree have also been falling, keeping the college wage premium near an all-time high while reducing the opportunity cost of going to school.

It is hard to beat a 15% return. Of course averages hide variation within the data.

The return to engineer graduates was the greatest of all disciplines examined. Engineering graduates earned a return on their investment of 21%. The next highest were math and computers (18%); health (18%); and business (17%). Even the lowest returns are quite good: education (9%), leisure and hospitality (11%), agriculture (11%) and liberal arts (12%).

These returns look at graduates without post-graduate degrees (in order to find the value of just the undergraduate degree). As those with higher degrees benefit even more but the return on graduate degrees is not part of this study and they didn’t want to confuses the benefits of the post graduate degree with the bachelors degree.

As the article points out those fields with the top returns are more challenging and likely those students are more capable on average so a portion of the return may be due to the higher capabilities of the students (not just to the major they selected). They don’t mention it but engineering also has a higher drop out rate – not all students that would chose to major in engineering are able to do so.

This is one more study showing what we have blog about many times before: science and engineering careers are very economically rewarding. The engineering job market remains strong across many fields; many companies are turning to engineering job placement firms to find specialized staff. While the engineers do voice frustration at various aspects of their jobs the strong market provides significant advantages to an engineering career. As I have said before the reason to chose a career is because that is the work you love, but in choosing between several possible careers it may be sensible to consider the likely economic results.

The study even examines the return for graduates that are continually underemployed (I am not really sure how they get this data, but anyway…) the return for engineers in this situation is still 17% (it is 12% across all majors).

Related: Earnings by College Major, Engineers and Scientists at the Top (2013) – Engineering Graduates Continue to Reign Supreme (2013) – Career Prospect for Engineers Continues to Look Positive (2011)

Engineering Graduates Earned a Return on Their Investment In Education of 21%

A recent report from the New York Fed looks at the economic benefits of college. While there has been a great deal of talk about the “bubble” in higher education the Fed finds college is very wise economically for most people. They do find a larger portion of people that are not getting a great return on their investment in higher education.

That could well indicate students studying certain majors and perhaps some people with less stellar academic skills would be better off economically skipping college.

Do the Benefits of College Still Outweigh the Costs?

an analysis of the economic returns to college since the 1970s demonstrates that the benefits of both a bachelor’s degree and an associate’s degree still tend to outweigh the costs, with both degrees earning a return of about 15 percent over the past decade. The return has remained high in spite of rising tuition and falling earnings because the wages of those without a college degree have also been falling, keeping the college wage premium near an all-time high while reducing the opportunity cost of going to school.

It is hard to beat a 15% return. Of course averages hide variation within the data.

The return to engineer graduates was the greatest of all disciplines examined. Engineering graduates earned a return on their investment of 21%. The next highest were math and computers (18%); health (18%); and business (17%). Even the lowest returns are quite good: education (9%), leisure and hospitality (11%), agriculture (11%) and liberal arts (12%).

These returns look at graduates without post-graduate degrees (in order to find the value of just the undergraduate degree). As those with higher degrees benefit even more but the return on graduate degrees is not part of this study and they didn’t want to confuses the benefits of the post graduate degree with the bachelors degree.

As the article points out those fields with the top returns are more challenging and likely those students are more capable on average so a portion of the return may be due to the higher capabilities of the students (not just to the major they selected). They don’t mention it but engineering also has a higher drop out rate – not all students that would chose to major in engineering are able to do so.

This is one more study showing what we have blog about many times before: science and engineering careers are very economically rewarding. The engineering job market remains strong across many fields; many companies are turning to engineering job placement firms to find specialized staff. While the engineers do voice frustration at various aspects of their jobs the strong market provides significant advantages to an engineering career. As I have said before the reason to chose a career is because that is the work you love, but in choosing between several possible careers it may be sensible to consider the likely economic results.

The study even examines the return for graduates that are continually underemployed (I am not really sure how they get this data, but anyway…) the return for engineers in this situation is still 17% (it is 12% across all majors).

Engineering Graduates Earned a Return on Their Investment In Education of 21%

A recent report from the New York Fed looks at the economic benefits of college. While there has been a great deal of talk about the “bubble” in higher education the Fed finds college is very wise economically for most people. They do find a larger portion of people that are not getting a great return on their investment in higher education.

That could well indicate students studying certain majors and perhaps some people with less stellar academic skills would be better off economically skipping college.

Do the Benefits of College Still Outweigh the Costs?

an analysis of the economic returns to college since the 1970s demonstrates that the benefits of both a bachelor’s degree and an associate’s degree still tend to outweigh the costs, with both degrees earning a return of about 15 percent over the past decade. The return has remained high in spite of rising tuition and falling earnings because the wages of those without a college degree have also been falling, keeping the college wage premium near an all-time high while reducing the opportunity cost of going to school.

It is hard to beat a 15% return. Of course averages hide variation within the data.

The return to engineer graduates was the greatest of all disciplines examined. Engineering graduates earned a return on their investment of 21%. The next highest were math and computers (18%); health (18%); and business (17%). Even the lowest returns are quite good: education (9%), leisure and hospitality (11%), agriculture (11%) and liberal arts (12%).

These returns look at graduates without post-graduate degrees (in order to find the value of just the undergraduate degree). As those with higher degrees benefit even more but the return on graduate degrees is not part of this study and they didn’t want to confuses the benefits of the post graduate degree with the bachelors degree.

As the article points out those fields with the top returns are more challenging and likely those students are more capable on average so a portion of the return may be due to the higher capabilities of the students (not just to the major they selected). They don’t mention it but engineering also has a higher drop out rate – not all students that would chose to major in engineering are able to do so.

This is one more study showing what we have blog about many times before: science and engineering careers are very economically rewarding. The engineering job market remains strong across many fields; many companies are turning to engineering job placement firms to find specialized staff. While the engineers do voice frustration at various aspects of their jobs the strong market provides significant advantages to an engineering career. As I have said before the reason to chose a career is because that is the work you love, but in choosing between several possible careers it may be sensible to consider the likely economic results.

The study even examines the return for graduates that are continually underemployed (I am not really sure how they get this data, but anyway…) the return for engineers in this situation is still 17% (it is 12% across all majors).

Gravity and the Scientific Method

One of the topics I return to repeatedly is the scientific method – theories must to tested. As evidence mounts that new ideas do a good job of explaining theories they become more accepted. But they continue to be tested in new ways as the ideas are extended and ramification are explored. And science progress means that old conventions can be overturned as new evidence is gathered.

Science is not about current beliefs. Science is about seeking knowledge. If the search for knowledge leads to evidence that old ideas were wrong those ideas are overturned. Since people are involved that process isn’t as clean as it sounds above. People get comfortable with beliefs. They build careers on expanding those beliefs. Most are uncomfortable when they are challenged and don’t accept new ideas even when the evidence mounts. But some do accept the new ideas. Some challenge the new ideas by running experiments. And some of those prove the new ideas faulty. Some become convinced of the new ideas as the results of their experiments make the new ideas seem more sensible (instead of getting the results they expected).

Building the body of scientific knowledge is not nearly as clean and simple as most people think. It isn’t a simple process, what is the underlying truth can be debatable. But the beauty of the scientific process is how it helps us overcome our biases and provide evidence to support the theories we support. The scientific method (combined with our human involvement) doesn’t mean new ideas are accepted easily but it does mean new ideas compete on the basis of evidence not just the power of those that hold the beliefs.

Is gravity not actually a force? Forcing theory to meet experiments
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How To Make Your Own Pesticide with Ingredients from Your Kitchen

Video by the Singapore National Park Board, on creating your own pesticide with just water, dish-washing liquid, chili, garlic and cooking oil.

Related: Pigs Instead of Pesticides – Automatic Cat Feeder – Rethinking the Food Production System – Build Your Own Tabletop Interactive Multi-touch Computer – Science Toys You Can Make With Your Kids – Pesticide Laced Fertiliser Ruins Gardens – Living in Singapore

Engineering Again Dominates The Highest Paying College Degree Programs

As usual most of the highest paying undergraduate college degrees in the USA are engineering. Based on data from payscale, all of the top 10 highest paying fields are in engineering. The highest non-engineering fields are applied mathematics and computer science. Petroleum Engineering salaries have exploded over the last few years to $93,000 for a starting median salary, more than $30,000 above the next highest paying degree.

Mid-career median salaries follow the same tendency for engineering degrees, though in this case, 3 of the top 10 salaries (15 years into a career) are for those with non-engineering degrees: applied mathematics, physics and economics.

Highest Paid Undergrad College Degrees
Degree Starting Median Salary Mid-Career Median Salary 2009 starting salary
Petroleum Engineering $93,000 $157,000
Chemical Engineering $64,800 $108,000 $65,700
Nuclear Engineering $63,900 $104,000
Computer Engineering $61,200 $99,500 $61,700
Electrical Engineering $60,800 $104,000 $60,200
Aerospace Engineering $59,400 $108,000 $59,600
Material Science and Engineering $59,400 $93,600
Industrial Engineering $58,200 $97,400 $57,100
Mechanical Engineering $58,300 $97,400 $58,900
Software Engineering $56,700 $91,300
Applied Mathematics $56,400 $101,000
Computer Science $56,200 $97,700 $56,400

Related: PayScale Survey Shows Engineering Degree Results in the Highest Pay (2009) – Engineering Majors Hold 8 of Top 10 Highest Paid Majors (2010) – Engineering Graduates Get Top Salary Offers in 2006 – Shortage of Petroleum Engineers (2006) – 10 Jobs That Provide a Great Return on Investment

More degrees are shown in the following table, but this table doesn’t include all the degree; it just shows a sample of the rest of the degrees.
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Google Invests $168 million in Largest Solar Tower Power Project

Google is investing in a new solar tower power project located in California that will generate 392 gross MW of clean, solar energy. That’s the equivalent of taking more than 90,000 cars off the road. Google has now invested $250 million in clean energy.

Investing in the world’s largest solar power tower plant

works by using a field of mirrors, called heliostats, to concentrate the sun’s rays onto a solar receiver on top of a tower. The solar receiver generates steam, which then spins a traditional turbine and generator to make electricity. Power towers are very efficient because all those mirrors focus a tremendous amount of solar energy onto a small area to produce steam at high pressure and temperature (up to 1000 degrees F).
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Several large solar projects are in the works in the sunny Southwest (and around the globe), but Ivanpah will be the first solar power tower system of this scale. The Ivanpah Power Tower will be approximately 450 feet tall and will use 173,000 heliostats, each with two mirrors.

The Department of energy is also providing financing for this project. The project is 10 times larger than the largest solar photovoltaic project in California.

Related: Google Investing Huge Sums in Renewable Energy and is Hiring – Google.org Invests $10 million in Geothermal Energy – Google’s Energy Interests – Molten Salt Solar Reactor Approved by California – Solar Tower Power Generation – Finding Huge Sources of Energy Without Increasing Carbon Dioxide Output

Appropriate Technology: Washing Clothes by Machine Instead by Hand

Hang Rosling provides great presentations exploring economics and human well being. I agree with his point that we should be thankful for economic and engineering progress that has freed us from menial tasks and allowed us to spend our time in higher value ways.

We need to remember (as he shows) there are many in the world that still do not enjoy these advances. For example, a majority of the world must hand wash their clothes. Engineers should continue to focus on the mass of humanity that needs fairly simple solutions.

He is also right that we need to find solutions to the extremely heavy use of fossil fuels by the rich countries. If the rich countries don’t reduce the pollution there will be great problems. And if the costs of clean energy are not decreased (which they should do) fast enough (which is the question), those that start to be able to afford the rich lifestyle, will add to the dangers we face economically and environmentally of continuing the unsustainable energy footprint the rich countries have been making.

Related: Washing Machine Uses 90% Less Water – Clean Clothes Without Soap – Hans Rosling on Global Population Growth – Automatic Dog Washing Machine