Is a Master’s Degree Really Worth It?

By: Dr. Deborah Tollefsen, Vice Provost & Dean of the UofM Graduate School

As questions about the value of higher education continue to intensify, one question emerges repeatedly—Is a master’s degree really worth it? The answer depends not only on economics but how you define “value.”

What the Research Says

Recent studies and data from institutions such as the U.S. Bureau of Labor Statistics (BLS), Georgetown University’s Center on Education and the Workforce, and the National Center for Education Statistics offer a fairly consistent picture: on average, individuals with a master’s degree earn more over their lifetimes than those with only a bachelor’s degree.

According to BLS data from 2024:

• The median weekly earnings for someone with a master’s degree are approximately $1,800, compared to $1,500 for those with a bachelor’s degree.
• The unemployment rate for master’s holders is also lower—2.0% versus 2.2%.

And research at the Center on Education and Workforce at Georgetown University reveals that:

• The average lifetime earnings for someone with a master’s degree are $2.3 million, while those with a bachelor’s earn around $1.9 million.

Here’s a snapshot:

Educational Attainment	Average Lifetime Earnings
High School Diploma	$1.1 million
Bachelor’s Degree	$1.9 million
Master’s Degree	$2.3 million
Doctorate and Professional Degree (e.g. JD)	$2.8 million

 

These numbers paint a compelling financial picture. However, as with all averages, they can obscure as much as they reveal. The return on investment (ROI) of a graduate degree varies significantly depending on:

• Field of study (e.g., engineering vs. education)
• Current role and industry
• Cost of the program
• Gender and race (the data here is shocking!)
• Opportunity cost of lost income during study
• Regional labor markets and economic conditions

So if you're asking whether a master's degree is financially worth it, the honest answer is: it depends. You’ll need to do your research—comparing programs, costs, and career trajectories in your specific field.

The University of Memphis offers its students, faculty, and staff access to a useful tool called STEPPINGBLOCKS. SteppingBlocks is an online career exploration platform. It provides a 20-question personality assessment, a career path explorer, an institutional outcomes explorer, and a tuition analyzer. 

Beyond ROI: A Broader Concept of Value

But what if we shifted the conversation? What if we moved from return on investment to return on experience?

A master’s degree is more than just a line on a résumé or a bump in pay. It’s an intensive period of skill development, intellectual exploration, and professional transformation.

Graduate education often provides:

• Specialized expertise that allows individuals to lead, innovate, and solve complex problems.
• Critical thinking and communication skills that serve in virtually every profession.
• Opportunities for mentorship, collaboration, and networking that can unlock unexpected doors.
• Access to communities of practice, professional associations, and lifelong learning pathways.

For some, a master’s degree is the bridge to a new career entirely—shifting from classroom teaching to administration, or from software development to AI ethics, for example. It may not offer an immediate raise but could position you for leadership, entrepreneurial ventures, or consulting opportunities.

And for many, perhaps most meaningfully, it’s an act of personal growth.

Learning as Flourishing

Education, especially at the graduate level, fosters intellectual confidence, curiosity, and a deeper understanding of the world. These outcomes are hard to quantify—and yet, they often shape a life’s direction more than salary figures ever could.

Education doesn’t just contribute to our earning power, it contributes to our capacity to live well—to think critically, to empathize, to act with integrity and vision. It offers a kind of flourishing that goes beyond material gain.

So, is a master’s degree worth it?

If you're only looking at the paycheck, the answer is: sometimes.

If you're looking at the person you become through the journey, the relationships you build, and the doors that open (some of which you didn’t even know were there)—then the answer is often a resounding yes.

Want to see what that transformation looks like in real time? Explore our Graduate Student Spotlights to see how UofM students are growing personally and professionally through their graduate studies

Bottom Line:
Do your research. Run the numbers. But also ask yourself deeper questions:

• What kind of career do I want?
• What kind of life am I building? 
• And who do I want to become?
• Because in the end, worth isn’t just measured in dollars—it's measured in possibility, purpose, and the person you grow to be.