A new U.S. study is challenging a widely held assumption: that certain degrees are “safe” from automation and therefore financially worthwhile.
Research shows that some graduate programs, particularly in fields like psychology and social work, can actually generate negative returns on investment once the full cost of education is taken into account.
For students and professionals globally, including those in Vietnam considering overseas education, the findings highlight the growing importance of evaluating degrees based on long term economic outcomes, not just perceived job security.
The Key Finding: Some Degrees Cost More Than They Earn
The study analyzed data from around 800,000 students over three decades, examining 121 graduate programs.
It calculated returns by factoring in:
- Tuition and associated costs
- Lost income during years of study
- Lifetime earnings after graduation
The results:
- Psychology degrees show negative returns of around 8%
- Clinical psychology also underperforms at roughly minus 5%
- Social work and education related degrees also fall into negative territory
This means graduates in these fields may earn less over their lifetime compared to if they had not pursued the degree.
Why “Safe” Fields Still Underperform
These fields are often considered resistant to automation due to their human centered nature. However, financial outcomes depend on more than job security.
Key factors include:
- Lower salary ceilings
- High tuition costs
- Long study durations
- Limited wage growth over time
The study emphasizes that earning potential, not just employability, determines whether a degree pays off.
Not All Degrees Are Equal
Despite these findings, graduate education overall still delivers value.
- Average earnings increase: around 17%
- Law degrees: 41% return
- MBA programs: 13% return
- Medical degrees: income nearly triples
- Pharmacy degrees: income increases by over two thirds
These results show a wide gap between fields, with professional and technical degrees offering significantly stronger financial outcomes.
What This Means for International Students
For students planning to study abroad, especially in the U.S., the implications are clear:
- Degree choice matters as much as university reputation
- “Passion fields” may carry financial trade offs
- ROI analysis should be part of decision making
This is particularly relevant for students taking on debt or self funding expensive graduate programs.
The Bigger Picture: Education in the Age of AI
The study adds nuance to the global conversation about AI and the future of work.
While automation risk is real, avoiding AI disruption does not automatically guarantee financial success. Instead, the value of a degree depends on:
- Market demand
- Wage potential
- Cost efficiency
Bottom Line
Not all graduate degrees are created equal and some may not pay off financially, even if they are considered “future proof.”
For students, the key question is no longer just “Will this job exist?” but “Will this degree be worth it?”
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Source: Vietnam Insider