Some college majors offer ‘more shelter from economic storms than others’

by Grace

Picking the “right” college major shields graduates from some of the bad luck of graduating during a recession.

… Those who major in subjects that command higher salaries, like engineering and finance, increase their earnings advantage when they graduate into a recession. And those who major in subjects that lead to lower-paying jobs, like philosophy and music, are even more disadvantaged than in normal economic times.

A philosophy major takes a harder hit than a finance major during a recession.

Take finance majors. In normal economic times, they earn 24 percent more than the average college major when they are one year out of college. But in a recession, they earn 32 percent more than the average. At the other end of the earnings spectrum, religion and philosophy majors earn 42 percent less than the average major their first year out of college, and 55 percent less during a recession.

But the latest recession hit all graduates more than previous ones did.

In the Great Recession, though, the benefits to high-earning majors were muted, according to the most recent data collected by the Yale economists Lisa Kahn, Joseph Altonji and Jamin Speer. They were less sheltered because the recession affected the economy so broadly, Ms. Kahn said.

Should this news affect the selection of a college major?  Yes.

… yet another variable for students to keep in mind as they weigh which career to pursue.

Related:  “Recent college graduates suffering worst unemployment rates in 50 years” (Cost of College)

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Claire Cain Miller, “A College Major Matters Even More in a Recession”, New York Times, June 20, 2014.

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