ivy league - CAREERS Ivy Leaguers' Big Edge: Starting Pay...

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CAREERS Ivy Leaguers' Big Edge: Starting Pay By SARAH E. NEEDLEMAN July 31, 2008 Where people go to college can make a big difference in starting pay, and that difference is largely sustained into midcareer, according to a large study of global compensation. In the yearlong effort, PayScale Inc., an online provider of global compensation data, surveyed 1.2 million bachelor's degree graduates with a minimum of 10 years of work experience (with a median of 15.5 years). The subjects hailed from more than 300 U.S. schools ranging from state institutions to the Ivy League, and their incomes show that the subject you major in can have little to do with your long-term earning power. PayScale excluded survey respondents who reported having advanced degrees, including M.B.A.s, M.D.s and J.D.s. MORE COMPARISONS Search for your school, career or major: Degrees That Pay You Back Salaries for Colleges by Type Salaries by Region Even though graduates from all types of schools increase their earnings throughout their careers, their incomes grow at almost the same rate, according to the survey. For instance, the median starting salary for Ivy Leaguers is 32% higher than that of liberal-arts college graduates -- and at 10 or more years into graduates' working lives, the spread is 34%, according to the survey. One reason why Ivy Leaguers outpace their peers may be that they tend to choose roles where they're either managing or providing advice, says David Wise, a senior consultant at Hay Group Inc., a global management- consulting firm based in Philadelphia. By contrast, state-school graduates gravitate toward individual contributor and support roles. "Ivy Leaguers probably position themselves better for job opportunities that provide them with significant upside," says Mr. Wise, adding that this is the first survey he's seen that correlates school choice to a point later in a career. CAST YOUR VOTE Do you think where you went to college has impacted your salary? Vote in the Question of the Day. Also, more Ivy League graduates go into finance roles than graduates of other schools, and employers pay a premium for them, says Peter Cappelli, a professor of management and director of the Center for Human Resources at the Wharton School of the University of Pennsylvania. "Dartmouth kids get paid more for the same job than kids from Rutgers are [doing]," he says. Which school pays off the most? According to the survey, graduates of Dartmouth College, an Ivy League college, earn the highest median salary -- $134,000. Of all Ivy League graduates surveyed, those from Columbia earn the lowest midcareer median salary -- $107,000. Meanwhile, the highest-paid liberal-arts-school graduates, from Bucknell University, earn slightly more -- $110,000.
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Mr. Wise called the data thought-provoking. "These results, to some extent, confirm suspicions that many people have about the importance of a person's college choice in giving them better pay opportunities down the line," says Mr. Wise. "What we still don't know is whether or not it's the training or education the school
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This note was uploaded on 02/19/2011 for the course AGEC 217 taught by Professor Deboer during the Fall '08 term at Purdue University-West Lafayette.

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ivy league - CAREERS Ivy Leaguers' Big Edge: Starting Pay...

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