Top 10 States Where It Pays to Have a Graduate Degree

Sometimes, it seems like the internet exists to convince you that graduate school is a waste of time and money. There are hundreds of blogs and articles exhausting the issue, explaining which reasons for attending grad school are inappropriate and which majors are the least effective at increasing your wealth and well-being.

Yet, the truth is this: Graduate-level degrees do increase your salary. Nearly across the board, grad school grads earn more than their peers who claim only bachelor’s degrees (and under). However, the difference between your current salary and your potential post–graduate degree salary depends on a number of factors, including your field, your employer — and, most surprisingly, your place of living.

 

Why Location Matters for Income

 
It shouldn’t be an astonishing fact that location affects income. Even within the same company, two employees in the same position might earn different wages due to their geographic area. When companies calculate salaries, they consider a heaping handful of factors, the most influential among them including:

• Local salary competition

• Local cost of living

• Local unemployment and employment data

• Inflation

These factors vary from state to state — sometimes from city to city — because they concern local resources, such as workers, homes, food, and other essentials that are typically produced and consumed in the area. The Balassa-Samuelson Effect explains why different geographic locations see differences in some prices but not others. All you need to know is this: You can earn a much higher salary working in some places — but you might pay more to live there, too.

Still, the salary hike and the cost of living increase aren’t always equitable. Plus, places that offer greater salaries might also offer greater opportunity to advance. It’s difficult to deny that higher salaries are beneficial, so gravitating toward regions with notoriously higher pay is wise.

 

10 Best States for Grad School Grads

 
If you spend your time earning an online MBA — which likely costs the same no matter where you live or work — you should be interested in getting the most buck for your degree. To that end, you should be primarily interested in securing employment in one of the following 10 states:

10) Alaska

As one of the least populated states, Alaska’s salaries aren’t high to begin with — but neither is its cost of living. Grad degree–holders earn median salaries of $73,871, which is about $19,221 higher than those with undergrad degrees.

9) North Dakota

Recently, North Dakota saw a massive employment boom as the oil fields drew millions of unemployed workers to available jobs. Grad degrees net a median salary of $62, 675 — 38.95 percent higher than a bachelor’s degree.

8) Michigan

Michigan boasts the third-lowest cost of living in the nation, which is notable considering its good treatment of graduate degrees: $69,099 in median salary, which is about $18,744 higher than undergraduate degrees.

7) Maryland

While it has the third-highest median pay for grad degrees, Maryland ranks low on this list for its relatively high cost of living. Grad degree–holders can earn $84,003, which is an astonishing $21,567 higher than undergrads.

6) New Jersey

Commanding some of the highest salaries in the nation, grad degree–holders in New Jersey do rather well: median pay of $85,789, which is $22,483 higher than bachelor’s degree–holders.

5) Idaho

The Gem state respects grad school degrees, offering them the second-highest pay raise in the country. At 44.03 percent higher than lower-level college grads, a median salary of $60,922 — and a low, low cost of living — is what grad degree-holders moving to Idaho can expect.

4) Washington, D.C.

By living in the nation’s capital, grad degrees can demand the second-highest dollar-for-dollar salary increase as well as the highest median salary of anywhere in the U.S.: $88,431, which is $23,945 higher than bachelor’s degree–holders.

3) Utah

By percentage, Utah offers the greatest increase to median salary thanks to a graduate degree. Grad degrees can take in $67,575, which is 44.85 percent higher than bachelor’s degrees.

2) Virginia

Near D.C. and Maryland, Virginia offers competitively high salaries to grad degrees. The median salary for an advanced degree is $81,401, which is $23,914 more than for a bachelor’s degree.

1) California

The cost of living is high in the Golden State, but they treat their grad degree–holders well. The median income for earning a graduate degree is $82,299, which is 41.88 percent higher than bachelor’s degrees net.

 
 
Do you have a grad degree? If so, what is it in and where did you get it? If not, are you considering getting one?