Supply and Demand of PhDs

When we think of PhD, we think of the highest intellectual, the title that stands at the top of the academia ladder. Having one instantly gains you more respect, as your title upgrades from Mr. or Ms. to Dr. After approximately four or five long years of grueling research into a very specialized field of study, it is time to find a job, one that promises a lot more $ than those with just simply a Master's degree or a BS. But does it really pay off?


The supply of PhDs has steadily increased since the 80's, into the present day, as suggested by the graph shown above. Between 1970 and 2000, the amount of doctorates awarded each year grew by about 40 percent. Meanwhile, the demand of the PhD job market is one that fluctuates up and down. Due to the fact that a PhD is extremely specialized in one field and that it takes many years to earn one, it is hard to predict what the job market will want in a few years. Professors may tell their students their predictions of up and coming doctoral studies in the job market, and it might not turn out to materialize. Or, global events / new technology may suddenly change the demand in the market, which can have a huge impact on PhDs especially, as their field of study is so narrow.

In current times, the supply of PhDs exceeds the demand, and a newly minted doctor of science hoping for a full-time job has a 25% chance of being disappointed. Not only is it hard to get a PhD (as you are not paid during that time), but there is no guarantee you will find a job that pays for much higher. One blogger writes, "A PhD may offer no financial benefit over a master's degree. It can even reduce earnings." Of course, getting a PhD will almost always be better, so long as your chosen field of study doesn't drop in demand in the few years you are studying for the degree.

https://medium.economist.com/why-doing-a-phd-is-often-a-waste-of-time-349206f9addb

https://www.bls.gov/careeroutlook/2002/winter/art03.pdf


Comments

  1. AnonymousApril 21, 2019 at 12:02 AM

    This is a really relevant question in my life, although it has less to do with PhDs and more to do with masters. the question of whether one should pursue post-graduate degrees is definitely a question worth looking at. Although research proves that it can improve future income, it can be hard for people to find the value of paying expensive tuition for added years. However, as the market becomes more saturated with people who only have bachelor's degrees, it may eventually become necessary for people to obtain a master's in order to stand out and ensure they keep up with changing market demands.

    https://finishyourthesis.com/worth-getting-your-phd-degree/

    ReplyDelete
  2. AustinApril 22, 2019 at 8:38 PM

    I think this issues presented by your post is extremely relevant to our life, as we step into higher education we have to pay attention to what our education brings economically. Getting a PHD definitely isn't for everyone, and the opportunity cost of the PHD sometimes can be unworthy. It really is a gamble, scholars never know if they are able to benefit from their degrees.

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