Story image

STEM degrees set students up for serious salaries

13 Apr 2017
Twitter
Facebook

A new paper by Motu Economic and Public Policy Research Trust has found that students with a degree in the STEM fields may earn more, but tend to be cemented into their careers.

Senior fellow at Motu David Maré says the paper analyses the career paths of both STEM and non-STEM graduates in the six years after graduation.

In the careers of high-STEM graduates, meaning they hold a bachelor degree or above, they found a higher pay but a tendency to stay in one place says Maré.

“STEM graduates with a Bachelor's degree or above change jobs less than other graduate groups, but are more likely to end up in high paying industries, high paying firms within industries, and larger firms”

Compared to high achieving graduates in non-STEM disciplines, who start at a lower wage but have more freedom to move around during their careers. These graduates can end up in high paying field such as accountancy and law, says Maré.

When looking at graduates as a whole, the paper found there is a relatively high starting wage but the high-STEM graduates tended to have a higher pay growth of 49% over the six years.

Graduates of a lower level, below a bachelor degree, experience significantly lower earning in both STEM and non-STEM. Sitting around $30,300 annually. But, even in this category, STEM graduates progress faster says Maré.

The study found that New Zealand graduates are very mobile. With many venturing out overseas in the sixth year after graduation.

Maré says there are some gaps in the research, related to that overseas period and studying abroad.

“Unfortunately our analysis can’t observe students who train overseas, the career outcomes of New Zealand graduates who travel overseas, or graduates who are self-employed or work in the informal sector,” said Dr Maré. “And because we’re looking at productivity variation within industries, our estimates may not reflect the impact that the changing supply of skilled workers has on the growth of innovative and knowledge-intensive sectors.”

As the emphasis on STEM subjects is becoming more prevalent in the education sector it could mean a lot of highly paid graduates moving into the workforce. Though, with tighter scope of prospective careers in STEM disciplines, it poses a big choice for students: the salary, or the options.

Story image
13 Aug
Amazon Alexa can now teach English and te reo Māori
“Learning works best when it’s interactive, so users can listen to the words in te reo and English and test their knowledge and pronunciation through the glossary and quiz."More
Story image
21 Aug
Get ready to take the red pill: The Matrix is coming back
“As you can see, we've had our eye on you for some time now, Mr. Anderson..."More
Story image
Today
Hands-on review: The AirPods 2 with wireless charging
While they're still not great for noise blocking, they are stylish earbuds that allow you to answer phone calls quickly and hands free, listen to music on your phone and communicate with Siri, all while fitting in a compact wireless charging case that's great for travelling.  More
Story image
14 Aug
Five ways smart TVs are at risk of cyber attacks
Android TV is the most popular operating system for TVs – but it’s also vulnerable to many malware strains that affect other Android devices, because it shares the same base architecture.More
Story image
Today
Kiwibank reestablishes commitment to local market, despite drop in profit
“Kiwibank has a strong purpose and that is to make Kiwis better off. Our founding vision was for New Zealand to have a real and credible alternative to the offshore-owned banks, that remains at the heart of who we are and why we exist."More
Story image
12 Aug
Samsung and Microsoft partner to deliver unified experience
As mobile-first users make up a larger share of the workforce, the demand for more seamless connectivity will only increase.More