Archive for July 20th, 2011

Is an arts degree a good financial investment? #2

Earlier in the month I looked at median weekly income for arts graduates, all graduates, and people with certificate III/IV qualifications, as reported in the 2006 census (note the various data caveats in the first post). I found that arts graduates had similar income profiles to certificate III/IV holders.

The figure below looks at males with income around the 75th percentile for their qualification in 2006, and tells a different story. In their 20s, earnings are fairly similar between the three groups (in the rather crude way I have had to do this, the ‘all graduates’ aged 25-29 just missed out on the next income bracket, and if the test had been ‘all non-arts graduates’ may have made it).

By their 30s, arts graduates in this part of the income distribution are clearly pulling away from the certificate III/IV people. But they are not gaining on all graduates. Indeed, the gap is likely to be larger than shown at the median, because graduates at the 75th percentile are ticking the highest census income category of $2,000 a week or more. We can’t tell from this data source how much they are earning, other than that it must be over $500 a week more than an arts graduate in the same relative position.