Re:Don't try to dodge the recession with grad school
by eisenkr on Tuesday February 03, 2009 @12:33PM
(#464286)
Although the article claims that delaying employment with grad school doesn't make you money, there's some good empirical evidence that a delay can create beneficial cohort effects which pay huge dividends over a career.
If you get a job during a nasty economic time, you'll probably end up saddled with a lower salary. This salary then becomes the foundation on which all future raises are calculated (e.g., a 5% raise).
If, however, you got a job during a robust economic time, you'll start with a higher salary and a higher foundation on which all future raises are calculated.
The difference between waiting a year for an extra bump in salary can pay off a lot because the difference will be compounded over the years. This creates an economically rational incentive to avoid the workforce by entering grad school for a little while (no PhD programs) or by finally giving the startup thing a try.
If you get a job during a nasty economic time, you'll probably end up saddled with a lower salary. This salary then becomes the foundation on which all future raises are calculated (e.g., a 5% raise).
If, however, you got a job during a robust economic time, you'll start with a higher salary and a higher foundation on which all future raises are calculated.
The difference between waiting a year for an extra bump in salary can pay off a lot because the difference will be compounded over the years. This creates an economically rational incentive to avoid the workforce by entering grad school for a little while (no PhD programs) or by finally giving the startup thing a try.