MADISON, Wisconsin, April 9, 2024 – The Center for Research on the Wisconsin Economy (CROWE) is pleased to present the multi-part white paper series “The Economics of UW-Madison” on issues of salience to UW-Madison and the state of Wisconsin. The first white paper estimated the value of a UW-Madison Bachelor’s degree. This second paper estimates the value of different majors at UW-Madison.
“We are excited to present the first estimates of the lifetime return to different UW-Madison majors. There is substantial variation in returns across majors,” says CROWE co-director Ananth Seshadri, who also holds the Mary Sue and Mike Shannon Distinguished Chair at UW-Madison’s Department of Economics. This second report “The Return to Majors at UW-Madison” estimates that while Computer Science and Business majors enjoy the highest returns, Education, Area/Ethnic/Cultural/Gender studies majors experience low returns. Some of the low return majors have an internal rate of return below the interest rate.
Students have incorrect and incomplete information about returns to majors and can benefit from such information. There is significant national concern about student debt. Co-director Seshadri adds, “Less understood is that this ‘crisis’ stems primarily from lack of earnings. Forgiving student loan debt is terrible policy and terrible economics. It does not promote equality of opportunity or efficiency.” An implication is that universities should provide information on returns to various majors so that students and families can make informed decisions.
