Doctorate, salary and career.
There are many figures circulating about the impact of a doctoral degree. What can be said with any certainty is less, but far more useful for your decision.
The impact of a PhD on salary and position depends heavily on the sector and role. It is most pronounced in research-intensive fields, in consultancy, in the healthcare sector and in areas where formal qualifications are a prerequisite for entry. Generalised percentage figures should be treated with caution, as they rarely account for selection bias.
Why figures are tricky
Those who pursue a PhD are already different from others before they start: in terms of their education, field of study, region, aspirations and, often, their family background. Salary comparisons between PhD holders and non-PhD holders therefore always measure both the impact of the degree and the differences between the individuals.
Added to this is selection over time: those who persevere with a PhD whilst working possess qualities that would lead to career progression even without the title. It is therefore difficult to quantify the degree’s effect in isolation, and any neat percentage figure should make you wary.
Where the impact is greatest
Rather than a figure, it is helpful to ask whether the degree is a formal or de facto requirement for your target role:
When the effect takes hold
The degree has the most immediate impact during career changes, job vacancies and new appointments – in other words, wherever you are assessed on the basis of your profile rather than your proven track record. Within the same organisation, its impact is delayed and often indirect.
This is an argument for starting earlier: the longer your remaining working life, the more such situations you are likely to face.
How to check this for yourself
Take ten job advertisements for your target role and ten profiles of people who hold that role. If the degree features regularly in these, the question is answered. If not, the substantive motivation carries all the more weight.
Also, ask two people in your target role directly whether and how the degree played a part for them. These two conversations are more meaningful than any statistics across all sectors.
Follow-up questions.
How much more do you earn with a PhD?+
It is impossible to put a general figure on this. The effects vary greatly depending on the sector and role, and many comparisons do not account for selection bias.
Does a PhD help with promotions?+
Where formal qualifications form part of the assessment, yes. In purely operational careers, it counts for less.
Is the title worth more abroad?+
In many countries, it is more visible in the business world and is used more frequently. The relevant accreditation body decides how it may be used there.
Does the title have an impact even without changing employers?+
Usually yes, but with a delay. It has the quickest impact when changing jobs, in job vacancies and for consultancy assignments.
Which counts for more, the title or experience?+
In most roles, it’s experience. The degree makes a difference where experience is difficult to prove or is not formally sufficient.
Is a PhD worth it financially?+
As a pure investment calculation, the answer is rarely clear-cut. If you look at it purely in those terms, you’ll usually find better ways to invest your time.
Related.
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