2025 Education and Earnings Report

Table of Contents

Is pursuing a master’s degree a smart move when it comes to how your skills and abilities are viewed, or are employers placing more value on practical experience?

To find out, Resume Genius surveyed 1,000 U.S. hiring managers about who they view as having higher performance and salary potential: master’s degree holders vs candidates with a Bachelor’s degree plus two years of work experience.

Key Takeaways

A master’s degree is considered equivalent to two additional years of work experience, but 62% of hiring managers say performance is the same or worse between master’s degree holders and candidates with the equivalent years of additional experience.
4 in 10 hiring managers (38%) say candidates with a master’s degree perform at a higher level than those with 2 extra years of experience.
- Gen Z hiring managers are twice as likely as Boomers to see master’s degree holders as stronger performers (29% vs. 13%).
3 in 4 hiring managers say they would offer higher salaries to candidates with a master’s degree.
- 64% would offer a 10% salary increase.
- 20% would offer a 15% increase.
- 23% would offer a 20% increase.
Male hiring managers are more likely than female hiring managers to reward a master’s degree with higher pay (75% vs. 68%).
Male hiring managers are also 25% more likely to offer a 20% salary bump or greater to candidates with a master’s degree (25% of men vs. 20% of women).
Hiring managers in the West are 13% more likely to offer bigger salaries to master’s degree holders than those in the Northeast (76% vs. 67%).

62% of hiring managers say having a master’s degree doesn’t make you a better worker

According to Radford’s Career Ladder system, a master’s degree is equivalent to 2 additional years of work experience.

But does higher education actually lead to higher performance on the job?

To find out whether this concept holds true in practice, our poll asked hiring managers whether they believe employees with master’s credentials outperform those with a bachelor’s degree plus two years of experience.

The results reveal a divided verdict:

38% believe candidates with a master’s degree work at a higher level.
- 24% say master’s degree holders work at a slightly higher level.
- 14% say master’s degree holders work at a considerably higher level.
52% say performance is about the same between the two groups.
10% believe master’s degree holders perform worse than candidates with a Bachelor’s degree and 2 years of work experience.

While a master’s degree appears to offer some candidates a performance advantage, the majority say it doesn’t guarantee stronger performance — and for many roles, experience alone will be just as powerful in 2025.

Younger hiring managers are bigger believers in advanced degrees

Age matters when it comes to how hiring managers view education.

Our survey found that younger hiring managers — especially Gen Z — are far more likely to believe that a master’s degree leads to stronger job performance.

Here’s the generational breakdown:

47% of Gen Z hiring managers say master’s degree holders work at a higher level.
- By comparison, only 38% of Millennial and Gen X and 35% of Baby Boomer hiring managers say the same.
When asked whether master’s degree holders perform considerably better, 29% of Gen Z hiring managers agreed — nearly twice as many as Millennials (13%), Gen X (11%), and Baby Boomers (13%).
46% of Gen Z hiring managers say performance is about the same between master’s holders and candidates with a Bachelor’s degree plus two years of experience.
- That’s lower compared to 51% of Millennials, 54% of Gen X, and 53% of Baby Boomers.

Meanwhile, skepticism grows with age: 13% of Baby Boomers believe master’s degree holders perform worse than candidates with work experience, which is higher than Millennials (11%), Gen X (8%), and Gen Z (7%).

A master’s degree can mean a 20% higher salary

While having an advanced degree doesn’t always guarantee better job performance, our survey suggests it still often leads to bigger paychecks.

Hiring managers are often willing to offer higher salaries to candidates with advanced degrees. Here’s what we discovered:

72% of hiring managers say they would offer a higher salary to candidates with a Master’s degree.
- 64% say they would offer a 10% increase.
- 20% say they would offer a 15% increase.
- 23% say they would offer a 20% increase.
- 28% of hiring managers say that a Master’s degree doesn’t impact salary offers at all.

Younger hiring managers are more likely to reward master’s degrees with higher pay

The younger the hiring manager, the more likely they are to offer a salary boost to candidates with a Master’s degree.

As it turns out, Gen Z and Millennial hiring managers are significantly more generous than their older counterparts when it comes to rewarding advanced education.

Here’s the breakdown:

80% of Gen Z hiring managers would offer a higher salary to master’s degree holders, compared to 78% of Millennials, 67% of Gen X, and 62% of Baby Boomers.
- Gen Z hiring managers are 28% more likely than Boomers to offer a salary increase for a master’s degree.

When it comes to large salary boosts:

31% of Gen Z hiring managers say they would offer a 20% or greater salary bump.
- That finding compares to 24% of Millennials, 21% of Gen X, and only 17% of Boomers.

However, not everyone’s convinced — especially older hiring managers:

38% of Baby Boomers say that a master’s degree doesn’t impact salary offers — nearly twice the rate of Gen Z hiring managers (20%).
- In comparison, 33% of Gen X and 22% of Millennial hiring managers also say a master’s degree doesn’t affect salary.

Men are more likely to offer big salary bumps for master’s degrees

When it comes to rewarding education with higher pay, male hiring managers are more likely to open their wallets.

Responses revealed that men were more generous across the board when it came to salary offers for candidates with a master’s degree.

75% of male hiring managers say they would offer a higher salary to someone with a master’s degree, compared to 68% of female hiring managers.
- 1 in 4 male hiring managers (25%) say they would offer a 20% or greater salary increase, compared to 20% of female hiring managers.

Master’s degrees pay off more in the West

It appears that where you apply for a job can affect your earnings too.

According to our research, hiring managers in the Western region of the U.S. are the most willing to reward a graduate degree with higher pay:

8 in 10 hiring managers from the West (76%) would offer a higher salary for those with a master’s degree.
- 1 in 4 Western hiring managers (25%) say they would offer a salary increase of at least 20% to a candidate with a master’s degree.

By contrast, the Northeast is the least willing to give out a higher salary offer:

67% of Northeast hiring managers would offer a higher salary for a master’s degree, compared to 73% in the Midwest and 72% in the South.

Conclusion

While getting a master’s degree doesn’t guarantee better job performance, our survey suggests it often leads to higher pay, particularly when applying to companies with younger hiring managers or in certain regions like the West.

If you’re considering a master’s degree, it’s important to weigh the time, cost, and your long-term career goals. Our findings indicate that hiring managers do value further education, but experience can be just as powerful, depending on your field.

If earning a master’s isn’t accessible or the right fit for you, that’s okay. Building strong work experience and skills remains a proven way to grow your career and negotiate higher salaries. A master’s degree can be an advantage, but it’s not the only path to success.

Methodology

The Education and Earnings Report came from a Pollfish survey launched on January 8, 2025, targeting a sample of 1,000 participants. The analysis was conducted from February 3–14, 2025. The study examined how hiring managers perceive the value of a master’s degree compared to a Bachelor’s degree plus two years of work experience and the salary implications tied to higher education during the recruitment process.

Qualifying respondents were required to be working as a hiring manager, or be part of the hiring team in their company. The survey ensured a balanced representation across various demographics, including gender and age groups, to accurately reflect the diversity of US job seekers.

The data was analyzed using both the results provided by Pollfish and the outputted raw data in Google Sheets via programs created with Python Pandas.

To minimize bias, Pollfish uses Random Device Engagement (RDE) to ensure a fair and organic selection process. For further details on Pollfish’s methodology, please visit their website or contact ethan@resumegenius.com.

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Eva Chan

Senior PR Expert & Certified Professional Resume Writer

Eva Chan is the Senior PR Expert and a Certified Professional Resume Writer (CPRW) at Resume Genius. Born and raised in Vancouver, British Columbia, Eva is passionate about researching and discussing the ever-changing career space and its latest trends, and channels this enthusiasm into supporting professionals of all experience levels so they stand out in a competitive job market. Eva graduated from the University of British Columbia with a bachelor’s degree in English. Eva's insights and career advice have earned recognition from leading platforms including CNBC, Harvard Business Review, The Globe and Mail, Forbes, Newsweek, and Entrepreneur. For any media-related queries or for a future quote, you can reach her at [eva] @ [resumegenius.com] or connect with her via LinkedIn. Please note that we don’t accept any guest posts.

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