Academics or skilled workers – who earns more?

A study reveals surprising insights into lifetime earnings of academics vs. skilled workers. Discover if a degree guarantees higher pay or if vocational training can lead to similar financial success.

A study reveals that, over an entire working life, the income difference between academic and non-academic education is smaller than many think.

Study on lifelong income

For years, the trend among young school leavers has been towards university studies: an academic career promises more money in the bank later on. However, it's not that simple, as a study by the Tübingen Institute for Applied Economic Research (IAW) shows. The study was commissioned by the Baden-Württemberg Chamber of Industry and Commerce (BWIHK).

The researchers analyzed the lifetime income of approximately 12,000 people born between 1948 and 1986. They used anonymized social security data for the survey. This allowed the scientists to precisely calculate the earnings of individuals with different educational backgrounds.

The calculations are based on gross employment income only, excluding income from capital and rentals, social benefits, or transfer payments. The income over the entire working life is considered.

University graduates initially earn less

The study generally concludes that an academic degree still offers good career prospects . However, employees with a master craftsman's certificate or a technician's degree earn about the same when considering total income over their entire working life.