In 2019, people with master’s degree earned, on average, about 22% more than young people who were just graduated. The information was extracted from the White Paper “More and Better Jobs for Young People”. The value of salary in education, especially for those with a degree, has decreased over time.
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In contrast, the salary percentage of young adults with a master’s degree has increased. This is what the documentation that is the result of research carried out by the José Neves Foundation through the Youth Employment Observatory and the Office of the International Labor Organization (ILO) in Portugal indicates.
Valuation of the professional with a master’s degree
“The salary premium for education clearly continues to exist, but it has been decreasing which, in turn, may reduce young people’s incentives to extend their educational and training path”, points out the White Paper.
In 2010, an adult person aged 25 to 34 years old, with a bachelor’s degree, earned on average about 95% more than another young person with only basic education and 59% of young people with medium education . These percentages dropped from 94% to 60% and from 59% to 42% in 2019.
On the other hand, the value of the master’s degree has increased. In the same year, people with the title, even if they were the same age, earned on average more than 22% than graduates, accounting for 12 points more than the year 2010.
Also according to the White Book, in 2019, the basic salary of a young master reached €1,617.16 while the wage for young graduates was €1,326.76. The subject who only had secondary education earned €934.44, while the one who had only basic education earned €827.65.
The White Book survey shows that the average salary of young people with a degree decreased by 14.5% between the years 2010 and 2019. On the other hand, the average of masters and doctors had a drop of 5.1% and 5. 6%.
Analyzing the market for young people in Portugal, the book pointed out that employment suffers from low quality due to the economic crises that were also influenced by the Covid-19 pandemic.