Wednesday, March 21, 2012

So I Might Make a Decent Living

So the other day in statistics, we reviewed multiple regression analysis and the use of dummy variables. Not super exciting in itself until applied to something I care about: my future salary. We reviewed the most recent alumni survey results from my graduate program and did some statistical analysis.

Surveys were sent out to around 2000 grads and 617 responded (n=617 as a sample size. See what I learned?!). When the sample was limited to only those working full-time and making less than $400,000 (to create a normal distribution), the sample size dropped to 440 respondents. That taken into account, the average salary for a graduate with a masters of urban planning is $98,385! I can feed my unborn babies with that and maybe even send them to college--public, of course.

Then things got more interesting. Using multiple regression analysis, this was determined to be the best fit model for masters of urban planning graduate income:

Income = $62,252 + $1,678*(Years of of school) + $787*(Time employed at current job) + $7,320*(Male) + $1,562*(Private Sector*Years out of school)

What this means is that a starting salary should be around $62,252. I am more than OK with that number. But then it brings into light the fact that women still make less than men. Men will, on average, make an additional $7,320 a year just for having a penis (to this fact, one of the boys in the class blurted out, "YES!!"). Private sector jobs usually make more and the longer you've been out of school or at your current job, the higher your salary will be. However, all these variables only count for about 35% of explaining salary amounts.

This leads me to the conclusion that all I really want after graduation is a job.

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