Is Paying for a Masters Worth It?

[econ_to_stats]

While I'm still waiting to hear back from some programs, I've been admitted to a PhD program and a Masters program (both in statistics.) The masters program is not funded while the PhD program has a tuition waiver and modest stipend. I'm weighing my choices right now, and trying to decide if paying for a masters is worth it.

In terms of goals, I'd ultimately like to get a PhD from a highly ranked University, but if I can find a job with only a masters, I would be open to it. After years of struggling in the job market with a masters in economics from a low ranking university, my primary concern now is employability. So my question is, is it worth taking on maybe $100k in debt for a masters degree? Are they marketable by themselves? Would it help me get into a better phd program?

Looking at salaries, a phd from a lower ranked program might yield a salary of about $60k a year. If a higher ranked degree can yield a job with a salary of $100k, the difference in salary more than pays for the degree. But how realistic are those numbers?

I appreciate any insight anyone has to offer.

[JZappa]

Out of curiosity what job statistics are you using? There was a study by the American Statistical Association that shows salaries are quite a bit higher. Also why don't you ask if your PhD program gives an embedded masters. If it does you could just drop out after you get the masters and you'll have been funded the whole time if you decide that's what you want to do.

[econ_to_stats]

I was looking at the BLS Occupational Outlook Handbook and I also looked up salaries for statistics professors at various State Universities.

http://www.bls.gov/ooh/math/statisticians.htm#tab-5

The ASA surveys show higher salaries for more prestigious positions, but it's unlikely I will be hired for those positions.

I assume any PhD program will give you a masters after your second year, but I did that for economics at a low ranked program and it hasn't worked in my favor, so I'm reluctant to do it again.