Expected versus Actual Returns to STEM Master’s Degrees: A Disciplinary Analysis

This study examines whether STEM students accurately anticipate economic returns from master’s degrees by comparing expectations with actual graduate outcomes across Science and Engineering disciplines. Using survey data from 659 currently enrolled students and 223 employed graduates from Delhi universities, we find systematic disciplinary differences in expectation accuracy. Science students significantly overestimate returns by 58.7 percentage points (t = 2.207, p < 0.05), while Engineering students show no significant expectation bias despite underestimating by 17.2 percentage points (t = -0.548, p > 0.05). These findings reveal discipline-specific information failures requiring targeted interventions in career counseling and transparency policies.