February 3, 2026
Key Takeaway
University of Minnesota graduates significantly outearn their peers across the state 10 years after graduation. Using data from the U.S. Census Bureau, this analysis shows a powerful and consistent UMN earnings advantage across every single field of study, demonstrating the university's profound impact on individual economic mobility and its role as a critical engine for Minnesota's economy.
About the Data
This brief measures the Earnings Premium1—a metric of postsecondary value—by comparing the median earnings of two specific groups:
- The UMN Cohort (10 years post-graduation): The median 2023 earnings for the University of Minnesota's system-wide 2013 baccalaureate cohort. This captures the 10-year, early-career trajectory of these graduates.
- The State Benchmark (Peer Group): The median 2023 earnings for all Minnesota residents aged 25-39 holding a bachelor's degree or higher.
Key Methodology Note: The 25–39 age range was selected because it brackets the average age of the 2013 cohort (approx. 32 years old), providing a fair and statistically robust early-career benchmark. The earnings figures for both groups reflect comprehensive career progress, including any advanced degrees earned after the initial baccalaureate degree. Therefore, the comparison demonstrates the long-term economic lift initiated by a UMN undergraduate degree relative to the statewide peer average.
The Overall University of Minnesota Value Proposition
The most direct measure of value is the "Earnings Premium" defined as the amount graduates earn above a benchmark. The UMN 2013 cohort's overall median earnings in 2023 were $83,795. This is $11,737 (or 16.3%) higher than the state benchmark median of $72,058. This robust premium confirms the substantial return on investment that a UMN education provides to its graduates.
A Premium in Every Field
In every field2 measured, UMN graduates outearn the state median for graduates in the same field. This finding is critical, as it shows the UMN degree adds measurable value across majors.
While high-demand, high-paying fields (e.g., STEM, business) see the largest dollar-value premiums, the consistent earnings premium advantage in education, literature and languages, and liberal arts and history is equally noteworthy.
2023 Median Earnings of 2013 UMN Baccalaureate Graduates vs. MN Population Age 25-39 with a Baccalaureate or Higher Degree by ACS Field of Degree (Earnings Adjusted to 2024 Dollars)
Sorted by Earnings Premium Percentage (Highest UMN Advantage)
2023 Median Earnings of 2013 UMN Baccalaureate Graduates vs. MN Population Age 25-39 with a Baccalaureate or Higher Degree by ACS Field of Degree (Earnings Adjusted to 2024 Dollars)
Sorted by Earnings Premium Percentage (Highest UMN Advantage)
| ACS Fields | UMN 2013 Baccalaureate Cohort: 2023 Median Earnings | State of MN Population: Age 25-39 with a Baccalaureate or Higher Degree by Field: 2023 Median Earnings | Premium (UMN - State) | Premium % (UMN vs. State) |
|---|---|---|---|---|
| Education | $74,672 | $53,970 | $20,702 | 38.4% |
| Business | $110,663 | $81,328 | $29,335 | 36.1% |
| Computers, Mathematics and Statistics | $124,830 | $93,217 | $31,613 | 33.9% |
| Engineering | $117,548 | $90,692 | $26,856 | 29.6% |
| Literature and Languages | $66,478 | $54,048 | $12,430 | 23.0% |
| Biological, Agricultural, and Environmental Sciences | $81,629 | $67,390 | $14,239 | 21.1% |
| Liberal Arts and History | $71,070 | $58,739 | $12,331 | 21.0% |
| Communications | $79,948 | $69,185 | $10,763 | 15.6% |
| Physical and Related Sciences | $90,054 | $78,255 | $11,799 | 15.1% |
| Other | $69,986 | $64,106 | $5,880 | 9.2% |
| Visual and Performing Arts | $60,044 | $55,467 | $4,577 | 8.3% |
| Science and Engineering Related Fields | $81,296 | $75,341 | $5,955 | 7.9% |
| Social Science | $77,923 | $72,682 | $5,241 | 7.2% |
| Psychology | $66,628 | $64,205 | $2,423 | 3.8% |
| Multidisciplinary Studies | $74,739 | $72,767 | $1,972 | 2.7% |
| Overall | $83,795 | $72,058 | $11,737 | 16.3% |
Note: Earnings have been adjusted to 2024 dollars.
Implications & Strategic Considerations
The findings in this brief have three primary policy and economic implications for the state of Minnesota.
1. A Proven Return on Investment for the State
The data provide clear, quantitative evidence that public investment in the University of Minnesota generates a high yield. The 16.3% overall earnings premium is not just a personal benefit for the graduate; it translates directly into a stronger tax base, greater community stability, and increased buying power across the state. This frames state support not as a cost, but as a data-driven strategy for strengthening Minnesota’s economic foundation.
2. The "UMN Advantage" Supports the Entire State Economy
The data directly challenge the narrative that only STEM degrees hold economic value. The UMN premium is universal, with graduates in fields such as Education, Liberal Arts, Literature and Languages, and Communications earning significantly more than their peers in the state of Minnesota. The University’s value is in providing a full portfolio that meets a wide range of the state’s diverse economic and social needs, not just the needs of one high-earning sector:
- Innovation Economy: Investments in high-demand fields (Computers, Engineering, Business) yield the largest dollar premiums, directly fueling the state's high-skill economy.
- The Essential Workforce: The substantial percentage premiums in fields essential to society (e.g., the 38.4% premium in Education) are equally important. This demonstrates that the UMN earnings premium provides critical financial resilience, making vital public-service careers viable for graduates.
3. A Proven Engine for Economic Mobility
The earnings premium is evident across all academic fields, making a UMN degree a reliable pathway to higher-than-average earnings and financial well-being in the state of Minnesota. These data highlight the critical relationship between state support and economic mobility.
The premium is the "engine" of mobility, and state-based financial aid programs like the MN State grant program are the "fuel". Together they ensure this powerful vehicle for prosperity is accessible to all Minnesotans, turning financial aid into a long-term tool for workforce development and economic mobility.
1 The Framework: This analysis adopts the "Threshold 1 (T1): Earnings Premium" metric developed by the Postsecondary Value Commission. This framework measures value by asking: Do graduates earn at least as much as the median worker in their state with a similar credential level and field of study? See the Postsecondary Value Commission Measuring Value framework for more detail.
2 “ACS Fields” refer to the U.S. Census Bureau's classification system used in the American Community Survey (ACS) to categorize the specific subject of a person's bachelor's degree. The UMN “Other” field value includes majors such as Apparel Design, Criminal Justice, Environmental Outdoor Education, Exercise Rehabilitation Science, Family Social Science, Housing Studies, Mortuary Science, Recreational Administration, Recreation Resource Management, Sport & Recreation Management, and Sport Management.
Data Sources: State-level data is sourced from the U.S. Census Bureau’s 2023 American Community Survey (ACS) 1-Year Estimates (Table B15014), which samples tens of thousands of Minnesota households annually. UMN earnings data are based on Minnesota Unemployment Insurance quarterly wage records accessed via the Minnesota Statewide Longitudinal Education Data System (SLEDS).
Adjustments: All earnings figures are adjusted to 2024 dollars. Degrees are categorized using the Census Bureau’s standard "Field of Degree" classification system.