Break-even income analysis of pharmacy graduates compared to high school and college graduates

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Abstract

Objective. To project the net cumulative income break-even point between practicing pharmacists and those who enter the workforce directly after high school graduation or after obtaining a bachelor’s degree. Methods. Markov modeling and break-even analysis were conducted. Estimated costs of education were used in calculating net early career earnings of high school graduates, bachelor’s degree holders, pharmacists without residency training, and pharmacists with residency training. Results. Models indicate that over the first 10 years of a pharmacist’s career, they accumulate net earnings of $716 345 to $1 064 840, depending on cost of obtaining the PharmD degree and career path followed. In the break-even analysis, all pharmacy career tracks surpassed net cumulative earnings of high school graduates by age 33 and bachelor’s degree holders by age 34. Conclusion. Regardless of the chosen pharmacy career track and the typical cost of obtaining a PharmD degree, the model under study assumptions demonstrates that pharmacy education has a positive financial return on investment, with a projected break-even point of less than 10 years upon career entry.

Original languageEnglish (US)
Article number44
JournalAmerican journal of pharmaceutical education
Volume80
Issue number3
DOIs
StatePublished - Jan 1 2016

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Pharmacists
graduate
career
pharmacist
income
bachelor
Internship and Residency
Costs and Cost Analysis
school
school graduate
Pharmacy Education
costs
school graduation
Education
education

All Science Journal Classification (ASJC) codes

  • Education
  • Pharmacology, Toxicology and Pharmaceutics(all)

Cite this

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title = "Break-even income analysis of pharmacy graduates compared to high school and college graduates",
abstract = "Objective. To project the net cumulative income break-even point between practicing pharmacists and those who enter the workforce directly after high school graduation or after obtaining a bachelor’s degree. Methods. Markov modeling and break-even analysis were conducted. Estimated costs of education were used in calculating net early career earnings of high school graduates, bachelor’s degree holders, pharmacists without residency training, and pharmacists with residency training. Results. Models indicate that over the first 10 years of a pharmacist’s career, they accumulate net earnings of $716 345 to $1 064 840, depending on cost of obtaining the PharmD degree and career path followed. In the break-even analysis, all pharmacy career tracks surpassed net cumulative earnings of high school graduates by age 33 and bachelor’s degree holders by age 34. Conclusion. Regardless of the chosen pharmacy career track and the typical cost of obtaining a PharmD degree, the model under study assumptions demonstrates that pharmacy education has a positive financial return on investment, with a projected break-even point of less than 10 years upon career entry.",
author = "Marie Chisholm-Burns and Justin Gatwood and Christina Spivey and Dickey, {Susan E.}",
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