Does the American Dream Start With an American Degree?

• The share of foreign graduate students in the US has risen by nearly one-third over the past few years: International students made up around 18% of graduate students finishing programs in the US in 2021 and more than 24% in 2024. This reverses the decline in international share from 2017 to 2021.

• For foreign workers in the US, is graduating from a US institution worth the cost? A US degree comes with a salary premium: Of foreign workers in the US who earned graduate degrees in the past 5 years, those with degrees from US schools earn around $15k more than those with foreign degrees.

• For international students who earn US degrees, the roles with the most employment opportunities do not always offer the highest salary premiums. Students considering US degrees may weigh both job availability and salary potential when choosing their career paths.

Foreign students have long played an important role in higher education in the United States. The admission of these students brings benefits to the US: They not only bring diverse perspectives and global knowledge to campuses but also contribute significantly to the economy through tuition fees, research, and innovation. International students are attracted to the benefits of a US education, thanks to the world-class universities and cutting-edge research opportunities. For many, education provides a pathway to building a longer career in the US, playing a large part in high-skilled immigration. This week, we examine the value of an American graduate degree for international students considering whether to pursue studies and careers in the US.

While our data does not explicitly include an individual’s nationality or country of birth, we can approximate foreign status by using the country of an individual’s earliest observed education. Our sample includes individuals who were enrolled in graduate degree programs, excluding cases where the graduate degree is the earliest education observed.

How has the share of international students changed over time? We observe that, in the last ten years, international students have generally comprised around 20% of all graduate students completing their programs each year. The share has been increasing from 2014 to 2016, dropped in the years following COVID—perhaps unsurprisingly—and has since rebounded in 2023 and 2024 to surpass pre-COVID levels: International students made up nearly one quarter of graduate students completing their programs in 2024.

However, these students may face unique challenges in remaining in the US after their degree programs end. Most international students are on F-1 visas, which only allow students to stay temporarily for up to one year in Optional Practical Training (OPT) after finishing their degree. While certain STEM degrees have a longer OPT period, allowing students to stay for up to three years beyond graduation, a longer-term stay still requires a transition to another visa type, which can be a difficult and bureaucratic process. For instance, work visas such as the H-1B are highly competitive and in limited supply, with many applicants competing for a small number of spots. We find that more than 30% of international graduate students leave the US within the same year that they obtain their degree, and fewer than 60% remain five years after graduation. This likelihood of remaining in the US is not only relevant to the students themselves—it may also be an important consideration for US graduate programs, especially PhD programs, which invest in students through funding, training, and other resources, even though many may ultimately leave the country after graduation.

For foreign students, obtaining a graduate degree in the US may still help in securing a US-based job. Among foreign employees with graduate degrees who are currently employed in the US, more than 70% obtained their degree from a US institution. However, not all roles offer the same opportunities, as certain fields or industries provide a higher chance of employment for US degree holders. Data- and tech-related roles, for example, have a higher likelihood of staying in the US: Around 90% of US-based foreign employees in these roles hold a graduate degree from a US institution rather than one from abroad. On the other hand, only around 60% of foreign employees in accounting and medical roles received their degrees from a US institution. This may be because these roles require specific certifications to practice in the US, which foreign degree holders can obtain regardless of where they earned their degree.

While some jobs offer higher chances of employment, prospective students are also likely to take into consideration the monetary benefit of obtaining a US degree when evaluating career options, especially when it comes to master’s or other non-funded degrees. Is there a salary premium associated with holding a US degree? We find that this educational investment may indeed pay off: The average salary of foreign employees with US graduate degrees is around $15,000 higher than that of foreign employees with international graduate degrees.

Finally, we show the opportunity matrix for different roles below, comparing the prevalence of US degrees to their salary premium for foreign employees in each role. Roles in the top-right quadrant—those with above-median US degree prevalence and above-median salary premiums—might be seen as the “best” jobs to enter for international students considering a US degree. However, we find that there may be a potential tradeoff between roles that are more likely to hire workers with US degrees and the salary premium associated with those degrees. In the data- and tech-related roles where US degrees are most common, foreign employees with and without US degrees earn similar salaries. On the other hand, roles in science and medicine yield the highest salary premiums—for example, foreign nurses with a US graduate degree earn 20% more than those with a foreign degree.

Foreign students play an essential role in shaping the US educational landscape, contributing not only to campus diversity but also to the nation’s economy. Their presence in graduate programs has remained a steady and significant part of the academic environment, especially in recent years. However, challenges for international students persist, particularly regarding visa restrictions and employment opportunities after graduation, which impact both the students themselves and institutions that rely on international talent for research and innovation. Current and potential international students face decisions not only about which fields to enter but also whether to pursue a US graduate degree at all, especially in light of possible cuts to educational funding. Foreign students considering future careers in the US should carefully weigh their choices when it comes to the path of their US education, comparing options that offer greater employment opportunities against those with higher potential salary benefits.