Law school as an investment

November 16, 2009
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Should the decision of whether or not to go to law school be made just as one would when deciding what stocks to buy for their 401k or invest in an IRA? Professor Herwig Schlunk at Vanderbilt University Law School thinks so.

In his 12-page working paper, he sets up three scenarios of law students and whether or not it’s worth it for them to spend the money on a law degree. He’s got the Also Ran who got above average grades in a relatively nonmarketable major from a middle-of-the-pack school for his undergraduate degree. This person would get into a second or third rate law school and has little chance of landing a “big law” job. The Solid Performer got relatively good grades in a relatively marketable major from a better school and will make it into a low first- or high second-rate law school. The Solid Performer also has a better chance of landing a job at a big law firm.

Finally, Schlunk introduces us to Hot Prospect, who as the name suggests, got stellar grades in a very marketable major from a highly ranked school and will attend a first-rate law school and should land the big law job.

After going on about opportunity costs, investments, lost non-legal salaries, and throwing around other hypothetical numbers, Schlunk concludes the Also Rans shouldn’t bother to go to law school because it’s not a good investment. Solid Performers should think hard before choosing to become a lawyer and, Hot Prospects should have little qualms about investing in a J.D.

Of course, everyone’s experiences will be different, and if you are an Also Ran who happened to score grants or scholarships, then by all means go to law school.

Schlunk’s paper highlights a downside of law school: the costs and the time it takes to recoup the money you spent to get your degree. Law school has always been thought of as a fallback in case you don’t make it as a writer or you find out teaching just isn’t for you. But with the number of people in law school now, the shrinking number of jobs, and the bleak outlook on the immediate horizon, perhaps looking at going to law school as an investment will help some decide whether it’s right for them.

Of course, those who have a passion for the law would become attorneys regardless, but those on the fence may be better served by thinking of it in these terms.

You can read the paper through a link on the Wall Street Journal’s Law Blog, if you don’t want to download the paper. The link provided in the paper to view it online actually goes to a securities paper, which wouldn’t be very helpful for today’s post.
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  • In other words, the legal profession is 100% about money. That, of course, is what its critics have long believed and said.
  • Trust a professor from Vanderbuilt to assume that a job in Big Law is the ultimate goal for every person entering law school. No doubt there are a number of folks who long for a position in a Big Firm. But, there will always be those who look for other things: public service, careers with family lives, helping those who can\'t pay Big Law fees, alternative legal careers, etc., etc., etc.

    Law School IS an investment. But, what you invest and how that investment pays mean something different to everyone. To suggest otherwise is the research equivalent to basing a brief on a statute without ever having checked the pocket part: looks the part but too shallow to be meaningful.

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  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

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