<p>boneh3ad nailed it, but I wanted to address a few specific questions:</p>
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<p>An MS usually takes 2 years and saves 1 year on your PhD. At most schools, the first year of the PhD program is just master’s level courses. On occasion (and this is common in IE programs), an MS will save you no time since PhD students take PhD level courses in the first semester.</p>
<p>It’s also worth noting that many PhD programs give you an MS as part of the program. So you’ll enroll for a PhD, take PhD courses, and after 2 or 3 years (post comps/quals), you’re given an MS. It’s also customary to give someone an MS if they drop out of a PhD program (as long as they’ve put in a few years).</p>
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<p>It depends on the company. Some corporate cultures are such that everyone expects you to have an MS and they treat you differently if they find out you don’t have one (don’t ask why - that’s just the corporate culture).</p>
<p>In most companies, that’s not the case. An MS in engineering really doesn’t increase your salary much and is equivalent to one year of experience.</p>
<p>So why do people get MS degrees? First of all, it’s much easier to get into an MS program than a BS or PhD program at most schools, allowing you to upgrade from a second tier school to a first tier school (or a first tier to an elite, etc). Do you want to go to MIT? It’s incredibly difficult to get in to the BS and PhD programs, but the MS isn’t so difficult. So if you want the MIT name on your resume (and access to MIT’s career services department), an MS is a good way to do it.</p>
<p>Also, you can take the MS in the different direction (going from a top tier school to a second tier school) to increase your GPA. Have a problem finding a job with a 2.5 GPA from a top school? With a good GRE score, a second tier school will probably take you. If you start over and earn a 4.0 at that school, you can go on the job market with a 4.0 GPA. </p>
<p>And the final (and intended) reason for the MS is for students that want to research. Maybe you want to go to a top school, but didn’t have the opportunity to research as an undergraduate (perhaps you went to a teaching school, for instance) or perhaps you think research is for you, but you’re not sure. You can go to a research university for an MS program, join a lab, and perform some research. Then you can apply to PhD programs with research under your belt or can decide to go into industry.</p>