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| Friday, March 30, 2007 |
| A Fresh PhD's Career Decision Tree |
Given that Yannick and I stayed in graduate school for such a long time, we made many friends who got PhD's in various fields--economics, business, engineering, science… Some went for academic career and are already titled professors; some are still struggling for their tenure; some went to industry and become millionaires from IPOs; some got laid off and came back to school. And those fresh ones, seeing footsteps from their senior fellows, feel confused. They seek help, from advisors and professors, from fellow PhD students, from friends, from families. And the truth is: the more people they ask, the more information they gather, the more difficult the decision becomes.
After our discussion with mOOm about the value of a graduate degree and seeing the struggle many of our friends are facing, I decided to draw a decision tree to help people go through the process. This is, by no means, a replacement for advice from an academic advisor, or your career development help center. This is just my little game to find out whether what I learned in textbook can really find some use in real life.
I am not an engineering and science major, but I find PhDs in engineering and science often face a more complicated choices. They can choose to do a post-doctoral fellowship, just like residency for MD. People from economics or business school normally do not have to go through this. So I decided to draw a decision tree for Sisi, a fresh PhD from science and engineering.
Sisi got her PhD in applied math from a top school. As a fresh PhD, Sisi does have some options, and that’s exactly what she and her family are struggling with.
(1) She can get an assistant professor position in a 2nd or 3rd tier university right now, which pays about $60-80k.
(2) She can work in the industry, which pays six figures right away.
(3) She can wait for another year or two as a post-doc fellow, and shoot for a faculty position in a1st tier university.
Here is a very Simplified version of a pseudo-decision-tree.
Two main reasons make this tree "pseudo". First, Sisi is struggling with assigning probabilities to each branch. What’s the probability of getting unemployed in 2 years? Sisi had a friend who joined a very big and profitable company 2 years ago, and come back to school now due to company re-structure. What's probability of building a successful business of her own? Go to any bar in Silicon valley any day, Sisi will find 1/2 of people there dreaming of building another google, or at least a youtube. But we had only one Google, one youtube. Sisi believes that she has a technical edge to build his own business, but how can she assign a probability on this?
Second, Sisi puts only monetary value in stead of utility on each node. What makes this decision even more complicated is that Sisi and her family assign different utility to each outcome. Sisi’s husband wants her to go to a 2nd -3rd tier schools, so she can has less pressure and get a baby soon. He also puts higher utility on going to industry, since he has the same dream as a valley girl and wants Sisi to join him.
However, as a female who window-shops designer clothing from time to time, Sisi puts higher utility on "brand names". Practically speaking, option-3 is the least ‘economical one. Doing a post-doc costs another 2-3 years with minimum pay. After that, if she gets to a 1st tier university, the pay is generally lower than 2nd tier university. Top universities always have higher bargaining power, in accepting students, in recruiting faculty. However, how many 1st tier universities can you find? Supply and demand determine the price. If Sisi wants to get the brand equity of 1st tier universities, Sisi has to pay the premium. Sisi is ready to pay for it, her husband is still hesitating.
And as a female, Sisi puts higher utility on security (on this part, Sisi is not alone ). Getting tenure in whatever university will give Sisi's family low but guaranteed income and legal status. As immigrants without a green card, Sisi’s first priority is: Security! Security!! Security!!!
Still, the problem of assigning probability remains. I know that many fresh PhDs are facing Sisi's decision tree. In fact, many friends of ours are on the same boat right now. Assigning these probabilities requires experience, across time, across people. I hope that senior readers who have experienced all these can help Sisi fill in the probability in the tree. If we can get a large sample, the law of large number will work for us.
TIA!Labels: Career, Green Card, PhD |
posted by Jacqui @ 2:54 PM | Add to del.icio.us
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| Saturday, February 24, 2007 |
| Non-Resident Alien or Resident Alien? |
A blog friend started a discussion on tax filing for Aliens here . Yannick and I have been filing as Non-resident alien and then Resident alien for years, and we may have to file as "Aliens" for a few more years if the Green Card waiting lines gets longer :( So we can not help sharing our experience.
EDIT:
I realized that my discussion on the topic with mOOm and Golbguru was a bit too fragmented. Therefore, I am recompiling my comments in the following:
F-1 and J-1 student visa holders are generally considered nonresident aliens for any part of the first five calendar years they are in the U.S. in that visa status. F-1 and J-1 students who have been in the U.S. for more than five consecutive calendar years are considered to be resident aliens for tax purposes.
To know why, first you should know that IRS is mainly concerned with the number of years you've been to US, not your immigration status defined by INS (USCIS recently).
You can get the spirit of the tax law from the IRS publication :
"The residency rules for tax purposes are found in I.R.C. § 7701(b). Although the tax residency rules are based on the immigration laws concerning immigrants and nonimmigrants, the rules define residency for tax purposes in a way that is very different from the immigration laws. Under the residency rules of the Code, any alien who is not a RESIDENT ALIEN is a NONRESIDENT ALIEN. An alien will become a RESIDENT ALIEN in one of three ways:
(1) by being admitted to the United States as, or changing status to, a Lawful Permanent Resident under the immigration laws (the Green Card test);
(2) by passing the Substantial Presence Test (which is a numerical formula which measures days of presence in the United States);
or (3) by making what is called the "First Year Election" (a numerical formula under which an alien may pass the Substantial Presence Test one year earlier than under the normal rules).
Under these rules, even an undocumented (illegal) alien under the immigration laws who passes the Substantial Presence Test will be treated for tax purposes as a RESIDENT ALIEN."
So the Substantial Presence Test is the relevant part for most F1 or J1 holders.
In the IRS Publication 519, US Tax Guide to Aliens, it says that you don't count any day you are an F1 student towards presence in the US for the substantial presence test. However, after saying students (F1) were one of the "exempt" cases, the "exempt" status were automatically taken away after 5 years.
"You will not be an exempt individual as a student if you have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years unless you establish that you do not intend to reside permanently in the United States and you have substantially complied with the requirements of your visa."
So enjoy the Resident Alien status which allows you to claim same number of deductions as a US Citizen after five years of consecutive F1 status and claim tax treaty benefit if your country has a tax treaty with the US. Even better, full-time students enrolled in a university and working part-time for the same university are exempted from FICA payroll taxes.Labels: Green Card, Non-Resident Alien, Resident Alien, Tax |
| posted by Jacqui @ 5:42 PM | Add to del.icio.us
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