Originally Posted by RN4NICU They can be undercompensated for their additional education to an even greater extent.

Yup. Pretty much.
I'm an MSN candidate currently in a position that
requires an MSN. I'm a Nurse Educator.
Other jobs that I see for Master's prepared nurses are the following:
All Faculty positions
Educators (staff ed, patient ed)
Clinical Nurse Specialists
Nurse Practitioners, Midwives and other Advanced Practice nurses
Certain public health positions
Director-level positions (Director of Education, Director of Patient Care, etc. One RN here has her MBA and is VP of the hospital foundation)
Flexibility and marketability for other professions
And one really sweet job I saw about 2 years ago: writing and reviewing NCLEX questions. A total telecommunting job to boot.
Starting salary for most faculty positions are $30,000. It's pathetic. Which is why when I graduate I'm going to stay in the hospital setting.