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University Quality and Graduate Wages in the UK

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  • Iftikhar Hussain
  • Sandra McNally
  • Shqiponja Telhaj

Abstract

We examine the links between various measures of university quality and graduate earnings in the United Kingdom. We explore the implications of using different measures of quality and combining them into an aggregate measure. Our findings suggest a positive return to university quality with an average earnings differential of about 6 percent for a one standard deviation rise in university quality. However, the relationship between university quality and wages is highly non-linear, with a much higher return at the top of the distribution. There is some indication that returns may be increasing over time.

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File URL: http://cee.lse.ac.uk/ceedps/ceedp99.pdf
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Bibliographic Info

Paper provided by Centre for the Economics of Education, LSE in its series CEE Discussion Papers with number 0099.

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Date of creation: Mar 2009
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Handle: RePEc:cep:ceedps:0099

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Web page: http://cee.lse.ac.uk/publications.htm

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Keywords: university quality; returns to education;

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References

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  1. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20033, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  2. Chevalier, Arnaud & Conlon, Gavan, 2003. "Does It Pay to Attend a Prestigious University?," IZA Discussion Papers 848, Institute for the Study of Labor (IZA).
  3. Stacy Berg Dale & Alan B. Krueger, 1999. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," NBER Working Papers 7322, National Bureau of Economic Research, Inc.
  4. Dan A. Black & Jeffrey A. Smith, 2006. "Estimating the Returns to College Quality with Multiple Proxies for Quality," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 701-728, July.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Luke O'Neill on McCarthy Report
    by Liam Delaney in Geary Behaviour Centre on 2009-08-18 17:51:00
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Cited by:
  1. Kleibrink, Jan & Michaelsen, Maren M., 2014. "Reaching High: Occupational Sorting and Higher Education Wage Inequality in the UK," IZA Discussion Papers 8255, Institute for the Study of Labor (IZA).
  2. Joan Rosselló Villalonga, 2013. "Stratification of Public Universities and Students’ Segregation," Hacienda Pública Española, IEF, vol. 205(2), pages 99-124, June.
  3. Yu Zhu & Ian Walker, 2011. "Differences by Degree: Evidence of the Net Financial Rates of Return to Undergraduate Study for England and Wales," Working Papers 33, AlmaLaurea Inter-University Consortium.
  4. Ciriaci, Daria & Muscio, Alessandro, 2010. "Does university choice drive graduates’ employability?," MPRA Paper 22846, University Library of Munich, Germany.
  5. Ireland, Norman & Naylor, Robin A. & Smith, Jeremy & Telhaj, Shqiponja, 2009. "Educational Returns, ability composition and cohort effects : theory and evidence for cohorts of early-career UK graduates," The Warwick Economics Research Paper Series (TWERPS) 906, University of Warwick, Department of Economics.
  6. Javier Valbuena, 2012. "A Longitudinal Perspective on Higher Education Participation in the UK," Studies in Economics 1215, Department of Economics, University of Kent.
  7. Broecke, Stijn, 2012. "University selectivity and earnings: Evidence from UK data on applications and admissions to university," Economics of Education Review, Elsevier, vol. 31(3), pages 96-107.
  8. Francis Green & Stephen Machin & Richard Murphy & Yu Zhu, 2012. "The Changing Economic Advantage from Private Schools," Economica, London School of Economics and Political Science, vol. 79(316), pages 658-679, October.
  9. Fabian Waldinger, 2010. "Quality Matters - the Expulsion of Professors and Ph.D. Student Outcomes in Nazi Germany," CEP Discussion Papers dp0985, Centre for Economic Performance, LSE.
  10. Andrea Cammelli, 2012. "Consolidamento ed eterogeneità nelle esperienze di studio dei laureati italiani," Working Papers 49, AlmaLaurea Inter-University Consortium.
  11. Steve Gibbons & Anna Vignoles, 2009. "Access, choice and participation in higher education," LSE Research Online Documents on Economics 23656, London School of Economics and Political Science, LSE Library.
  12. Gibbons, Stephen & Vignoles, Anna, 2012. "Geography, choice and participation in higher education in England," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 98-113.
  13. Steve Gibbons & Anna Vignoles, 2009. "Access, Choice and Participation in Higher Education," CEE Discussion Papers 0101, Centre for the Economics of Education, LSE.
  14. Julian Betts & Christopher Ferrall & Ross Finnie, 2013. "The Role of University Characteristics in Determining Post-Graduation Outcomes: Panel Evidence from Three Canadian Cohorts," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 81-106, May.

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