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The Return to a University Education in Great Britain

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Author Info
Sloane, Peter J. (University of Wales Swansea and IZA Bonn)
O'Leary, Nigel C. () (University of Wales Swansea)

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Abstract

In this paper, we estimate the rate of return to first degrees, masters degrees and PhDs in Britain using data from the Labour Force Survey. We estimate returns to broad subject groups and more narrowly defined disciplines, distinguishing returns by gender and attempting to control for variations in student quality across disciplines. The results reveal considerable heterogeneity in returns to particular degree programmes and by gender, which have important policy implications for charging students for the costs of their education.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1199.

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Length: 37 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1199

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Related research
Keywords: education; wages;

Other versions of this item:

Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J0 - Labor and Demographic Economics - - General
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Blackaby, D H & Murphy, P D & O'Leary, N C, 1999. "Graduate Earnings in Great Britain: A Matter of Degree?," Applied Economics Letters, Taylor and Francis Journals, vol. 6(5), pages 311-15, May. [Downloadable!] (restricted)
  2. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  3. David Greenaway & Michelle Haynes, 2003. "Funding Higher Education in The UK: The Role of Fees and Loans," Economic Journal, Royal Economic Society, vol. 113(485), pages F150-F166, February. [Downloadable!] (restricted)
  4. Sveinbjörn Blöndal & Simon Field & Nathalie Girouard, 2002. "Investment in Human Capital Through Post-Compulsory Education and Training: Selected Efficiency and Equity Aspects," OECD Economics Department Working Papers 333, OECD, Economics Department. [Downloadable!]
  5. Arnaud Chevalier & Gavan Conlon, 2003. "Does it pay to attend a prestigious university?," CEE Discussion Papers 0033, Centre for the Economics of Education, LSE. [Downloadable!]
    Other versions:
  6. Blundell, Richard, et al, 2000. "The Returns to Higher Education in Britain: Evidence from a British Cohort," Economic Journal, Royal Economic Society, vol. 110(461), pages F82-99, February. [Downloadable!] (restricted)
  7. Pedro Telhado Pereira & Pedro Silva Martins, 2004. "Returns to education and wage equations," Applied Economics, Taylor and Francis Journals, vol. 36(6), pages 525-531, April. [Downloadable!] (restricted)
    Other versions:
  8. Machin, Stephen & Puhani, Patrick A., 2003. "Subject of degree and the gender wage differential: evidence from the UK and Germany," Economics Letters, Elsevier, vol. 79(3), pages 393-400, June. [Downloadable!] (restricted)
    Other versions:
  9. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March. [Downloadable!] (restricted)
  10. Derek Leslie, 2003. "Using success to measure quality in British higher education: which subjects attract the best-qualified students?," Journal Of The Royal Statistical Society Series A, Royal Statistical Society, vol. 166(3), pages 329-347. [Downloadable!] (restricted)
  11. Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers 98-03, Department of Economics, University of Aberdeen. [Downloadable!]
  12. Dan A. Black & Seth Sanders & Lowell Taylor, 2003. "The Economic Reward for Studying Economics," Economic Inquiry, Oxford University Press, vol. 41(3), pages 365-377, July. [Downloadable!] (restricted)
  13. Chevalier, Arnaud, 2003. "Motivation, expectations and the gender pay gap for UK graduates," Royal Economic Society Annual Conference 2003 42, Royal Economic Society. [Downloadable!]
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kostas Mavromaras & Seamus McGuinness & Nigel O’Leary & Peter Sloane & Yi King Fok, 2007. "The Problem of Overskilling in Australia and Britain," IZA Discussion Papers 3136, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Elish Kelly & Philip O'Connell & Emer Smyth, 2008. "The Economic Returns to Field of Study and Competencies Among Higher Education Graduates in Ireland," Papers WP242, Economic and Social Research Institute (ESRI). [Downloadable!]
  3. Steve Machin & Anna Vignoles, 2005. "Education Policy in the UK," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 3(4), pages 64-74, 01. [Downloadable!]
  4. Nigel C. O'Leary & Peter J. Sloane, 2006. "Rates of Return to Degrees across British Regions," IZA Discussion Papers 1947, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Ian Walker & Yu Zhu, 2007. "The College Wage Premium, Overeducation, and the Expansion of Higher Education in the UK by and," Working Papers 200720, Geary Institute, University College Dublin. [Downloadable!]
  6. Livanos, Ilias & Pouliakas, Konstantinos, 2009. "Wage Returns to University Disciplines in Greece: Are Greek Higher Education Degrees Trojan Horses?," MPRA Paper 14159, University Library of Munich, Germany, revised 21 Jul 2009. [Downloadable!]
    Other versions:
  7. O'Leary, Nigel C. & Sloane, Peter J., 2005. "The Changing Wage Return to an Undergraduate Education," IZA Discussion Papers 1549, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Pouliakas, Konstantinos & Livanos, Ilias, 2008. "The Gender Wage Gap as a Function of Educational Degree Choices in Greece," MPRA Paper 14168, University Library of Munich, Germany, revised 19 Mar 2009. [Downloadable!]
  9. Ian Walker & Yu Zhu, 2005. "The College Wage Premium, Overeducation, and the Expansion of Higher Education in the UK," IZA Discussion Papers 1627, Institute for the Study of Labor (IZA). [Downloadable!]
  10. B. Müge Tunaer & Yaprak Gülcan, 2006. "Measuring Returns to Education in Turkey," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Proceedings of the Conference on Human and Economic Resources, pages 66-71 Izmir University of Economics. [Downloadable!]
  11. Grazier, Suzanne & O'Leary, Nigel C. & Sloane, Peter J., 2008. "Graduate Employment in the UK: An Application of the Gottschalk-Hansen Model," IZA Discussion Papers 3618, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-11-30.


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