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University Quality and Graduate Wages in the UK

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  • Hussain, Iftikhar

    ()
    (London School of Economics)

  • McNally, Sandra

    ()
    (London School of Economics)

  • Telhaj, Shqiponja

    ()
    (London School of Economics)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4043.

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Length: 26 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4043

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Keywords: returns to education; university quality;

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  1. 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.
  2. Arnaud Chevalier & Gavan Conlon, 2003. "Does it pay to attend a prestigious university?," Working Papers, School Of Economics, University College Dublin 200320, School Of Economics, University College Dublin.
  3. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, Elsevier, vol. 121(1-2), pages 99-124.
  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, University of Chicago Press, vol. 24(3), pages 701-728, July.
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  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. Steve Gibbons & Anna Vignoles, 2009. "Access, Choice and Participation in Higher Education," CEE Discussion Papers, Centre for the Economics of Education, LSE 0101, Centre for the Economics of Education, LSE.
  2. Francis Green & Stephen Machin & Richard Murphy & Yu Zhu, 2010. "The Changing Economic Advantage From Private School," CEE Discussion Papers, Centre for the Economics of Education, LSE 0115, Centre for the Economics of Education, LSE.
  3. Joan Rosselló Villalonga, 2013. "Stratification of Public Universities and Students’ Segregation," Hacienda Pública Española, IEF, IEF, vol. 205(2), pages 99-124, June.
  4. Norman Ireland & Robin A. Naylor & Jeremy Smith & Shqiponja Telhaj, 2009. "Educational returns, ability composition and cohort effects: theory and evidence for cohorts of early-career UK graduates," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 28608, London School of Economics and Political Science, LSE Library.
  5. 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.
  6. 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.
  7. 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).
  8. Ciriaci, Daria & Muscio, Alessandro, 2010. "Does university choice drive graduates’ employability?," MPRA Paper 22527, University Library of Munich, Germany.
  9. Andrea Cammelli, 2012. "Consolidamento ed eterogeneità nelle esperienze di studio dei laureati italiani," Working Papers, AlmaLaurea Inter-University Consortium 49, AlmaLaurea Inter-University Consortium.
  10. Gibbons, Stephen & Vignoles, Anna, 2012. "Geography, choice and participation in higher education in England," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 42(1-2), pages 98-113.
  11. Javier Valbuena, 2012. "A Longitudinal Perspective on Higher Education Participation in the UK," Studies in Economics, Department of Economics, University of Kent 1215, Department of Economics, University of Kent.
  12. Broecke, Stijn, 2012. "University selectivity and earnings: Evidence from UK data on applications and admissions to university," Economics of Education Review, Elsevier, Elsevier, vol. 31(3), pages 96-107.
  13. Walker, Ian & Zhu, Yu, 2010. "Differences by Degree: Evidence of the Net Financial Rates of Return to Undergraduate Study for England and Wales," IZA Discussion Papers 5254, Institute for the Study of Labor (IZA).

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