Advanced Search
MyIDEAS: Login

Differences by Degree: Evidence of the Net Financial Rates of Return to Undergraduate Study for England and Wales

Contents:

Author Info

  • Walker, Ian

    ()
    (Lancaster University)

  • Zhu, Yu

    ()
    (University of Kent)

Abstract

This paper provides estimates of the impact of higher education qualifications on the earnings of graduates in the UK by subject studied. We use data from the recent UK Labour Force Surveys which provide a sufficiently large sample to consider the effects of the subject studied, class of first degree, and postgraduate qualifications. Ordinary Least Squares estimates show high average returns for women that does not differ by subject. For men, we find very large returns for Law, Economics and Management but not for other subjects. Quantile Regression estimates suggest negative returns for some subjects at the bottom of the distribution, or even at the median in Other Social Sciences, Arts and Humanities for men. Degree class has large effects in all subjects suggesting the possibility of large returns to effort. Postgraduate study has large effects, independently of first degree class. A large rise in tuition fees across all subjects has only a modest impact on relative rates of return suggesting that little substitution across subjects would occur. The strong message that comes out of this research is that even a large rise in tuition fees makes little difference to the quality of the investment – those subjects that offer high returns (LEM for men, and all subjects for women) continue to do so. And those subjects that do not (especially OSSAH for men) will continue to offer poor returns. The effect of fee rises is dwarfed by existing cross subject differences in returns.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp5254.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5254.

as in new window
Length: 28 pages
Date of creation: Oct 2010
Date of revision:
Publication status: published in: Economics of Education Review, 2011, 30 (6), 1177-1186
Handle: RePEc:iza:izadps:dp5254

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: college premium; rate of return;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Montmarquette, C. & Cannings, C. & Mahseredjian,S., 1997. "How do Young People Choose College Majors?," Cahiers de recherche 9719, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  2. Nigel C. O’Leary & Peter J. Sloane, 2005. "The Return to a University Education in Great Britain," National Institute Economic Review, National Institute of Economic and Social Research, vol. 193(1), pages 75-89, July.
  3. Iftikhar Hussain & Sandra McNally & Shqiponja Telhaj, 2009. "University quality and graduate wages in the UK," LSE Research Online Documents on Economics 25486, London School of Economics and Political Science, LSE Library.
  4. Eide, Eric & Brewer, Dominic J. & Ehrenberg, Ronald G., 1998. "Does it pay to attend an elite private college? Evidence on the effects of undergraduate college quality on graduate school attendance," Economics of Education Review, Elsevier, vol. 17(4), pages 371-376, October.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Gove vs Cowell: an old dilemma
    by chris dillow in Stumbling and Mumbling on 2013-11-16 11:05:30
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Andrew Mearman & Aspasia Papa & Don Webber, 2014. "Why do Students Study Economics?," Economic Issues Journal Articles, Economic Issues, vol. 19(1), pages 119-147, March.
    • Andrew Mearman & Aspasia Papa & Don J. Webber, 2013. "Why do students study economics?," Working Papers 20131303, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  2. Javier Valbuena, 2012. "A Longitudinal Perspective on Higher Education Participation in the UK," Studies in Economics 1215, Department of Economics, University of Kent.
  3. Kevin Denny & Orla Doyle & Patricia O'Reilly & Vincent O'Sullivan, 2010. "Money, Mentoring and Making Friends: The Impact of a Multidimensional Access Program on Student Performance," Working Papers 201011, School Of Economics, University College Dublin.
  4. MORIKAWA Masayuki, 2012. "Postgraduate Education and Human Capital Productivity in Japan," Discussion papers 12009, Research Institute of Economy, Trade and Industry (RIETI).
  5. Tjaša Bartolj & Aleš Ahcan & Aljoša Feldinb & Sašo Polanec, 2012. "Evolution of Private Returns to Tertiary Education during Transition: Evidence from Slovenia," LICOS Discussion Papers 31412, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  6. Jo Blanden & Lindsey Macmillan, 2014. "Education and Intergenerational Mobility: Help or Hindrance?," DoQSS Working Papers 14-01, Department of Quantitative Social Science - Institute of Education, University of London.
  7. Lindley, Joanne, 2012. "The gender dimension of technical change and the role of task inputs," Labour Economics, Elsevier, vol. 19(4), pages 516-526.
  8. MORIKAWA Masayuki, 2013. "Postgraduate Education, Labor Participation, and Wages: An empirical analysis using micro data from Japan," Discussion papers 13065, Research Institute of Economy, Trade and Industry (RIETI).
  9. Lindsey Macmillan & Claire Tyler & Anna Vignoles, 2013. "Who gets the Top Jobs? The role of family background and networks in recent graduates' access to high status professions," DoQSS Working Papers 13-15, Department of Quantitative Social Science - Institute of Education, University of London.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5254. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.