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Subject Choice and Earnings of UK Graduates

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  • Chevalier, Arnaud

    () (Royal Holloway, University of London)

Abstract

Using a survey of a cohort of UK graduates, linked to administrative data on higher education participation, this paper investigates the labour market attainment of recent graduates by subject of study. We document a large heterogeneity in the mean wages of graduates from different subjects and a considerably larger one within subject with individuals with the most favourable unobserved characteristics obtaining wages almost twice as large as those with the worst. Moreover, gender differences in wages within subjects are also large. We then simulate a graduate tax to calculate a willingness to pay – in form of tuition fees – to capture these subject wage premia.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5652.

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Length: 36 pages
Date of creation: Apr 2011
Date of revision:
Publication status: published in: Economics of Education Review, 2011, 30 (6), 1187-1201
Handle: RePEc:iza:izadps:dp5652

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Keywords: graduate earnings; tuition fees;

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Cited by:
  1. Colm Harmon, 2011. "Economic Returns to Education: What We Know, What We Don’t Know, and Where We Are Going – Some Brief Pointers," Working Papers 201115, Geary Institute, University College Dublin.
  2. Piper, Alan T., 2012. "A Happiness Test of Human Capital Theory," MPRA Paper 43496, University Library of Munich, Germany.

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