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Reaching High: Occupational Sorting and Higher Education Wage Inequality in the UK

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  • Jan Kleibrink
  • Maren M. Michaelsen

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Abstract

We analyse wage differentials between Higher Education graduates in the UK, differentiating between polytechnic and university graduates. Polytechnic graduates earned on average lower wages than university graduates prior to the UK Further and Higher Education Act of 1992. The reform changed the system of Higher Education by giving all polytechnics university status. We show that wage differentials can be explained by a glass ceiling which prevented polytechnic graduates from reaching managerial and professional occupations. After the reform, they overtook graduates of traditional universities in terms of average wages.

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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0377.

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Length: 19 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:rwi:repape:0377

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Keywords: Higher education; wage differentials; occupational sorting; glass ceiling; United Kingdom;

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  1. Ian Walker & Yu Zhu, 2008. "The College Wage Premium and the Expansion of Higher Education in the UK," Studies in Economics 0809, Department of Economics, University of Kent.
  2. Iftikhar Hussain & Sandra McNally & Shqiponja Telhaj, 2009. "University Quality and Graduate Wages in the UK," CEE Discussion Papers 0099, Centre for the Economics of Education, LSE.
  3. Joseph G. Altonji & Charles R. Pierret, 1997. "Employer Learning and Statistical Discrimination," NBER Working Papers 6279, National Bureau of Economic Research, Inc.
  4. Jo Blanden & Stephen Machin, 2004. "Educational Inequality and the Expansion of UK Higher Education," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(2), pages 230-249, 05.
  5. Bauer, Thomas K. & Haisken-DeNew, John P., 2001. "Employer learning and the returns to schooling," Labour Economics, Elsevier, vol. 8(2), pages 161-180, May.
  6. Belfield, C. R. & Fielding, A., 2001. "Measuring the relationship between resources and outcomes in higher education in the UK," Economics of Education Review, Elsevier, vol. 20(6), pages 589-602, December.
  7. Delaney, Liam & Harmon, Colm P. & Redmond, Cathy, 2011. "Parental Education, Grade Attainment and Earnings Expectations among University Students," IZA Discussion Papers 5646, Institute for the Study of Labor (IZA).
  8. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
  9. Nigel C. O'Leary & Peter J. Sloane, 2011. "The Wage Premium For University Education In Great Britain During A Decade Of Change," Manchester School, University of Manchester, vol. 79(4), pages 740-764, 07.
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