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The College Wage Premium and the Expansion of Higher Education in the UK

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Author Info

  • Ian Walker

    (University of Warwick)

  • Yu Zhu

    (University of Kent)

Abstract

This paper reports estimates of the UK “college premium” for young graduates across successive cohorts from large cross section datasets for the UK pooled from 1994 to 2006 - a period when the higher education participation rate increased dramatically. The growth in relative labour demand suggests that graduate supply considerably outstripped demand which ought to imply a fall in the premium. We find no significant fall for men and even a large, but insignificant, rise for women. Quantile regression results reveal a fall in the premium only for men in the bottom quartile of the distribution of unobserved skills.

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File URL: http://www.ucd.ie/geary/static/publications/workingpapers/gearywp200817.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 200817.

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Length: 23 pages
Date of creation: 30 Apr 2008
Date of revision:
Handle: RePEc:ucd:wpaper:200817

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Keywords: human capital; higher education; college premium;

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  1. Why cut university spending?
    by chris dillow in Stumbling and Mumbling on 2010-02-13 12:52:52
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Cited by:
  1. Lindley, Joanne & Machin, Stephen, 2011. "Rising Wage Inequality and Postgraduate Education," IZA Discussion Papers 5981, Institute for the Study of Labor (IZA).
  2. Harmon, Colm P., 2011. "Economic Returns to Education: What We Know, What We Don't Know, and Where We Are Going – Some Brief Pointers," IZA Policy Papers 29, Institute for the Study of Labor (IZA).
  3. Joanne Lindley & Stephen Machin, 2011. "The boom in postgraduate education and its impact on wage inequality," LSE Research Online Documents on Economics 39087, London School of Economics and Political Science, LSE Library.
  4. Joanne Lindley & Stephen Machin, 2012. "The Quest for More and More Education: Implications for Social Mobility," Fiscal Studies, Institute for Fiscal Studies, vol. 33(2), pages 265-286, 06.
  5. Piper, Alan T., 2012. "A Happiness Test of Human Capital Theory," MPRA Paper 43496, University Library of Munich, Germany.
  6. Piper, Alan T., 2012. "Heaven knows I’m miserable now: overeducation and reduced life satisfaction," MPRA Paper 43259, University Library of Munich, Germany.
  7. Fei Peng & Lili Kang, 2013. "Labor Market Institutions and Skill Premiums: An Empirical Analysis on the UK, 1972-2002," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 47(4), pages 959-982, December.
  8. repec:ese:iserwp:2013-15 is not listed on IDEAS
  9. Jan Kleibrink & Maren M. Michaelsen, 2012. "Reaching High: Occupational Sorting and Higher Education Wage Inequality in the UK," Ruhr Economic Papers 0377, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  10. P. Charnoz & É. Coudin & M. Gaini, 2011. "Wage inequalities in France 1976-2004: a quantile regression analysis," Documents de Travail de la DESE - Working Papers of the DESE g2011-06, Institut National de la Statistique et des Etudes Economiques, DESE.

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