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

  • Ian Walker
  • Yu Zhu

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. Copyright © The editors of the "Scandinavian Journal of Economics" 2008 .

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Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 110 (2008)
Issue (Month): 4 (December)
Pages: 695-709

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Handle: RePEc:bla:scandj:v:110:y:2008:i:4:p:695-709
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