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How much does degree choice matter?

Author

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  • Britton, Jack
  • van der Erve, Laura
  • Belfield, Chris
  • Vignoles, Anna
  • Dickson, Matt
  • Zhu, Yu
  • Walker, Ian
  • Dearden, Lorraine
  • Sibieta, Luke
  • Buscha, Franz

Abstract

We use a large and novel administrative dataset to investigate returns to different university ‘degrees’ (subject-institution combinations) in the United Kingdom. Conditioning on a rich set of background characteristics, we find substantial variation in returns across degrees with similar selectivity levels, suggesting students’ degree choices matter a lot for later-life earnings. Returns increase with university selectivity much more at the top of the selectivity distribution than further down, and much more for some subjects than others. Returns are poorly correlated with observable degree characteristics other than selectivity, which could have important implications for student choices and the incentives of universities.

Suggested Citation

  • Britton, Jack & van der Erve, Laura & Belfield, Chris & Vignoles, Anna & Dickson, Matt & Zhu, Yu & Walker, Ian & Dearden, Lorraine & Sibieta, Luke & Buscha, Franz, 2022. "How much does degree choice matter?," Labour Economics, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:labeco:v:79:y:2022:i:c:s0927537122001580
    DOI: 10.1016/j.labeco.2022.102268
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    1. Boero, Gianna & Nathwani, Tej & Naylor, Robin & Smith, Jeremy, 2021. "Graduate Earnings Premia in the UK : Decline and Fall?," The Warwick Economics Research Paper Series (TWERPS) 1387, University of Warwick, Department of Economics.
    2. Costas-Fernández, Julián & Morando, Greta & Holford, Angus, 2023. "The effect of foreign students in higher education on native students’ outcomes," European Economic Review, Elsevier, vol. 160(C).

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    More about this item

    Keywords

    Returns to education; Degree choice;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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