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Different returns to different degrees? Evidence from the British Cohort Study 1970

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  • Bratti, Massimiliano
  • Naylor, Robin
  • Smith, Jeremy

Abstract

As in many other countries, government policy in the UK has the objective of raising the participation rate of young people in higher education, while also increasing the share of the costs of higher education borne by students themselves. A rationale for the latter element comes from evidence of a high private return to university undergraduate degrees. However, much of this evidence pre-dates the rapid expansion in the graduate population. In the current paper, we use evidence from a cohort of people born in 1970 to estimate hourly wage returns to a university degree. Among other results, we Önd (i) that compared to an earlier 1958 birth cohort the average returns to a Örst degree for men changed very little, while the return for women declined substantially and (ii) substantial evidence of di§erences in returns to a Örst degree according to subject area of study and class of degree awarded.

Suggested Citation

  • Bratti, Massimiliano & Naylor, Robin & Smith, Jeremy, 2006. "Different returns to different degrees? Evidence from the British Cohort Study 1970," Economic Research Papers 269754, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269754
    DOI: 10.22004/ag.econ.269754
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    1. Trash research from Universities UK
      by chris dillow in Stumbling and Mumbling on 2007-02-07 19:12:07
    2. Gove vs Cowell: an old dilemma
      by chris dillow in Stumbling and Mumbling on 2013-11-16 17:05:30

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    1. Freier, Ronny & Schumann, Mathias & Siedler, Thomas, 2015. "The earnings returns to graduating with honors — Evidence from law graduates," Labour Economics, Elsevier, vol. 34(C), pages 39-50.
    2. Pamela Lenton, 2016. "Staying-on after twenty-one: the returns to postgraduate education," Working Papers 2016004, The University of Sheffield, Department of Economics.

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    More about this item

    Keywords

    Financial Economics; Teaching/Communication/Extension/Profession;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • I2 - Health, Education, and Welfare - - Education

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