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University Quality and Graduate Wages in the UK

Author

Listed:
  • Hussain, Iftikhar

    (London School of Economics)

  • McNally, Sandra

    (University of Surrey)

  • Telhaj, Shqiponja

    (London School of Economics)

Abstract

We examine the links between various measures of university quality and graduate earnings in the United Kingdom. We explore the implications of using different measures of quality and combining them into an aggregate measure. Our findings suggest a positive return to university quality with an average earnings differential of about 6 percent for a one standard deviation rise in university quality. However, the relationship between university quality and wages is highly non-linear, with a much higher return at the top of the distribution. There is some indication that returns may be increasing over time.

Suggested Citation

  • Hussain, Iftikhar & McNally, Sandra & Telhaj, Shqiponja, 2009. "University Quality and Graduate Wages in the UK," IZA Discussion Papers 4043, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp4043
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    References listed on IDEAS

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    1. Chevalier, Arnaud & Conlon, Gavan, 2003. "Does it pay to attend a prestigious university?," LSE Research Online Documents on Economics 19477, London School of Economics and Political Science, LSE Library.
    2. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    3. Stacy Berg Dale & Alan B. Krueger, 2002. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1491-1527.
    4. Dan A. Black & Jeffrey A. Smith, 2006. "Estimating the Returns to College Quality with Multiple Proxies for Quality," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 701-728, July.
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    More about this item

    Keywords

    returns to education; university quality;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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