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Subject Choice and Earnings of UK Graduates

Author

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  • Chevalier, Arnaud

    (Royal Holloway, University of London)

Abstract

Using a survey of a cohort of UK graduates, linked to administrative data on higher education participation, this paper investigates the labour market attainment of recent graduates by subject of study. We document a large heterogeneity in the mean wages of graduates from different subjects and a considerably larger one within subject with individuals with the most favourable unobserved characteristics obtaining wages almost twice as large as those with the worst. Moreover, gender differences in wages within subjects are also large. We then simulate a graduate tax to calculate a willingness to pay – in form of tuition fees – to capture these subject wage premia.

Suggested Citation

  • Chevalier, Arnaud, 2011. "Subject Choice and Earnings of UK Graduates," IZA Discussion Papers 5652, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5652
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    Keywords

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    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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