Heterogeneities in the returns to degrees: evidence from the British cohort study 1970
Estimates of a high average return to a degree for UK graduates have provided a policy rationale for increasing the share of the costs of higher education borne by UK students over recent decades. We use evidence from a cohort of people born in 1970 to estimate hourly wage returns to a university degree. We analyse the extent of variations around average returns, focussing on heterogeneity in returns by factors such as: gender, degree subject studied, degree class awarded, student ability measures and family background. Among other results, we find substantial evidence of heterogeneous returns to a first degree according to subject area of study and class of degree awarded.
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