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The College Wage Premium and the Expansion of Higher Education in the UK

Author

Listed:
  • Ian Walker

    (University of Warwick)

  • Yu Zhu

    (University of Kent)

Abstract

This paper reports estimates of the UK “college premium” for young graduates across successive cohorts from large cross section datasets for the UK pooled from 1994 to 2006 - a period when the higher education participation rate increased dramatically. The growth in relative labour demand suggests that graduate supply considerably outstripped demand which ought to imply a fall in the premium. We find no significant fall for men and even a large, but insignificant, rise for women. Quantile regression results reveal a fall in the premium only for men in the bottom quartile of the distribution of unobserved skills.

Suggested Citation

  • Ian Walker & Yu Zhu, 2008. "The College Wage Premium and the Expansion of Higher Education in the UK," Working Papers 200817, Geary Institute, University College Dublin.
    • Handle: RePEc:ucd:wpaper:200817
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    File URL: https://geary.ucd.ie/workingpapers/workingpapers/gearywp200817.pdf
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    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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