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Why Is There a Graduate Earnings Premium for Students from Independent Schools?

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  • Naylor, Robin
  • Smith, Jeremy
  • McKnight, Abigail

Abstract

We examine the determinants of occupational earnings of UK 1993 graduates and focus on the influence of the type of school the graduate attended prior to university entrance. For data reasons, we restrict attention to graduates who attended school in England. We estimate that, on average, a male (female) graduate who attended an Independent school receives an earnings premium of 3.1 per cent (3.4 per cent) over and above the earnings of a graduate who attended an LEA school, ceteris paribus. We also find considerable variation across different Independent schools in the size of the graduate earnings premium, especially for males, and show that in the case of males the premium increases with the level of school fees, but is not statistically related to measures of school-level average academic performance. Copyright 2002 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Naylor, Robin & Smith, Jeremy & McKnight, Abigail, 2002. "Why Is There a Graduate Earnings Premium for Students from Independent Schools?," Bulletin of Economic Research, Wiley Blackwell, vol. 54(4), pages 315-339, October.
    • Handle: RePEc:bla:buecrs:v:54:y:2002:i:4:p:315-39
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    Citations

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    Cited by:

    1. Di Pietro, Giorgio, 2010. "The Impact of Degree Class on the First Destinations of Graduates: A Regression Discontinuity Approach," IZA Discussion Papers 4836, Institute of Labor Economics (IZA).
    2. Francis Green & Stephen Machin & Richard Murphy & Yu Zhu, 2012. "The Changing Economic Advantage from Private Schools," Economica, London School of Economics and Political Science, vol. 79(316), pages 658-679, October.
    3. Claire Crawford, 2014. "Socio-economic differences in university outcomes in the UK: drop-out, degree completion and degree class," IFS Working Papers W14/31, Institute for Fiscal Studies.
    4. Gianni De Fraja & Paola Valbonesi, 2009. "Mixed Oligopoly: Old and New," Discussion Papers in Economics 09/20, Division of Economics, School of Business, University of Leicester.
    5. O'Leary, Nigel C. & Sloane, Peter J., 2005. "The Changing Wage Return to an Undergraduate Education," IZA Discussion Papers 1549, Institute of Labor Economics (IZA).
    6. Smith, Jeremy & Naylor, Robin, 2005. "Schooling effects on subsequent university performance: evidence for the UK university population," Economics of Education Review, Elsevier, vol. 24(5), pages 549-562, October.
    7. Claire Crawford & Anna Vignoles, 2014. "Heterogeneity in graduate earnings by socio-economic background," IFS Working Papers W14/30, Institute for Fiscal Studies.
    8. Caroline Elliott & Palitha Konara & Yingqi Wei, 2016. "Competition, Cooperation and Regulatory Intervention Impacts on Independent School Fees," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 23(2), pages 243-262, July.
    9. López-Torres, Laura & Johnes, Jill & Elliott, Caroline & Polo, Cristina, 2021. "The effects of competition and collaboration on efficiency in the UK independent school sector," Economic Modelling, Elsevier, vol. 96(C), pages 40-53.
    10. Massimiliano BRATTI & Luca MANCINI, 2003. "Differences in Early Occupational Earnings of UK Male Graduates by Degree Subject: Evidence from the 1980-1993 USR," Working Papers 189, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    11. Naylor, Robin & Smith, Jeremy & McKnight, Abigail, 2002. "Sheer class? The impact of degree performance on graduate labour market outcomes," Economic Research Papers 269472, University of Warwick - Department of Economics.
    12. Francis Green & Stephen Machin & Richard Murphy & Yu Zhu, 2008. "Competition for private and state school teachers," CEE Discussion Papers 0094, Centre for the Economics of Education, LSE.
    13. Cormac O'Dea & Ian Preston, 2012. "The distributional impact of public spending in the UK," IFS Working Papers W12/06, Institute for Fiscal Studies.
    14. Arnaud Chevalier & Peter Dolton & Ros Levacic, 2004. "School Quality and Effectiveness," Working Papers 200410, School of Economics, University College Dublin.
    15. Robin Naylor & Jeremy Smith, 2004. "Degree performance of Economics students in UK universities: absolute and relative performance in prior qualifications," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(2), pages 250-265, May.

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