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Sheer Class? The Extent and Sources of Variation in the UK Graduate Earnings Premium

Author

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  • Abigail McKnight
  • Robin Naylor
  • Jeremy Smith

Abstract

In this paper, we use the individual-level USR data for the whole population of 1993 leavers from the ¿old¿ universities of the UK to investigate the determinants of graduate occupational earnings. Among other results, we find that there are significant differences in the occupational earnings of leavers, according to: university attended, subject studied, degree class awarded, and Social Class of family background, ceteris paribus. Our results suggest that there is likely to be significant variation around the average rate of return to a first degree.

Suggested Citation

  • Abigail McKnight & Robin Naylor & Jeremy Smith, 2002. "Sheer Class? The Extent and Sources of Variation in the UK Graduate Earnings Premium," CASE Papers 054, Centre for Analysis of Social Exclusion, LSE.
    • Handle: RePEc:cep:sticas:054
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    File URL: https://sticerd.lse.ac.uk/dps/case/cp/CASEpaper54.pdf
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    1. repec:cep:sticas:/123 is not listed on IDEAS
    2. Jacek Liwiński & Emilia Bedyk, 2016. "Does it pay to invest in the education of children?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 47.
    3. V. Vandenberghe & O. Debande, 2007. "Deferred and Income-contingent Tuition Fees: An Empirical Assessment using Belgian, German and UK Data," Education Economics, Taylor & Francis Journals, vol. 15(4), pages 421-440.
    4. Azad, Abul Kalam & Emran, Sheikh Jafar, 2018. "Ending High, Starting High: Job Placement of Economics Graduates of Dhaka University," MPRA Paper 103891, University Library of Munich, Germany, revised 15 Mar 2019.
    5. Vandenberghe, Vincent, 2007. "Family income and tertiary education attendance across the EU: an empirical assessment using sibling data," LSE Research Online Documents on Economics 6214, London School of Economics and Political Science, LSE Library.
    6. repec:ucn:wpaper:10197/1104 is not listed on IDEAS
    7. Emilia Bedyk & Jacek Liwiński, 2016. "The wage premium from parents’ investments in the education of their children in Poland," Working Papers 2016-14, Faculty of Economic Sciences, University of Warsaw.
    8. Vincent Vandenberghe, 2007. "Family Income and Tertiary Education Attendance across the EU: An empirical assessment using sibling data," CASE Papers case123, Centre for Analysis of Social Exclusion, LSE.

    More about this item

    Keywords

    graduate earnings; degree class; subject;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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