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The Labour Market Returns to Graduation: Reconciling Administrative and Survey Data Estimates

Author

Listed:
  • Adamecz, Anna

    (University College London)

  • Dickson, Matt

    (University of Bath)

  • Shure, Nikki

    (University College London)

Abstract

This paper contributes to the literature on the earnings returns to university graduation. Recent evidence using administrative earnings data from England suggests a zero return to graduation for men and positive returns to graduation for women in annual earnings at age 26. We show that once hours worked are taken into account - typically not available in administrative tax data - returns to graduation are zero for women too. Graduate women work more hours than comparable non-graduate women, explaining their annual earnings return, but in terms of hourly wages, average returns to graduation at this early career stage are around zero for both sexes. This highlights the importance of using both survey and administrative data sources when estimating the returns to university graduation.

Suggested Citation

  • Adamecz, Anna & Dickson, Matt & Shure, Nikki, 2024. "The Labour Market Returns to Graduation: Reconciling Administrative and Survey Data Estimates," IZA Discussion Papers 16800, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16800
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    References listed on IDEAS

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    1. Justine S. Hastings & Christopher A. Neilson & Seth D. Zimmerman, 2013. "Are Some Degrees Worth More than Others? Evidence from college admission cutoffs in Chile," NBER Working Papers 19241, National Bureau of Economic Research, Inc.
    2. Massimo Anelli, 2020. "The Returns to Elite University Education: a Quasi-Experimental Analysis," Journal of the European Economic Association, European Economic Association, vol. 18(6), pages 2824-2868.
    3. Britton, Jack & van der Erve, Laura & Belfield, Chris & Vignoles, Anna & Dickson, Matt & Zhu, Yu & Walker, Ian & Dearden, Lorraine & Sibieta, Luke & Buscha, Franz, 2022. "How much does degree choice matter?," Labour Economics, Elsevier, vol. 79(C).
    4. Elsayed, Ahmed & Shirshikova, Alina, 2023. "The Women Empowering Effect of Higher Education," IZA Discussion Papers 16069, Institute of Labor Economics (IZA).
    5. Wooldridge, Jeffrey M., 2007. "Inverse probability weighted estimation for general missing data problems," Journal of Econometrics, Elsevier, vol. 141(2), pages 1281-1301, December.
    6. Elsayed, Ahmed & Shirshikova, Alina, 2023. "The women-empowering effect of higher education," Journal of Development Economics, Elsevier, vol. 163(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    returns to graduation; university; gender differences; survey data;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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