education, achievements and labour market outcomes a presentation to the graduate labour market...
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![Page 1: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/1.jpg)
Education, achievements and labour market outcomes
A presentation to the Graduate Labour Market Forum, 15th December 2003, Westminster, London
Peter Elias, University of Warwick
Kate Purcell and Nick Wilton, University of the West of England
![Page 2: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/2.jpg)
Does it pay to go to university?
• How has the premium associated with a first degree changed over the last 15 years?
• What factors are associated with higher earnings?
• What other benefits do we find associated with higher education?
• How are women faring relative to men?
![Page 3: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/3.jpg)
How has the premium associated with a degree changed over the
last 15 years?
• Previously we showed that there was some evidence of a decline in the graduate earnings premium, but still significant and major differences in the rate of growth of earnings of graduates compared with non-graduates
• What kind of earnings growth would we expect?
![Page 4: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/4.jpg)
What is the average real rate of growth of earnings for young degree-
holders and non degree holders?
Use Labour Force Survey (1993-2000) to determine the average annual rate of growth of real earnings between
ages 22 and 29 (full-time gross weekly earnings)
Degree No degree
Men 9.7% p.a. 5.3% p.a.
Women 7.9% p.a. 4.9% p.a.
![Page 5: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/5.jpg)
Average annual rate of growth of real earnings by gender
0
1
2
3
4
5
6
7
8
9
Female Male
1980 Graduate
1995 Graduate
![Page 6: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/6.jpg)
Average annual rate of growth of real earnings by age
0
1
2
3
4
5
6
7
8
31 years or below 32 to 37 years 38 years and older
1980 Graduate
1995 Graduate
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Average annual rate of growth of real earnings by type of institution attended
0
1
2
3
4
5
6
7
8
9
Pre 1992 University Post 1992 University HE College
1980 Graduate
1995 Graduate
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Average annual rate of growth of real earnings by subject studied
0 2 4 6 8 10 12 14 16 18
Education
Arts
Languages
Interdisciplinary
Natural Sciences
Other vocational
Humanities
Medicine & related
Engineering
Social Sciences
Business studies
Maths & Computing
Law
1980 Graduate
1995 Graduate
![Page 9: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/9.jpg)
Distribution of average annual growth rates of real earnings, 1980 graduates and 1995
graduates
0
2
4
6
8
10
12
14
16
18
20
1980 Graduate
1995 Graduate
![Page 10: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/10.jpg)
What factors are associated with higher earnings?
• Conducted a detailed multivariate analysis of the variations in earnings of graduates in full-time employment in 2002/03 (excluding those aged 38 and over)
• Tested for variations associated with social class, entry qualifications, class of degree, post graduate qualifications, type of institution, age, gender, a range of job characteristics and family situation
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What factors are strongly related to variations in earnings?
• Working hours (1% per hour)
• Degree required (18% addition)
• Sector (ICT, banking, business services – 15%)
• Private sector (10% more than public sector)
• Size of firm (10% less if only 1-9 employees)
• Age (10% more per year)
• Disability (10% less)
![Page 12: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/12.jpg)
• Class of degree (12% less for a third class)• Subject studied (Arts -17%, languages -9%, maths &
computing +9% relative to social sciences)• Entry qualifications (<16 UCAS points -6%) • Lives in London and SE (+26% for Inner London)• Postgraduate qualification (see next slides)• SOC(HE) (see next slides)
What factors are strongly related to variations in earnings? (contd.)
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The London premium (relative to graduates working in the rest of the UK
0%
5%
10%
15%
20%
25%
30%
Inner London Outer London South East
![Page 14: Education, achievements and labour market outcomes A presentation to the Graduate Labour Market Forum, 15 th December 2003, Westminster, London Peter Elias,](https://reader030.vdocuments.us/reader030/viewer/2022032523/56649d785503460f94a5a7a4/html5/thumbnails/14.jpg)
Well the City definitely is linked in with financial reward I mean that’s very clear, I mean one of the problems I face now is I could step out of the City into a corporate role but looking at the salaries that are paid, it’s horrendous, you know we’re talking a lifestyle change which I’m not entirely keen to make.
(Freelance finance consultant, graduated in Russian and German from old university, male age 31)
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0
5
10
15
20
25
30
35
Taken short job-related course
since graduating?
Taken u/g degreesince graduating?
Taken postgradcert/dip sincegraduating?
Taken prof. qualprog. sincegraduating?
Taken Mastersdegree sincegraduating?
Taken PhD sincegraduating?
Taken othercourse sincegraduating?
Male
Female
Courses taken since 1995
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Postgraduate qualifications, training and earnings
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Short course(s)Undergraduate
degreePostgraduate
cert. or dip.Professionalqualification
Master'sdegree
PhdProgramme Other
% c
ha
ng
e r
ela
tiv
e t
o t
ho
se
wh
o t
oo
k n
o c
ou
rse
s
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Earnings premium by SOC(HE) - relative to graduates in non graduate jobs
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Traditional graduatejob
Modern graduatejob
New graduate job Niche graduate job
% in
crea
se in
ear
nin
gs
rela
rtiv
e to
no
ng
rad
uat
e jo
bs
Men
Women
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What about social class and gender?
• Social class is not directly associated with variations in earnings – effects are indirect – but, fee-paying school still adds 5% seven years after graduation!
• Type of university attended does have some impact, but only for very small number of institutions
• Gender differences remain (8% more for men)
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In my workplace, my type of work is done...
0
5
10
15
20
25
30
35
40
45
…almost exc bymen
…mainly bymen
…a fairly equalmix
…mainly bywomen
…almost exc bywomen
% o
f yo
un
g m
en
or
wo
me
n i
n f
ull
-tim
e e
mp
loym
en
t
Male
Female
+7%
-8%
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Overall satisfaction with career to date (- those in full-time employment only)
0
10
20
30
40
50
60
70
80
< 9,999 10,000-11,999
12,000-14,999
15,000-17,999
18,000-20,999
21,000-23,999
24,000-26,999
27,000-29,999
30,000-32,999
33,000-35,999
36,000-39,999
40,000-49,999
50,000-59,999
60,000 +
*Combining 'Not very satisfied' and 'dissatisfied'
Very satisfied
Reasonably satisfied
Not satisfied*
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What about the future?
At the point I am at now, if I wasn’t having a baby, I may well have looked or be looking for another job in the next 6 months, purely because I’ve been promoted from within and they never reward you adequately. They never give you the same salary as they would if they recruited externally. I am dissatisfied with my salary at the moment, but I can’t really say anything to the people I work with because I am maternity leave and they’ve known I would be going on maternity leave for quite some time. It’s going to be something I am going to have to address when I get back.
(Merchandising manager working for global corporation, graduated in business & financial services, female age 29)