HOW DOES THE RETURN TO A DEGREE VARY BY CLASS OF AWARD?

Key takeaways

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Bibliography: Boero, G., Cook, D., Nathwani, T., Naylor, R., Smith, J., 2020. HOW DOES THE RETURN TO A DEGREE VARY BY CLASS OF AWARD? Higher Education Statistics Agency.

Authors:: Gianna Boero, Dan Cook, Tej Nathwani, Robin Naylor, Jeremy Smith

Collections:: UCL BCS Dump

First-page: 3

Abstract

The aim of this briefing paper is to extend the analysis conducted in Boero et al. (2019) by exploring how the financial return to a first degree1 varies by classification awarded, based on earnings around age 26. We examine how returns have changed over a period of time in which both higher education participation and the proportion of graduates achieving at least an upper second class degree has risen. Initially, we distinguish between graduates with a first or upper second class degree and those who attained a lower second class degree or below.2 This reflects a traditional tendency among employers to condition recruitment on graduates being awarded a minimum of an upper second class degree.3 While the percentage of upper second class degrees awarded has remained relatively constant in the last few decades, there has been continued growth in the proportion of graduates qualifying with first class degrees and an offsetting fall in the proportion attaining lower second class degrees or below. Consequently, we additionally differentiate between those with a first class degree and individuals holding an upper second class award, which enables us to explore how the return by separ

Citations

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Reading notes

Imported on 2024-05-07 21:32

⭐ Important

& While the percentage of upper second class degrees awarded has remained relatively constant in the last few decades, there has been continued growth in the proportion of graduates qualifying with first class degrees and an offsetting fall in the proportion attaining lower second class degrees or below. (p. 3)
& The key findings from our empirical work are as follows. In the BCS, we observe an average return to a first degree at age 26 of 17%, once we account for other factors that could impact both higher education participation and earnings.5 When analysing how this return differs depending on performance at university, we find that for graduates who achieved a first or upper second class award, the return is 20%. For those who attained a lower second class degree or below, we observe a return of 14%. (p. 4)