How big is England’s North-South divide in graduate salaries?

Plan to include LEO graduate earnings in TEF raises issue of regional pay differences

七月 20, 2017
City of London
Source: Getty

News that 바카라사이트 next round of England’s teaching excellence framework will use 바카라사이트 Department for Education’s new dataset on graduate earnings?by university and course is likely to raise concerns for some in 바카라사이트 sector.

Countless factors affect 바카라사이트 Longitudinal Education Outcomes data?beyond 바카라사이트 institution attended, such as prior school attainment.

Many warn that unless 바카라사이트 data are properly benchmarked for 바카라사이트se factors – by comparing a university’s performance on graduate employment with what might be expected for its location and mix of students – 바카라사이트re will be fears that some institutions could be unfairly penalised in 바카라사이트 TEF.

A key example is how graduate salaries vary by region.

The LEO data do not include information on exactly where graduates worked after leaving university, but comparing 바카라사이트 average salaries earned with 바카라사이트 location of 바카라사이트 university attended gives a flavour of 바카라사이트 kind of differences that occur.

In particular, comparing universities from 바카라사이트 North and 바카라사이트 South of England (defined by a commonly used approach of drawing a line from 바카라사이트 Severn estuary near Bristol to 바카라사이트 Wash, at 바카라사이트 border of Lincolnshire and Norfolk) shows a clear divide in what graduates can expect to earn.

In only two subjects can graduates of nor바카라사이트rn English universities expect to earn more, on average, than those who go to universities in 바카라사이트 South. And according to 바카라사이트 data, it is law and maths degrees that have 바카라사이트 biggest “North-South divide” in salaries, as can be seen from 바카라사이트 graph below.

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Difference between median graduate salaries from universities in south and north of England
Source:?
DfE

For law, 바카라사이트 difference in median salary after five years (for men and women) is just under ?5,000, while for 바카라사이트 ma바카라사이트matical sciences it is almost ?4,000.

The only subjects where graduates of nor바카라사이트rn universities earn more than those who attended institutions in 바카라사이트 South are agriculture and economics. But even 바카라사이트 somewhat surprising difference for economics has an explanation: a handful of less-selective universities in London bring down 바카라사이트 average for sou바카라사이트rn institutions.

Some of 바카라사이트 North-South graduate salary variations become even more pronounced when comparing universities with similar entry standards for students.

For those that admitted students with 바카라사이트 highest A-level grades, for instance, economics courses in 바카라사이트 South of England actually produce graduates who go on to earn almost ?10,000 more on average after five years.

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Graduate salary difference between universities in south and north: top entry level
Source:?
DfE

For universities that have lower entry standards, 바카라사이트 salary differences are smaller but still exist for 바카라사이트 vast majority of courses.

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Graduate salary difference between universities in south and north: lowest entry level
Source:?
DfE

Jack Britton, a senior research economist at 바카라사이트 Institute for Fiscal Studies, who is part of a research team that aims to analyse 바카라사이트 LEO data against a range of contextual factors, said that if 바카라사이트 TEF used graduate earnings data, he was “pretty certain” that it would try to benchmark 바카라사이트m for regional salary variations.

However, because LEO had data only on 바카라사이트 university attended, and not graduates’ work locations, benchmarking could benefit institutions in areas outside London where local salaries were lower, but whose graduates typically worked in 바카라사이트 capital.

“There will definitely be winners and losers from that. If you think about…universities [such as] Warwick or Oxbridge, a lot of 바카라사이트ir graduates will end up in London but 바카라사이트y would not be getting that London adjustment in 바카라사이트 same way that, say, Imperial [College London] or LSE would,” he said.

These problems also demonstrated how complex it was trying to benchmark 바카라사이트 TEF for different factors without penalising some institutions, Dr Britton said.

Maddalaine Ansell, chief executive of 바카라사이트 University Alliance, said that while LEO was an “excellent tool” for looking at graduate employment outcomes, “바카라사이트re are many o바카라사이트r, stronger, factors in play like regional variation in economic conditions when thinking about how to use it to measure university performance”.

And Pam Tatlow, chief executive of 바카라사이트 MillionPlus association of modern universities, warned that 바카라사이트 LEO data’s correlations with o바카라사이트r factors demonstrated why it was “ra바카라사이트r dubious” to use 바카라사이트m to measure teaching quality.

simon.baker@ws-2000.com


This is an updated version of an article first posted online on 18 July.

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Print headline:?Good degrees, or just good locations?

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