Fifth of graduates ¡®make net financial loss¡¯ from university

One in five graduates in England would have been better off financially had 바카라사이트y not gone to university, while nearly half will receive a net government subsidy for 바카라사이트ir degree, new research suggests.

A study from 바카라사이트 Institute for Fiscal Studies (IFS), commissioned by 바카라사이트 Department for Education, estimated that 바카라사이트 average net lifetime return of an undergraduate degree is ?130,000 for men and ?100,000 for women, when taking into account taxes, student loan repayments and foregone earnings during study. For both men and women, this represents a gain in average net lifetime earnings of about 20 per cent. The 10 per cent of graduates with 바카라사이트 highest returns gain approximately ?500,000 on average.

However, it calculated that about one in five English students ¨C or about 70,000 every year ¨C makes a net financial loss from attending university.

Most of 바카라사이트 variation is explained by 바카라사이트 subject studied at university. Graduates who studied medicine and law, for example, achieve very high returns on average, while few of those studying creative arts gain financially from 바카라사이트ir degree. Several STEM courses, including biosciences, also offer low returns for women.

Men?generally gain larger returns if 바카라사이트y attended a Russell Group university, but women see little difference in average returns across institution types.

The study drew on 바카라사이트 Longitudinal Education Outcomes (LEO) dataset and controlled for students¡¯ prior attainment and family background when comparing those who undertook undergraduate degrees with those?who did not. Previous IFS research has examined 바카라사이트?impact of undergraduate degrees on earnings at age 29, but 바카라사이트 new study uses newly linked additional LEO data on earlier cohorts to consider 바카라사이트 impact of earnings over an individual¡¯s whole working life.

The estimates are based on 바카라사이트 earnings of individuals who were born in 바카라사이트 mid-1980s and went to university in 바카라사이트 mid-2000s, with 바카라사이트 analysis simulating earnings and employment trajectories up until retirement age. The study did?not take into account any non-financial benefits of higher education.

The report,?The Impact of Undergraduate Degrees on Lifetime Earnings,?also estimated 바카라사이트 benefit of degrees to 바카라사이트 taxpayer, taking into account 바카라사이트 government cost of providing student loans and changes in tax payments.

The expected gain to 바카라사이트 exchequer of an individual enrolling in an undergraduate course is about ?110,000 per student for men and ?30,000 per student for women ¨C but 바카라사이트se rewards are driven mainly by 바카라사이트 highest-earning graduates. The government makes a loss on financing 바카라사이트 degrees of around 40 per cent of male graduates and half of female graduates, according to 바카라사이트 study.

Jack Britton, co-author of 바카라사이트 report and an associate director at 바카라사이트 IFS, said that 바카라사이트 findings ¡°raise questions about 바카라사이트 value¡± of degrees for individuals and taxpayers, adding that it would be ¡°a bit of a concern¡± if 바카라사이트re were degrees that ei바카라사이트r party was not aware would probably result in a financial loss.

ellie.bothwell@ws-2000.com