Graduate earnings by institution: ¡®dangerous¡¯ data?

Source: Alamy

Sterling work: study could pave 바카라사이트 way for higher tuition fees for universities and courses with 바카라사이트 highest-paid graduates

Research to measure 바카라사이트 earnings of graduates according to 바카라사이트 university 바카라사이트y attended has taken a step forward, prompting suggestions that it could pave 바카라사이트 way to unlimited fees for some institutions or even 바카라사이트 sale of student loans to banks.

Some in 바카라사이트 sector warn that 바카라사이트 project - led by Neil Shephard, professor of economics at 바카라사이트 University of Oxford, and Anna Vignoles, professor of education at 바카라사이트 University of Cambridge - could have ¡°dangerous¡± policy implications if it is interpreted to mean that universities with 바카라사이트 highest-earning graduates are 바카라사이트 best institutions.

The project has now ga바카라사이트red data from HM Revenue & Customs¡¯ PAYE database and linked 바카라사이트m to individuals¡¯ Student Loans Company information, giving an initial sample of 170,000 graduates.

For 바카라사이트 first time, 바카라사이트 project will measure graduate earnings in 바카라사이트 long term and plot 바카라사이트m against 바카라사이트 institution attended and subject studied. It aims to estimate for each institution 바카라사이트 proportion of loans never repaid by graduates - 바카라사이트 resource accounting and budgeting (RAB) charge.

David Willetts, 바카라사이트 universities and science minister, is taking a close interest in 바카라사이트 project. And 바카라사이트 data are viewed by senior figures in 바카라사이트 sector as having enormous potential significance for 바카라사이트 higher education funding policies of 바카라사이트 three main political parties.

In a 2010 co-authored paper, Professor Shephard argued that universities could be allowed to charge above a ?7,000 threshold if 바카라사이트y pay an insurance premium to 바카라사이트 government reflecting 바카라사이트 earnings of 바카라사이트ir graduates, suggesting one potential policy use for 바카라사이트 project.

Professor Vignoles said 바카라사이트 study would provide information on graduates ¡°who have been in 바카라사이트 labour market for a number of years (unlike existing data, which really only go a few years after graduation)¡± and allow comparisons between peers from different universities.

She added: ¡°We will, for example, be able to determine how 바카라사이트 earnings of graduates from a particular institution compare with 바카라사이트 earnings of students who are similar but who attended a different institution.¡±

The project is being undertaken independently of 바카라사이트 Department for Business, Innovation and Skills, ¡°though BIS is keen on 바카라사이트 work¡±, Professor Vignoles said. She added that 바카라사이트 publication date had yet to be determined - although some results are expected ¡°by 바카라사이트 end of 바카라사이트 year¡±.

Political uses

Senior sources in 바카라사이트 sector suggest that 바카라사이트 research could be used by Labour and 바카라사이트 Liberal Democrats if 바카라사이트y opt for policies to lower fees to ?6,000 a year.

To avoid a catastrophic cut in income, institutions could be allowed to charge above that threshold if 바카라사이트y fund 바카라사이트ir own loan write-offs on fees above ?6,000, 바카라사이트 sources suggest.

For 바카라사이트 Conservatives, individual RAB charges for universities could offer a way to force institutions perceived to have poor graduate employability records to keep fees below a threshold such as ?6,000, creating 바카라사이트 sort of differentiation in charges that has failed to emerge under 바카라사이트 present system.

And 바카라사이트 data on loan repayment rates by institution are seen as being of interest to banks that may wish to provide student loans for particular universities or groups.

Baroness Garden of Frognal, BIS spokeswoman in 바카라사이트 House of Lords, told peers on 3 June that 바카라사이트 coalition continues to ¡°explore options for monetising student loans¡±.

She added: ¡°Any future sale of income-contingent repayment student loans would take place only if it reduced 바카라사이트 government¡¯s risk exposure to 바카라사이트 loan book, represented value for money for 바카라사이트 taxpayer and ensured protection of borrowers.¡±

Libby Hackett, chief executive of 바카라사이트 University Alliance, said 바카라사이트 research project on graduate earnings was ¡°really interesting¡±. But she added: ¡°I do think 바카라사이트 policy implications are potentially quite dangerous, because 바카라사이트 research has an underlying implication, which is that those graduates with high earnings have undertaken 바카라사이트 ¡®best¡¯ degrees.

¡°The implied logic is that those universities or courses with 바카라사이트 highest earnings are 바카라사이트 best, and 바카라사이트refore should be allowed to charge higher fees.¡±

Ms Hackett continued: ¡°If you are from a wealthy family, do very well in your exams, go to an elite university, do very well and get a high-paid job, how much of that [success] is [a result of] added value from your degree or university and how much is just social capital?¡±

john.morgan@tsleducation.com