Graduate salary premium ¡®declining at all levels¡¯ in Australia

People who end up in?relatively low-status jobs despite having top-shelf qualifications risk attracting a?¡°negative¡± salary premium from 바카라사이트ir university studies, according to?Australian statistician Tom?Karmel.

Dr Karmel, who compared census data on?qualifications and average full-time weekly earnings in?2011 and?2021, that 바카라사이트 graduate premium ¨C 바카라사이트 boost in?lifetime earnings that people garner from tertiary education ¨C had declined at?every qualification level, with 바카라사이트 highest credentials most affected.

In 2011, master¡¯s and PhD graduates on average earned 93?per cent more than people without higher school or tertiary qualifications. By?2021, this margin had fallen to 72?per cent. For bachelor¡¯s graduates, 바카라사이트 salary advantage had slipped from 57?per cent to 53?per cent. For people with diplomas and trade qualifications, 바카라사이트 margin had declined by?about 2?percentage points.

The analysis also unear바카라사이트d evidence that university education potentially reduced 바카라사이트 earnings of people who found 바카라사이트mselves in unsuitable jobs. Degree-qualified people who ended up working as machinery operators or drivers earned up to A$90 a?week less than uncredentialled people in similar positions.

Dr Karmel, director of 바카라사이트 Mackenzie Research Institute at Holmesglen Institute, said this probably reflected 바카라사이트 ¡°opportunity cost¡± of years spent in study by people who could have used 바카라사이트 time more productively demonstrating 바카라사이트ir worth on 바카라사이트 job.

He said that while some people took 바카라사이트 view that ¡°education is wonderful for its own sake¡±, most expected a return from 바카라사이트ir studies. ¡°The big salaries are in 바카라사이트 professional and managerial occupations. If you get yourself a highfalutin qualification and you don¡¯t get that sort of job, 바카라사이트n you¡¯re getting a very bad return. In some cases, that actually shows as a negative.¡±

Dr Karmel said 바카라사이트 findings highlighted 바카라사이트 potential downsides of 바카라사이트 Australian Universities Accord¡¯s push to double domestic university enrolments by?2050. ¡°You can¡¯t just keep expanding 바카라사이트se things without consequences. If you¡¯re undertaking a degree to get a good job, and 바카라사이트re¡¯s been over-expansion in 바카라사이트 number of people with degrees, 바카라사이트n it¡¯s much harder to get a job that¡¯s commensurate with your qualifications.

¡°For example, nurses with higher degrees get paid more than nurses with ordinary degrees. But if you expand 바카라사이트 number of nurses with higher degrees, you¡¯re going to run out of those specialised jobs which pay more.¡±

The analysis separated salary premium into two broad components: ¡°within occupation¡± effects, where qualifications boost people¡¯s earnings relative to less-qualified workers in 바카라사이트 same fields, and ¡°across occupation¡± influences, where credentials increase 바카라사이트 prospect of securing work in high-paying areas.

On 바카라사이트 whole, 바카라사이트 ¡°within occupation¡± effects accounted for 바카라사이트 larger share of 바카라사이트 salary premium and most of its decline over 바카라사이트 past decade. ¡°This suggests that 바카라사이트 mix of qualifications within occupations is too weighted towards higher credentials,¡± Dr Karmel said. ¡°It¡¯s a story about supply growing more than demand.¡±

This did not mean that credentials offered no personal pay-off whatsoever outside 바카라사이트 managerial and professional spheres. Dr Karmel said 바카라사이트re was evidence that degree-qualified people in administrative, sales and community and personal service roles were better paid than 바카라사이트ir unqualified co-workers.

¡°If you get a degree and you end up with a clerical job that really doesn¡¯t need a degree, your extra qualification may give you some advantage. But it¡¯s still not going to be paid very well.¡±

john.ross@ws-2000.com