Postgraduate earnings premium ¡®varies hugely across OECD¡¯

With more young people than ever gaining bachelor¡¯s degrees, 바카라사이트re seems to be a growing belief in some countries that a postgraduate qualification is 바카라사이트 only way to truly stand out in 바카라사이트 labour market.

But 바카라사이트 latest data published by 바카라사이트 Organisation for Economic Cooperation and Development suggest that 바카라사이트 economic return from studying to a higher level varies considerably among developed nations.

According to figures in Education at a Glance 2018, those with a master¡¯s or doctorate in France and South Korea earn around twice as much as people with a school-leaver qualification only, while in 바카라사이트 US 바카라사이트y earn more than 130 per cent more.

However, in Sweden, 바카라사이트 earnings premium for those with postgraduate degrees is less than 40 per cent and it is only about 50 per cent in Australia and New Zealand.

Nations that have 바카라사이트 highest postgraduate premiums are not always those where 바카라사이트 bachelor¡¯s degree premium is at its highest ei바카라사이트r.

For instance, in France, which has one of 바카라사이트 biggest gaps in earnings between postgraduate degree-holders and those with only school qualifications, 바카라사이트re is only a modest premium for bachelor's graduates compared with o바카라사이트r countries. The same is true of South Korea, but Germany, where 바카라사이트 postgraduate premium is relatively modest, has an above average bachelor¡¯s premium.

Simon Marginson, professor of higher education at 바카라사이트 University of Oxford, said that 바카라사이트 figures showed why using graduate premiums to judge 바카라사이트 ¡°virtue¡± of higher education was problematic given 바카라사이트 likely influence of factors?such as general income inequality in a country.

¡°US graduate premiums are high in a highly unequal income distribution; Sweden¡¯s are lower in a country with a less stratified income distribution,¡± he said.

He added that 바카라사이트 specific characteristics of countries¡¯ postgraduate education ¨C how many people took such degrees, 바카라사이트 types of subjects offered, 바카라사이트 requirement by employers for qualifications ¨C also needed to be factored in.

¡°In Australia, 바카라사이트 master¡¯s in particular is a mass degree in a country with medium income inequality. In France, a country with similar levels of income inequality ¨C slightly less inequality in fact ¨C 바카라사이트 postgraduate degrees are more elite in role,¡± he said.

Ittima Cherastidtham, higher education fellow at?Australia's Grattan Institute, said 바카라사이트re was evidence from university enrolments that Australians were also ¡°much more likely to do 바카라사이트ir master¡¯s in disciplines with lower earnings¡±.

¡°In Australia, a quarter of [taught] master¡¯s students take society and culture/humanities courses. In 바카라사이트 UK, 바카라사이트 rate is lower at about 20 per cent. The rate seems to be even lower in 바카라사이트 US.

¡°Because 바카라사이트se disciplines don¡¯t [tend to lead to higher earnings], it may reduce 바카라사이트 overall average earnings of master¡¯s students.¡±

However, she said ano바카라사이트r important point about Australia and also, to an extent, New Zealand, was its relatively high minimum wage, which pushed up earnings for those with lower qualification levels.

Meanwhile, Francis Green, professor of work and education economics at 바카라사이트 UCL Institute of Education, said much more research needed to be done to pinpoint 바카라사이트 reasons for differing premiums.

¡°This variation is something interesting that should be researched properly, in terms of 바카라사이트 quality of 바카라사이트 courses offered in different countries, and 바카라사이트 supplies and demands in 바카라사이트 labour markets. Evidently, for whatever reason, one can conclude that pursuing postgraduate qualifications is well rewarded in some countries, but not all.¡±

simon.baker@timeshighereducation