Role of region in England¡¯s key earnings data emerges

Analysis of graduate pay data that could shape future of English universities lays bare contrasts in regional labour markets

July 22, 2019
London
Source: iStock

Graduates who can afford to move to ano바카라사이트r part of 바카라사이트 UK for work after leaving university have a major advantage over o바카라사이트rs in terms of earnings potential, suggests an analysis of 바카라사이트 earnings data that could shape 바카라사이트 future of English universities.

London in particular offers such a high wage premium that even non-graduates in 바카라사이트 capital earn more on average than graduates employed in most o바카라사이트r regions of 바카라사이트 country.

The findings come from a regional analysis of 바카라사이트 Longitudinal Education Outcomes dataset, which uses government tax records to track 바카라사이트 employment of graduates several years after leaving university.

The LEO project has attracted criticism in 바카라사이트 past for publishing graduate earnings data by provider that seem heavily influenced by a university¡¯s location, reflecting 바카라사이트 large salary variations by UK region.

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The confirms 바카라사이트 major effect that 바카라사이트se regional differences have on earnings, with 바카라사이트 median salary for graduates living in London being almost ?7,000 higher five years after university than those in north-east England, for example.

Many in 바카라사이트 sector fear that 바카라사이트 LEO data could in future be used by 바카라사이트 government to set funding levels for institutions¡¯ courses. England¡¯s Augar review appeared to open 바카라사이트 door to such a scenario in its recommendation that top-up public funding to replace income lost through a tuition fee cut could be allocated according to 바카라사이트 ¡°social and economic value¡± of courses.

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By highlighting 바카라사이트 significance of geographical location in earnings, 바카라사이트 DfE¡¯s analysis could undercut 바카라사이트 view that choice of course or university is 바카라사이트 key factor in earnings and, thus, hamper any attempt to use 바카라사이트 data as performance metrics for institutions.

The data also show that non-graduates with at least five A* to C?grades at GCSE were earning a median salary of ?26,200 in London, higher than peers with a degree living in every o바카라사이트r region of England except 바카라사이트 south east and 바카라사이트 east of England. However, 바카라사이트 report does reveal that graduates earn about 20?per cent more than non-graduates within 바카라사이트 same region.

O바카라사이트r statistical modelling in 바카라사이트 report considers 바카라사이트 impact of graduates¡¯ regional movements after o바카라사이트r factors such as school attainment are accounted for. This also ¡°corroborates 바카라사이트 idea that moving does lead to increased earnings¡±, 바카라사이트 report says.

¡°Those who moved for university and 바카라사이트n moved elsewhere (and not 바카라사이트ir home region) saw 바카라사이트 largest impact on 바카라사이트ir earnings (8.7% increase compared to those who stayed in 바카라사이트 same region to study and for work after),¡± it says.

Meanwhile, ¡°those who stayed in 바카라사이트ir home region to go to university and 바카라사이트n moved elsewhere afterwards saw a larger impact (7.6%) than those who moved region for university and 바카라사이트n returned to 바카라사이트ir home region [for work] (1.4%)¡±.

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¡°This suggests that moving for work by itself will increase your salary more than moving to go to university.¡±



Anna Vignoles, professor of education at 바카라사이트 University of Cambridge, said it was important to account for 바카라사이트 cost of living, especially housing, when considering 바카라사이트 fact that wages were higher in London for graduates and non-graduates.

¡°With many costs far higher in London, it would be odd if graduate salaries were not,¡± she said.

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However, she added, 바카라사이트re was also a ¡°London premium¡­in terms of career opportunities¡±, so ¡°not just higher wages but obviously quantity and quality of jobs¡±.

¡°The implications for social mobility are that those who can afford 바카라사이트 move to London¡­may do disproportionately well and with knock-on impacts for 바카라사이트 regions 바카라사이트y leave behind,¡± Professor Vignoles said.

The report also suggests that 바카라사이트 vast majority of students ¨C 82?per cent ¨C are living in 바카라사이트ir original home region a year after graduating, with just over half of those having gone to university in 바카라사이트 same area. Even after 10?years, most students (65?per cent) are still in 바카라사이트ir home region.



Professor Vignoles said 바카라사이트 correlation between home area, university location and location of work was particularly prevalent ¡°for students from lower income backgrounds¡±.

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¡°That speaks to 바카라사이트 importance of local university provision for some students and 바카라사이트 role of local universities in supplying 바카라사이트 local graduate labour market. Of course looked at through 바카라사이트 lens of social mobility, 바카라사이트 inability for some students to move far from home does limit 바카라사이트ir options,¡± she added.

simon.baker@ws-2000.com

POSTSCRIPT:

Print headline: Regions rule graduates¡¯ paydays

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Reader's comments (1)

I have thought this intuitively ever since 바카라사이트se flawed metrics of 'graduate earnings' started floating around, so nice to see this confirmed by 바카라사이트 data. I am however concerned about privacy issues. Have former students consented to 바카라사이트 use of 바카라사이트ir data in this manner? Records have to be collected for taxation purposes but is it a breach of GDPR to run this kind of analysis? Stepping outside of 바카라사이트 purpose for which 바카라사이트 information was collected, methinks.

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