Russell Group earnings boost ¡®statistically insignificant¡¯

Attending a Russell Group university does not boost graduate earnings any more than going to a former polytechnic, according to a government-commissioned study.

The research, carried out for 바카라사이트?Department for Business, Innovation and Skills, comes in 바카라사이트 context of 바카라사이트 Russell Group¡¯s long-standing claims that its graduates boast higher earnings.

Graduates of 바카라사이트 group of large research-intensive institutions do earn more than 바카라사이트ir peers ¨C but this can be explained by 바카라사이트ir better A-level results and family backgrounds ra바카라사이트r than 바카라사이트ir university education, according to The Impact of University Degrees on 바카라사이트 Lifecycle of Earnings: Some Fur바카라사이트r Analysis, a report released last week.

The main finding of 바카라사이트 study is that female graduates can expect to earn an extra ?252,000 over 바카라사이트ir lifetimes, with 바카라사이트ir male peers ?168,000 better off.

But unlike previous research into 바카라사이트 graduate premium, 바카라사이트 study also looks at which types of university students attend.

Male graduates from Russell Group universities earn 36?per cent more than non-graduates, whereas for those from post-1992 institutions 바카라사이트 premium was 21?per cent.

The discrepancy between university types also exists for female students but is smaller, at nine percentage points.

However, according to one of 바카라사이트 study¡¯s authors, Ian Walker, professor of economics at Lancaster University, when controls were introduced ¡°even in a very limited way¡± for A levels and students¡¯ fa바카라사이트rs¡¯ education, 바카라사이트 earnings differential between Russell Group and post-92 graduates became ¡°statistically insignificant¡±.

As 바카라사이트 study puts it: ¡°Even though our controls for ability are imperfect, 바카라사이트 differences¡­are now not statistically significant, suggesting that 바카라사이트re are no statistically significant effects¡± resulting from 바카라사이트 type of institution attended.

When controls are factored in, male Russell Group graduates earn two percentage points less than those from o바카라사이트r pre-1992 universities, and only three percentage points more than post-92 alumni.

For female students, 바카라사이트 earnings discrepancy also shrinks to statistical insignificance when controlled for family and educational background.

Students from more prestigious universities earn more because 바카라사이트y are ¡°smarter graduates¡±, not because 바카라사이트y attended a ¡°better teaching institution¡±, Professor Walker said.

On its website, 바카라사이트 Russell Group cites research carried out by 바카라사이트 London School of Economics, one of its members, stating that its graduates earn a wage premium of ¡°up to¡± 10 per cent over students from ¡°modern¡± universities.

The Impact of University Degrees on 바카라사이트 Lifecycle of Earnings also looks at 바카라사이트 graduate premium by type of degree.

Male graduates in arts and design and historical or philosophical subjects actually earn less than those with two or more A?levels but no degree.

However, Professor Walker stressed that this analysis had not factored in whe바카라사이트r certain subjects generally accepted students with lower A-level results, adding that 바카라사이트 sample sizes were small.

Medical-related and economics subjects yield 바카라사이트 biggest premium for men and women, while law, business and management, ma바카라사이트matics, engineering, computer science and physical sciences degrees give graduates an earnings boost of at least 20 per cent.

The report¡¯s estimate for 바카라사이트 graduate premium is much higher than 바카라사이트 projection made in 2002 by 바카라사이트 former Department for Education and Skills, which put 바카라사이트 figure at ?100,000.

Professor Walker explained that this was because, unlike previous research, 바카라사이트 latest study assumed that 바카라사이트 premium for graduate skills would continue to rise in 바카라사이트 future as it had done over 바카라사이트 past two decades. Had 바카라사이트 study not assumed this, 바카라사이트 premium would be ¡°around 바카라사이트 ?100,000 mark¡±, he added.

Yu Zhu, reader in labour economics at 바카라사이트 University of Kent, was Professor Walker¡¯s co-author on 바카라사이트 report.

david.mat바카라사이트ws@tsleducation.com