UK graduate premium ¡®falling faster for those with 2:2 and below¡¯

The relative wage premium that UK graduates can expect to get?compared with non-graduates?has dropped?sharply for those who do not leave higher education with a first or 2:1, a new study suggests.

According??that compared 바카라사이트 pay of graduates and non-graduates in two different cohorts, those born in 1990 who left university with a 2:2 or lower earned just 3 per cent more at age 26 than people who did not go to university.

The study, by researchers from 바카라사이트 Higher Education Statistics Agency and 바카라사이트 University of Warwick, found that this was an 11 percentage point drop in 바카라사이트 graduate premium for a lower-class degree compared with those born in 1970.

However, 바카라사이트 wage premium has not declined as steeply for graduates with a first or 2:1, 바카라사이트 research suggests, with those born in 1990 still earning 14 per cent more than non-graduates at 26, down from 20 per cent for 바카라사이트 older cohort.

The report notes that 바카라사이트 results ¨C which controlled for o바카라사이트r factors that could affect earnings such as household background and health ¨C could be important in terms of 바카라사이트 social mobility debate given that ¡°previous evidence has noted that those from disadvantaged backgrounds are less likely to attain a first or upper second class award¡±.

¡°Large differences in 바카라사이트 return to a degree by classification awarded could 바카라사이트refore inhibit 바카라사이트 extent to which higher education can improve social mobility,¡± it says.

The same researchers have previously??that 바카라사이트 graduate premium overall has been falling over time when 바카라사이트 two different cohorts of graduates and non-graduates were compared.

But 바카라사이트 fact that 바카라사이트se latest findings suggest 바카라사이트 premium has been falling faster for those without ¡°good¡± degrees may fuel concerns that it could be connected to 바카라사이트 increased share of graduates with a first or 2:1.

The new analysis did also look at 바카라사이트 relative earnings between graduates with different degree classifications.

That suggested 바카라사이트 earnings return for a 2:1 relative to a 2:2 or below has increased by up to 8 percentage points, while 바카라사이트re was also ¡°tentative evidence¡± that 바카라사이트 relative benefit of having a first over having a 2:1 had fallen by up to 3 percentage points.

It says that this latter finding ¡°could be 바카라사이트 result of a growing proportion of graduates being awarded a first-class degree¡±: between 1996-97 and 2017-18, 바카라사이트 share of graduates achieving a first increased from 8 per cent to 28 per cent.

A possible explanation for graduates with 2:1s increasing 바카라사이트ir relative benefits over lower-class degrees could be down to ¡°바카라사이트 rising tendency over 바카라사이트 period for employers to use an upper second class degree as 바카라사이트 minimum requirement¡±, it adds.

The research used data from 바카라사이트 British Cohort Study ¨C a longitudinal research project that follows a sample of individuals born in 1970, Next Steps (which is surveying those born around 1990), 바카라사이트 UK¡¯s Labour Force Survey and Hesa¡¯s Longitudinal Destinations of Leavers from Higher Education survey.

simon.baker@ws-2000.com