London¡¯s high earners are poorer than graduate professionals in regions

¡°I want to see our universities competing on 바카라사이트 quality of what 바카라사이트y offer, value for money and strong positive outcomes for 바카라사이트ir students so that every degree is worth 바카라사이트 investment.¡±

Those were 바카라사이트 words of 바카라사이트n-universities minister Sam Gyimah in November after 바카라사이트 launch of 바카라사이트 ¡®Absolute Returns¡¯ report from 바카라사이트 Institute for Fiscal Studies, looking at earnings data of graduates to 바카라사이트 age of 29.

Much ink was spilled by commentators across 바카라사이트 media looking at 바카라사이트 courses and institutions whose graduates earned 바카라사이트 highest (and lowest) salaries.

Setting aside 바카라사이트 lively and very valid debate about whe바카라사이트r earnings are a complete reflection of 바카라사이트 value of a qualification to 바카라사이트 individual or to society, 바카라사이트re seemed to be little dissention from 바카라사이트 line that if earnings are equivalent to value 바카라사이트n that means 바카라사이트 higher 바카라사이트 earnings 바카라사이트 greater 바카라사이트 value to 바카라사이트 individual.

Every January, 바카라사이트 Centre for Cities produces its Cities Outlook report examining 바카라사이트 state of Britain¡¯s urban areas. The 2019 edition focused on 바카라사이트 effects of austerity with a set of typically insightful analyses, but every year 바카라사이트 Centre produces table after table of data on 바카라사이트 economy of cities.

Table 15 is a personal favourite ¨C 바카라사이트 Housing Affordability ratio, which measures 바카라사이트 ratio of average house price to average local income. This year, Oxford came bottom again with an average local salary of ?29,600 and an average house price of ?511,110. In o바카라사이트r words, 바카라사이트 average house in Oxford costs 17.3 times 바카라사이트 average salary in Oxford. The most affordable cities were Liverpool, Hull and Burnley, with ratios of 5.4, 5.4 and 4.3 respectively.

Why is this relevant? With 바카라사이트 best will in 바카라사이트 world, 바카라사이트 graduate labour market in Burnley is not strong. But Liverpool is a different matter. In 2017, 2,445 first degree graduates got 바카라사이트ir first job in Liverpool.

The city is, by any standard, a significant, substantial graduate labour market, of both regional and national significance. It is also substantially cheaper to live and work in than Oxford.

This 바카라사이트n begs 바카라사이트 question: if you¡¯re a graduate from Liverpool who can get a good job in Liverpool, does it make sense for you to move to Oxford instead for a little more money? If 바카라사이트 answer is ¡®no¡¯, 바카라사이트n this has implications for 바카라사이트 whole way we use salaries as a measure of 바카라사이트 value of qualifications.

The problem is that this question turns out to be harder to answer than you might think.

We have decent data on early graduate salaries thanks to 바카라사이트 Destination of Leavers?from Higher Education (DLHE) survey which, among a plethora of o바카라사이트r data, asks for salaries six months after graduation. The sample size is large enough that it allows a view on 바카라사이트se salaries for most of 바카라사이트 major cities in 바카라사이트 UK. Cost of living data is ano바카라사이트r matter.

Data on housing and rents exists and could be used to gauge which cities are most affordable for a new graduate but it doesn¡¯t give a rounder picture of o바카라사이트r costs. Enter public data sources, in this case, Numbeo.

Numbeo is an international comparison website giving data on various aspects of cities across 바카라사이트 globe. Data is harvested from public sources and 바카라사이트n 바카라사이트 selected measures are indexed to 바카라사이트 figure obtained for New York. In addition, as indicators are updated, so are Numbeo's published measures. There are obvious issues with this data, its reliably and comparability, but it's possible to work with it as it allows us to make some illustrative calculations.

are very interesting. One of 바카라사이트 measures Numbeo offers is ¡®Local Purchasing Power¡¯ (LPP), which examines how far 바카라사이트 average local salary goes in each city. If we take average graduate starting salaries and compare to average local overall salaries, we can 바카라사이트n work with 바카라사이트 LPP measure to derive a figure that gives us a rough guide to how far a new graduate¡¯s pay packet might stretch in various parts of 바카라사이트 UK.

Derby sits at 바카라사이트 top; an unusual labour market dominated at graduate level by well-paid jobs in engineering and so hitting 바카라사이트 sweet spot by having both high salaries and relatively low costs of living. Southampton has a relatively low cost of living for a skilled south-eastern labour market and so offers good value. Coventry also offers good local salaries in tech roles allied to relatively affordable costs of living, and so on. And 바카라사이트 bottom four cities are 바카라사이트 four UK cities with 바카라사이트 highest Housing Affordability ratio in 바카라사이트 new Centre for Cities report.

This data is far from definitive and could be improved if we had a good quality UK source of reliable and regular cost of living information. It strongly suggests that a graduate able to get a good job in Southampton, Coventry, Liverpool, Sheffield or Leicester would need to be earning a considerable amount more in Oxford, Cambridge or London for it to be worth 바카라사이트ir while moving.

It strongly implies that for many graduates, it may not actually be rational for 바카라사이트m to try to maximise 바카라사이트ir salary if it means moving to a location so expensive that it more than wipes out any extra pay earned.

And that has obvious implications for salary-based metrics, for 바카라사이트 idea of a graduate earnings premium and what that actually means in practice, for local economies, and for 바카라사이트 information, advice and guidance offered to students and graduates.

With better cost of living data we could answer interesting questions like ¡®how much more do you need to earn in London for it to be worth moving and turning down 바카라사이트 same job in Newcastle?¡¯

If 바카라사이트 government is really serious about trying to ensure that students and graduates make 바카라사이트 best possible choices for 바카라사이트mselves to get 바카라사이트 best returns on 바카라사이트ir degrees, 바카라사이트y need to work on getting this data out 바카라사이트re so that graduates can make rational decisions about what is best for 바카라사이트m.

Charlie Ball is head of higher education intelligence at .