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Sheer Class? Returns to educational performance: evidence from UK graduates’ first destination labour market outcomes

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Naylor, Robin Andrew, 1959-, Smith, Jeremy (Jeremy P.) and McKnight, Abigail (2007) Sheer Class? Returns to educational performance: evidence from UK graduates’ first destination labour market outcomes. Working Paper. University of Warwick, Department of Economics, Coventry.

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Abstract

We exploit individual-level administrative data for whole populations of UK university students for the leaving cohorts of 1985-1993 (together with that of 1998) to investigate the influence of degree performance on graduate occupational earnings. We find that there is a significant premium associated with a good performance at university. We also find that this premium increased between 1985/6 and 1993/4, a period of substantial expansion in the graduate population. Among other results, we find that there are significant differences in the occupational earnings of leavers according to university attended, subject studied, and pre-university educational and social background, ceteris paribus.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Wages -- Effect of education on, Education, Higher -- Great Britain, Degrees, Academic -- Great Britain, Wages -- College graduates
Series Name: Warwick economic research papers
Publisher: University of Warwick, Department of Economics
Place of Publication: Coventry
Date: January 2007
Number: No.786
Number of Pages: 29
Status: Not Peer Reviewed
Access rights to Published version: Open Access
References: Becker, G. S. (1975). Human capital, a theoretical and empirical analysis. New York: National Bureau of Economic Research. Blundell, R., L. Dearden, A. Goodman, and H. Reed (1997). Higher education, employment and earnings in Britain. London: Institute for Fiscal Studies. Blundell, R., L. Dearden, A. Goodman, and H. Reed (2000). The returns to higher education in Britain: evidence from a British cohort. Economic Journal 110, F82�F99. Blundell, R., L. Dearden, and B. Sianesi (2005). Evaluating the e¤ect of education on earnings: models, methods and results from the National Child Development Survey. Journal of the Royal Statistical Society, Series A 168, 473�513. Bratti, M. (2002). Does the choice of university matter? A study of the difference across UK universities in life science students' degree performance. Economics of Education Review 21, 431�443. Bratti, M., R. A. Naylor, and J. Smith (2007). Variations in wage returns to a first degree: Evidence from the british cohort survey 1970. Twerp, University of Warwick. Card, D. (1999). The causal effect of education on earnings. In O. Ashenfelter and D. Card (Eds.), Handbook of Labor Economics, volume 3, pp. 73�103. Elsevier Science. Chevalier, A., G. Conlon, F. Galindo-Rueda, and S. McNally (2002). The returns to higher education teaching. Research report to the Department of Education and Skills, Centre for the Economics of Education. Dearing (1997). Higher education in the learning society. National committee of enquiry into higher education, HMSO. Dolton, P., D. Greenaway, and A. Vignoles (1997). Whither higher education? An economic perspective for the Dearing committee of enquiry. Economic Journal 107, 710�726. Dolton, P. and G. H. Makepeace (1990). The earnings of economics graduates. Economic Journal 100, 237�250. Dolton, P. and A. Vignoles (1999). The labour market returns to different types of secondary school curricula. mimeo, London School of Economics. Greenaway, D. and M. Haynes (2003). Funding higher education in the UK: the role of fees and loans. Economic Journal 113, F150�F166. Hamermesh, D. S. and S. G. Donald (2004). The e¤ect of college curriculum on earnings: Account for non-ignorable non-response bias. Working paper 10809, NBER. Heckman, J. J. (1979). Sample selection bias as a speci�cation error. Econometrica 47, 153�161. Joy, L. (2003). Salaries of recent male and female college graduates: Educational and labor market effects. Industrial and Labor Relations Review 56, 606�618. Lee, L. F. (1983). Generalised econometric models with selectivity. Econometrica 51, 507�512. McNabb, R. and G. Johnes (2003). Never give up on the good times: Student attrition in the uk. Oxford Bulletin of Economics and Statistics, forthcoming 65, 481�503. Mincer, J. (1974). Schooling, experience and earnings. New York: National Bureau of Economic Research. Naylor, R. A. and J. Smith (2004). Returns to education: a signalling approach. Manscript, University of Warwick. Naylor, R. A., J. Smith, and A. McKnight (2002). Why is there a graduate earnings premium for students from independent schools? Bulletin of Economic Research 54, 315�339. Smith, J., A. McKnight, and R. A. Naylor (2000). Graduate employability: Policy and performance in higher education in the uk. Economic Journal 110, F382�F411. Smith, J. and R. A. Naylor (2001a). Determinants of degree performance in uk universities: a statistical analysis of the 1993 student cohort. Oxford Bulletin of Economics and Statistics 63, 29�60. Smith, J. and R. A. Naylor (2001b). Dropping-out of university: a statistical analysis of the probability of withdrawal for UK university students. Journal of the Royal Statistical Society, Series A 164, 389�405.
URI: http://wrap.warwick.ac.uk/id/eprint/1418

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