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Sheer class? The impact of degree performance on graduate labour market outcomes

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Naylor, Robin Andrew, 1959-, Smith, Jeremy (Jeremy P.) and McKnight, Abigail (2002) Sheer class? The impact of degree performance on graduate 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 to investigate the determinants of graduate occupational earnings. Among other results, we find that there are significant differences in the occupational earnings of leavers, according to university attended, subject studied, and degree class awarded, ceteris paribus. We also find that the premium associated with the award of a high degree class increased between 1985/6 and 1993/4, a period of substantial expansion in the graduate population. We suggest that this is consistent with a signalling model of the returns to higher education qualifications.

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: 13 December 2002
Number: No.659
Number of Pages: 31
Status: Not Peer Reviewed
Access rights to Published version: Open Access
References: Blundell, R., Dearden, L., Goodman, A., and Reed, H. (1997). Higher education, employment and earnings in Britain. London: Institute for Fiscal Studies. Blundell, R., Dearden, L., Goodman, A., and Reed, H. (2000). The returns to higher education in Britain: evidence from a British cohort. Economic Journal, 110, F82–F99. Bratti, M. (2002). Does the choice of university matter? As tudy of the difference across UK universities in life science students’ degree performance. Economics of Education Review, 21, 431–443. Bratti, M., Naylor, R. A., and Smith, J. (2003). Are all universities students winners in the graduate labour market?. mimeo, University of Warwick. Chevalier, A., Conlon, A., Galindo-Rueda, F., and McNally, S. (2002). The returns to higher education teaching. Research report to the Department of Education and Skills, Centre for the Economics of Education, London. Dearing (1997). Higher education in the learning society. National committee of enquiry into higher education, HMSO, London. Dolton, P., Greenaway, D., and Vignoles, A. (1997). Whither higher education? An economic perspective for the Dearing committee of enquiry. Economic Journal, 107, 710–726. Dolton, P., and Makepeace, G. H. (1990). The earnings of economics graduates. Economic Journal, 100, 237–250. Dolton, P., and Vignoles, A. (1997). A first reaction to Dearing. RES Newsletter, 99, 3–5. Dolton, P., and Vignoles, A. (1999). The labour market returns to different types of secondary school curricula. mimeo, London School of Economics. Greenaway, D., and Haynes, M. (2003). Funding higher education. Economic Journal, forthcoming, 15, 1–2. Heckman, J. J. (1979). Sample selection bias as a specification error. Econometrica, 47, 153–161. Lee, L. F. (1983). Generalised econometric models with selectivity. Econometrica, 51, 507–512. McNabb, R., Sarmistha, P., and Sloane, P. (2003). Gender differences in student attainment: The case of university students in the UK. Economica, forthcoming, 15, 1–2. Naylor, R. A., Smith, J., and McKnight, A. (2002). Why is there a graduate earnings premium for students from independent schools?. Bulletin of Economic Research, 54, 315–339. Smith, J., McKnight, A., and Naylor, R. A. (2000). Graduate employability: Policy and performance in higher education in the UK. Economic Journal, 110, F382–F411. Smith, J., and Naylor, R. A. (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 Naylor, R. A. (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/1529

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