Is university worth the money?
New government study examines whether the average UK student benefits economically from higher education
Tuition fee hikes have triggered questions about whether getting a university degree still pays off but now new research appears to confirm that it does - for female graduates, at least.
As the Government prepares to publish a review of higher education funding in 2019, the Institute for Fiscal Studies (IFS) has released the results of an analysis of the tax records of UK graduates now aged 29.
Overall, the review found that workers with a degree were earning more than those without by that age, but that there was a big difference based on gender, says The Independent.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
According to the report, female graduates earn 28% more (£6,700) on average than their female peers who did not go to university, while men earn 8% (£2,700) more.
Report co-author Chris Belfield, a research economist at the IFS, said: “Overall, women have lower earnings growth than men. So the [economic] returns for a woman in going to university are relatively bigger than they are for men.”
Or to put it another way, “the greater benefits of a degree for women reflect the relatively lower earnings of non-graduate women - they are more likely to be in part-time, rather than full-time, work and might be in lower-paid jobs”, adds the BBC.
Meanwhile, the Financial Times points out that going to university actually has a “negligible or negative impact” for 33% of male graduates.
The institution attended and subject studied are important factors when it comes to future earnings. “Medicine, economics, maths and science are likely to deliver higher earnings,” says the BBC. “But studying art, English and philosophy, particularly for men, can leave graduates on average earning lower than those who did not go to university.”
A degree from a Russell Group university was found to be worth more for future earnings than modern universities, although graduates from at least one unnamed leading institution were left with salaries no higher than their non-graduate counterparts.
Universities Minister Sam Gyimah says that the Government wants to “crack down” on the “clutch of courses at certain universities which are not delivering the financial outcomes for students”.
“Where this leads us to is to have a relentless focus on quality,” he added.
However, a spokesperson for the National Union of Students (NUS) warned against focusing only on the economic returns of attending university.
“There is a danger that, amidst calls for greater transparency in how fee income is spent, the ‘value’ of a degree is reduced to solely individual financial outcomes. It risks reflecting the other substantial benefits that a university education can give to both the student and society,” the spokesperson explained.
The cut-off in the research at age 29 “is also likely to have skewed results, since for many former students the biggest salary increases come after the age of 30”, says the FT.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Mary Poppins tour: 'humdinger' of a show kicks off at Bristol Hippodrome
The Week Recommends Stefanie Jones and Jack Chambers are 'true triple threats' as Mary and Bert in 'timeless' production
By Irenie Forshaw, The Week UK Published
-
Jaguar's stalled rebrand
In the spotlight Critics and car lovers are baffled by the luxury car company's 'complete reset'
By Abby Wilson Published
-
What the chancellor's pension megafund plans mean for your money
Rachel Reeves wants pension schemes to merge and back UK infrastructure – but is it putting your money at risk?
By Marc Shoffman, The Week UK Published
-
Is academic freedom in peril?
Today's Big Question Faculty punishments are on the rise
By Joel Mathis, The Week US Published
-
Why college students are struggling to read full books
Under the Radar Is reading full books a thing of the past for students?
By Theara Coleman, The Week US Published
-
Anti-Israel protests impact a Jewish-rooted university
The Explainer The president of Brandeis University resigned as a result of multiple factors, including his handling of recent protests
By Justin Klawans, The Week US Published
-
College admissions data reveals early effects of affirmative action's end
In the spotlight A sneak peek at how the Supreme Court's decision has panned out
By Theara Coleman, The Week US Published
-
Why are so many colleges closing?
Today's Big Question 'Enrollment cliffs' and higher tuition both play a role
By Joel Mathis, The Week US Published
-
UK universities: why higher education is in crisis
The Explainer A combination of spiralling costs and fewer international students is leaving universities in serious financial trouble
By Richard Windsor, The Week UK Last updated
-
Why are professors trying to escape their jobs?
Under the Radar The Facebook group that offers a look inside the crisis in higher education
By David Faris Published
-
USC under fire for canceling valedictorian speech
Speed Read Citing safety concerns, the university canceled a pro-Palestinian student's speech
By Rafi Schwartz, The Week US Published