By Michael Shattock
In April 2016 the IFS published its long awaited Working Paper (W16/06): ‘How English domiciled graduate earnings vary with gender, institution attended, subject and socio-economic background’ authored by Britton, J, Dearden, L, Shephard, N and Vignoles, A. The research and its findings are likely to be immensely influential in the UK and probably internationally, both in higher education studies and in respect to policy.
A month later the UK Government published its White Paper, Success as a Knowledge Economy: Teaching Excellence, Social Mobility and Student Choice Department of Business, Innovation and Skills, May 2016, Cm 9258 which made several references to the Working Paper’s findings and confirmed that they were ‘at the heart of delivering our reform agenda’(para 34).
The originality of the IFS paper lies primarily in the methodology adopted to offer data on the earning levels of English graduates 10 years from graduation and the precision which it gives to analysing it against a given set of variables. Hitherto, economists have been able, using rate of return analysis, to calculate the value of degree study as against non-entry to higher education but the absence of national data, apart from the notoriously suspect employment data collected by careers offices six months after graduation, has proved to be a severe limitation on any assessment of the employment outcomes of UK higher education. Continue reading