College Graduates in England Earn More Than Non-Graduates, Analysis Finds

Students with university degrees in England usually earn more in labor market than those who don't continue education but enter the workforce instead, according to a new analysis of government data.

Universities UK analyzed the earnings and employment of graduates in England from the age of 17 to 31 and found that most graduates, despite entering the job market later, manage to catch up with non-graduates and even surpass them in income, Erudera.com reports.

Findings show that within a few years, graduates earn more than non-graduates who could have attended university but choose not to, meaning they earn at least 20 percent more by their mid-20s, and 37 percent more by age 31. The gap is higher for those from economically deprived areas.

When full-time students attend university or college, others who do not do the same earn an average of £33,500 more. After completing their programs, graduates earn more than non-graduates after completing their programs, making £52,000 more annually from age 23 to 31.

Between the ages of 23 and 31, the average earnings of graduates increased by 72 percent compared to 31 percent for non-graduates.

Commenting on the findings, Vivienne Stern, MBE, Chief Executive of Universities UK, emphasized the importance of choosing a degree, saying it pays off for most graduates and the more students learn, the more they are likely to earn.

“With the potential to significantly increase earnings wherever you live or sector you work in – including the arts and media – this data clearly demonstrates that salary growth for graduates is a marathon, not a sprint,” she said.

Similarly, individuals from the most deprived backgrounds earn more after graduation, increasing their earnings by 75 percent compared to 26 percent for non-graduates. In other words, graduates from deprived areas make £41,400 more than nongraduates.

“Earnings are not the only measure of a valuable degree – and lots of people choose careers because they care about them, not just for the money. However, this new analysis conclusively shows that it is overwhelmingly worth getting a degree,” Stern added.

Institute for Fiscal Studies (IFS) foresees 85 percent of women and 75 percent of men achieving positive net lifetime returns from attending university. The same revealed a gap in earnings between those who finish education and those who don’t after age 30.

Among male graduates who were 30 in 2016, earnings are expected to grow from £15,000 by age 40, compared with just £5,000 for non-graduate men. On the other hand, average earnings for women are also higher than that of non-graduates.

IFS also predicts that earnings for female graduates at 30 in 2016 will be up by nearly £5,000 by age 40, whereas earnings of female non-graduate women are not expected to rise during the same period.

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