The State of Working Britain blog:
SWOB 9. Is it worth it? Are there too many graduates in the UK?
18 April 2016
Welcome back. The Bank of England has a regular labour market commentary in its quarterly bulletin in which it looks at issues that may influence productivity, wage pressure and hence inflation (if wage pressures are passed on to consumers in the form of higher prices). In their latest post there is a chart which suggests that the wage benefits of being a graduate have receded over the past 20 years, which they suggest may be because the supply of graduates has risen faster than demand or that the ''signalling'' value of a degree is more muddied now because so many people have one. Yet the IFS published a study this week saying there were large benefits to being a graduate - though some graduates are more equal than others. So what's going on? Well partly the studies use different data and so focus on different aspects of graduate employment. As such it may be worth looking at some basic facts about education, work and pay.
This article was published by The State of Working Britain blog on April 18, 2016
Link to article here
Related links
Jonathan Wadsworth webpage
Labour Markets Programme webpage
The State of Working Britain blog webpage