We investigate the extent to which graduate returns vary according to the class of degree achieved by UK university students and examine changes over time in estimated degree class premia. Using a variety of complementary datasets for individuals born in Britain around 1970 and aged between 30 and 40, we estimate an hourly wage premium for a `good? (relative to a `lower?) class of degree of 7% to 9%, implying a wide spread around the average graduate premium. We also estimate the premium for a good relative to a lower degree for different cohorts (those born between the mid-1960s and early-1980s) and find evidence that the premium for a good degree has risen over time as the proportions of cohorts participating in higher education have increased.

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26 November 2015     Paper Number CEPDP1392

Download PDF - Graduate returns, degree class premia and higher education expansion in the UK

This CEP discussion paper is published under the centre's Education programme.

This publication comes under the following theme: Higher education