Heterogeneities in the Returns to Degrees: Evidence from the British Cohort Study 1970

Abstract

Estimates of a high average return to a degree for UK graduates have provided a policy rationale for increasing the share of the costs of higher education borne by UK students over recent decades. We use evidence from a cohort of people born in 1970 to estimate hourly wage returns to a university degree. We analyse the extent of variations around average returns, focussing on heterogeneity in returns by factors such as: gender, degree subject studied, degree class awarded, student ability measures and family background. Among other results, we find substantial evidence of heterogeneous returns to a first degree according to subject area of study and class of degree awarded

Keywords: degree, return, subject, UK, university

JEL Classification: J3, J4, I2