§ Mr. BoswellTo ask the Secretary of State for Education and Skills if he will make a statement on the graduate employment premium for lifetime earnings in comparison with(a) those with two Level 3 qualifications who do not enter university and (b) the overall cohort of school-leavers. [134123]
§ Mr. Charles ClarkeThe information is not available in the exact form requested. Previous analyses of the Labour Force Survey (LFS) estimate that first degree graduates earn on average around 120,000 more—in present value terms—over their working lives than those with two or more A-levels1
An equivalent estimate comparing the lifetime earnings of graduates with the population as a whole is not available. However, separate analyses of the LFS show that individuals with first or sub degree qualifications earn on average around 50 per cent. more than non-graduates2. The 50 per cent. premium is measured in a different way from the £120,000 lifetime earnings differential. In particular the comparator groups and methodologies used differ. However, both estimates provide evidence that individuals with Higher Education qualifications earn considerably more than those without.
1DfES analysis of Spring 2002 Labour Force Survey data. The analysis involved constructing a lifetime earnings stream for first degree graduates and comparing it against the lifetime earnings of A-level holders. Both earnings streams were discounted, adjusted for real earnings growth and other factors affecting earnings, other than the qualification itself. The difference between the two earnings streams summed to £120,000.2DfES analysis of Summer 2001-Spring 2002 Labour Force Survey data. The analysis involved taking the ratio of average earnings of all first and sub degree holders to the average earnings of all non-graduates, which equalled 50 per cent.