Researchers found an average economic return of 27 per cent for those completing higher education versus anything less. Compared to stopping at 16 without qualifications, they found an average return to O-levels of 18 per cent, to A-levels of 24 per cent, and to higher education of 48 per cent. (The study was based on cohort studies, in particular the National Child Development Survey.) (O-levels = Ordinary levels; A-levels = Advanced levels)
Source: Richard Blundell, Lorraine Dearden and Barbara Sianesi, Evaluating the Impact of Education on Earnings in the UK: Models, methods and results from the NCDS, Working Paper 03/20, Institute for Fiscal Studies
Links: Paper (pdf)
Date: 2003-Nov
A report said that weak economic development practices among local authorities were resulting in education being overlooked as a cornerstone of regeneration. Local partnerships were urged to treat education as an economic driver rather than a service, in order to improve their poor record on business development.
Source: Mark Hepworth, The Knowledge Economy Agenda for Local Authorities, Local Futures Group (020 7520 8120)
Links: Summary
Date: 2003-Nov
Researchers explored the potential for education to have a positive impact on overall social cohesion and the levels of trust with societies.
Source: John Preston and Andy Green, The Macro-Social Benefits of Education, Training and Skills in Comparative Perspective, Report 9, Centre for Research on the Wider Benefits of Learning/University of London (020 7612 6291)
Links: Report (pdf)
Date: 2003-Sep
Researchers estimated the impact of changes in the stock of educational qualifications (particularly vocational qualifications) on sector productivity. They found strong productivity effects from academic 'level 4+' qualifications (degree, higher degree, diploma in higher education, and other higher education qualifications below degree level). But they could not find a systematic and positive impact on productivity from vocational qualifications, regardless of level.
Source: Stephen Machin, Anna Vignoles and Fernando Galindo-Rueda, Sectoral and Area Analysis of the Economic Effects of Qualifications and Basic Skills, Research Report 465, Department for Education and Skills (0845 602 2260)
Links: Report (pdf) | Brief (pdf)
Date: 2003-Aug
A paper provided a survey of research on the link between education and economic growth.
Source: Philip Stevens and Martin Weale, Education and Economic Growth, Discussion Paper 221, National Institute for Economic and Social Research (020 7654 1901)
Links: Paper (pdf)
Date: 2003-Aug
A paper explored possible explanations for the fact that the rate of return to schooling appeared to be nearly two percentage points greater for females than for males - despite the fact that females tended to earn less, both absolutely and after controlling for personal characteristics.
Source: Christopher Dougherty, Why is the Rate of Return to Schooling Higher for Women than for Men?, DP581, Centre for Economic Performance/London School of Economics (020 7955 7673)
Links: Paper (pdf) | Abstract
Date: 2003-Aug
Researchers found that, even after accounting for personal characteristics, graduating from a more prestigious ('Russell Group') university added up to 6 per cent to a male graduate s earnings compared to graduating from others, and 2.5 per cent for women. The government said the findings supported its case for allowing universities to set differential tuition fees.
Source: Arnaud Chevalier and Gavan Conlon, Does it Pay to Attend a Prestigious University?, Centre for the Economics of Education/London School of Economics (020 7955 7285) | Press release 21.5.03, Department for Education and Skills (0870 000 2288)
Links: Report (pdf) | DfES press release
Date: 2003-May
A paper argued that promoting education through public subsidy might be a means to reduce income inequality.
Source: Robert Dur and Coen Teulings, Are Education Subsidies an Efficient Redistributive Device?, DP 30, Centre for the Economics of Education/London School of Economics (020 7955 7285)
Links: Paper (pdf)
Date: 2003-May
Researchers found that, in the areas of health, the labour market, citizenship and parenthood, young people profited significantly from higher education. This was despite the expansion of the graduate population between the 1958 and the 1970 cohorts examined.
Source: John Bynner, Peter Dolton, Leon Feinstein, Gerry Makepeace, Lars Malmberg and Laura Woods, Revisiting the Benefits of Higher Education, Bedford Group for Lifecourse and Statistical Studies/University of London (020 7612 6050)
Links: Report (pdf) | HEFCE press release
Date: 2003-Apr
An article examined the relationship between educational attainment and wage rates. A high financial return to education was found. But this varied considerably between individuals, and the degree subject played an important role - arts degrees having little effect on average wages, but economics, management and law having large effects. There was no evidence that the expansion in higher education had resulted in lower financial returns implying that the expansion in supply was just keeping up with growing demand.
Source: Ian Walker and Yu Zhu, 'Education, earnings and productivity: recent UK evidence', Labour Market Trends, March 2003, Office for National Statistics, TSO (0870 600 5522)
Links: Article (pdf) | Independent article
Date: 2003-Mar
