The impact of student academic achievement on graduate salaries: the case of a leading Russian university

This paper analyses the impact of academic achievement on future salaries by looking into the grade point average (GPA)-earnings relationship for graduates of a leading Russian university. The study is based on pooled cross-sectional graduate survey data for 2014–2015. The issue of how student academic achievement impacts future labour market rewards is analysed through academic, demographic and labour market factors. We found that there is a significant positive impact of GPA on salaries of BA graduates (9–12% wage premium for an additional GPA point) and an insignificant or negative impact for MA programmes graduates. The study depicts that this negative effect can be partially explained by employment sector-specific variables. Among the main factors which positively affect earnings of graduates is work experience. Graduates who combined study and work achieve a 30% wage premium. However, there is no evidence that combining study and work affects student academic achievement, even for those who combined studies with full-time job. Despite the higher GPA of female students, male graduates’ earnings are 18% higher. Gender wage differences can be explained by gender distribution by the sector of employment: the over-representation of women in the low-paid education and science sectors and their under-representation in entrepreneurship and corporate sector.     

A Waste of Time? (Private Rates of Return to Higher Education in the 1990s)

Since 1990, there has been considerable debate concerning the benefits of the expansion of higher education and the appropriate way to fund such an expansion. This paper demonstrates that three factors are decisive to the individual contemplating higher education: national economic growth; the relative earnings of graduates and non-graduates; the difference between the average and the marginal student. The results, of analysis based on rates of return, reaffirm the view that a proportion of the costs involved in higher education can be transferred to the graduates themselves in the form of loans. However, there appear to be limits to the costs that can be transferred if all students are to judge that undergraduate study is a worthwhile proposition. Notwithstanding this, most students could be lent more income to study than is now the case and indeed an average student would be advised to take any loans despite the greater debt. Marginal students, however, are making a risky private investment and, therefore, any decisions to further expand may result in students not taking up the places.     

Rates of return on university education with economies of scale

This paper presents measurements of the rates of return obtained from investment in university education and the changes in these rates which might be expected with expansion. The social internal rate of return varies between 5 and 11% on different undergraduate courses at the University of Bradford. The private return to the successful student averages 12.2% for those who pay their own expenses, but rises to 24.9% for students receiving the full public grant. By contrast the government is shown to receive an average of 5.1% return on its expenditure in terms of the income tax yield of the increased earnings of graduates.The authors believe that in planning future investment in higher education, marginal rates of return, rather than existing average rates, are the relevant yardstick. They show that, on the evidence of courses at the University of Bradford, marginal cost is likely to be substantially lower than present average cost, as expansion takes place. Lower costs, due to economies in staff and to the more intensive use of teaching accommodation, are shown to result in a marginal social rate of return averaging 10.8%, raising the average rate of return from its present 8.8% to 10.0%.     

Enhancing the link between higher education and employment

This study aims to improve the efficiency of fiscal assistance programs for higher education by investigating those variables that influence college graduates’ employment rates. An empirical analysis of 2010–2011 higher education statistics shows that two variables – educational expenditure per student and the number of students per full-time faculty member – consistently and significantly affect college graduates’ employment rates, even after location and type of school are controlled. Although scholarship rates also affect employment rates positively, the number of students per industry–academe liaison officer does not have a statistically significant effect. Moreover, as educational expenditure per student or the student/faculty ratio increases beyond a certain level, graduate employment improves at an increasing rate. The two variables also affect the employment rate interactively. At a relatively higher level of per-student expenditure, employment rates increase even as the student/faculty ratio rises. However, at a relatively lower level of per-student expenditure, employment rates decline as the student/faculty ratio rises.The policy implication is that fiscal assistance programs for higher educational institutions should accord a much greater weight to these key variables when selecting and assessing institutional recipients.     

Hard Lessons for Lifelong Learners? Age and Experience in the Graduate Labour Market

The expansion of the higher education system and widening access to undergraduate study has led to growing diversity within the graduate labour supply, including increasing numbers who studied for their degrees as mature students. Analysis of graduates entering the labour market prior to the major expansion in the early 1990s indicated that those over the age of 30 had considerably more difficulty than younger graduates in accessing the career opportunities for which their education had equipped them. Is this still the case for more recent graduates? Drawing on a major qualitative and quantitative study of a class of graduates who completed their undergraduate degree courses in 1995, this paper explores early career development and employment outcomes according to age at graduation. Although we find considerable diversity among all age groups, mature graduates were more likely than their younger peers to experience difficulty in accessing appropriate employment, had a lower rate of earnings growth and expressed higher levels of dissatisfaction with their jobs.     

Gender gaps in early wage expectations

Using detailed data from a unique survey of high school graduates in Germany, we document a gender gap in expected full-time earnings of more than 15%. We decompose this early gender gap and find that especially differences in coefficients help explain different expectations. In particular, the effects of having time for family as career motive and being first-generation college student are associated with large penalties in female wage expectations exclusively. This is especially true for higher expected career paths. Resulting expected returns to education are associated with college enrollment of women and could thus entrench subsequent gaps in realized earnings.     

The importance of mature,part-time students to higher education in the U.K.

This paper assesses the contribution made by mature part-time students to the statistics on higher education. It shows that part-time numbers currently account for approximately 40% of total student numbers in the UK, 33% of university students, (mostly in the Open University) and 43% of the total in polytechnics and colleges, (1989–90 figures). The majority are mature people, over 25 years of age, who combine both education and employment. The principal change over the past ten years has been the increasing proportion of women, who now form more than 44% of the total number of students and 42% of the part-time total. A theoretical analysis is carried out, using the Human Capital model, which shows that part-time higher education might produce significant rates of return, both to the individual and society. It is noted that most of the research efforts in the UK, into the benefits of higher education, have concentrated on young, 18–21 year olds, who study full-time, and that current government policy is primarily concerned with improving the participation rate of this age group. This paper concludes that there is sufficient evidence to warrant a more thorough investigation of the costs and benefits of part-time study and suggests that there is considerable potential for expansion in this area.     

Evaluating and designing student loan systems: An overview of empirical approaches

To understand and design student loan systems, realistic earnings and/or income projections for current and future graduates are crucial. In this paper, Current Population Survey (CPS) data from the US is used to demonstrate empirical approaches that can be exploited to simulate lifetime income and earnings profiles for graduates which are needed to understand and design effective and sustainable student loan systems. The crucial element in getting this analysis correct is having reliable simulations of the whole distribution of future graduate earnings and income. Typically, in this literature, the repayment burdens (RBs) of student loans are calculated at different quantiles of the graduate income or earnings distribution. Often, unconditional quantile regression (UQR) is used to calculate age–earnings profiles for different quantiles of the income or earnings distribution. The paper shows that this approach has limitations when evaluating student loans and that simple raw quantile estimation by age with some age smoothing is preferable. This approach can also be used when income is censored and recorded in income bands as occurs with relevant data in some countries. The paper shows a simple way of incorporating dynamics utilizing these age–earnings profiles by quantile even when only very short panel data is available. This involves using copula functions. Having reliable dynamic estimates turns out to be important in assessing not only the taxpayer costs of designing an income-contingent loan (ICL) but also for correctly assessing the extent of loan repayment hardship for individuals.     

Over-education of recent higher education graduates: New Australian panel evidence

This study investigates the incidence of over-education amongst recent Australian bachelor degree graduates and its effect on their earnings. We find that between 24% and 37% of graduates were over-educated shortly after course completion, with over-education most common amongst young females and least common amongst older females. Over-education rates vary markedly across major fields of study and appear to be associated with the relative demand for graduate labour. Overeducation was less common three years after course completion; however a nontrivial proportion of graduates remain over-educated. With regard to the effect of over-education on earnings, we find a notable age-related effect not reported in earlier studies. Young over-educated graduates were not penalised after unobserved heterogeneity had been addressed, whereas older over-educated graduates were at an earnings disadvantage relative to their well-matched peers.     

Is undergraduate debt an impediment to postgraduate enrolment in England?

Changes to undergraduate student funding arrangements in England have prompted concerns that increased indebtedness will deter graduates from postgraduate study. While it is clear that student debt has increased substantially in recent years, international evidence is equivocal on whether such debt is a deterrent to further study and there is hardly any prior research on this topic in the UK context. Using a large‐scale survey of 2009 and 2012 graduates from six selective English universities, we investigate the association between undergraduate debt, other graduate characteristics and progression to postgraduate study. We find some association of higher debt levels with lower rates of progression to postgraduate study, although this reduces when controlling for other factors, such as degree‐level attainment and subject discipline. Within a multivariate logistic regression model predicting progression to postgraduate study we find that debt is not a statistically significant predictor, although other characteristics are important. This indicates, we suggest, that underlying financial resources, rather than debt per se, are critical in enabling access to postgraduate study. We consider the implications of recently announced loans for postgraduate study in England given these findings.     

Mature Graduates II: Occupational attainment and the effects of social class

This paper compares occupational attainment among mature graduates, both male and female, from working-class origins with outcomes for mature graduates from middle-class origins. Data from the General Household Survey, (1982-1992) was used yielding 4265 male and 2869 female early graduates, 700 male, and 448 female, mature graduates. It was found that proportionately more people from working-class than middle-class origins study as adults than at the school leaving stage. Nonetheless, mature graduates from middle-class origins still outnumber those from working-class origins. However, it was found that people from working-class origins had increased their take-up of higher education as mature students over time and are reaching parity with people from middle-class origins. Working-class mature graduates are more likely to have studied in less prestigious institutions and at an older age than middle-class mature graduates, although the effects are small. These characteristics were associated with lesser occupational attainment. Working-class mature graduates are similar to middle-class mature graduates in appearing to have the faster promotion rates than early graduates, thus making up some initial career disadvantage.     

美国专业学位研究生规模影响因素研究

专业学位研究生教育是美国研究生教育的重要组成部分。本文运用主成分回归的方法,在文献综述的基础上,结合专业学位的特点,选取美国1992～2006年间GDP、人均GDP、人口数量、本科毕业生人数、专职教师数量、高等教育经费投入等6个影响专业学位研究生规模的因素进行了实证研究;研究结果表明:影响美国专业学位研究生规模的最主要因素是专职教师数量和经济发展水平。最后针对我国专业学位研究生教育的发展提出了相关看法。     

The dubious promise of postsecondary vocational education: Its payoff to dropouts and graduates in the U.S.A.

The longitudinal study described in this report investigated the effects of postsecondary public and proprietary school vocational training on students' subsequent job success in the United States. The study surveyed dropouts and graduates from public and proprietary schools in six vocational programs in four major cities, and compared their personal characteristics, job placement and earnings. Results showed that, compared with graduates, dropouts were more frequently males who were black, older, of lower socioeconomic status, and more likely from public programs. Also, few students who studied for upper status jobs (accountant, computer programmer, and electronic technician) got those jobs, regardless of whether they had graduated from or dropped out of their vocational programs. On the other hand, the majority of students who studied for lower-status jobs, in which women typically predominate, (secretary, dental assistant and cosmetologist) successfully found those jobs. Further, graduates fared significantly better in job placement than dropouts. Finally, persistence in, and graduation from a program (persistence and graduation) were unrelated to students' first earnings. However, students in lower-status occupations had higher later earnings if they completed their programs. These results suggest that vocational training, which may be done more efficiently in proprietary than public schools, enhances placement and later earnings only in lower-status jobs.     

Quality of education and student earnings

When a university increases expenditures in an attempt to improve quality, a natural question for social policy is raised: is the improvement worth the cost? One partial measure of “worth” in this context is given by earnings of graduates: will those earnings rise by enough to pay a reasonable return on the investment in higher quality? The question is hard to answer by statistical means: universities of higher quality have better reputations which allow them to select students who are themselves of higher quality; so in trying to measure the relation between earnings and university quality, quality of the school may be confounded with quality of the students. Recently, however, several large data sets have been made available which give sufficient information on the students' own backgrounds, and on their later earning, that we can hope to disentangle the effect on earnings of the school from that of the student himself. This article summarizes the results of several such studies, including our own work. The verdict to date is that the relation between “quality”, however measured, and earnings is significant, and that expenditures to improve quality are worth the cost, even when “worth” is measured narrowly as higher earnings for graduates.     

The influence of Work-Integrated Learning and paid work during studies on graduate employment and underemployment

To enhance employability and improve the career prospects of graduating students, this study explores the influence of practical experience on graduate employment outcomes in an Australian setting. To develop our understanding of the relative benefit of different forms of practical experience, the study evaluates the influence of both Work-Integrated Learning (WIL) and paid work in the final year of study on graduate employment and underemployment. Two samples are used, N?=?628 and N?=?237, to evaluate institutional data on practical experience combined with national data on graduate employment outcomes. Findings indicate that participating in WIL does not produce an increase in full-time employment rates. There is some evidence to suggest that it could lead to higher quality, relevant employment in both the short and long term. Paid employment during the final year of undergraduate study produced higher full-time employment rates, but had little effect on underemployment. Findings will help to inform stakeholders of the relative benefit of curricular and extra-curricular work experience and contribute to the dearth of empirical evidence on the value of activities designed to improve graduate employment prospects. This is particularly important given growth in the supply of graduates, concerns for credentialism, soft graduate labour markets and global economic weakening.     

Gender differences in employment and starting salaries of business majors during the 1980s: The impact of college-acquired characteristics

This study identifies changes in employment and starting salary gaps among business graduates by gender during the 1980s. Although national data indicate that both employment conditions and earnings improved for women in general over the past decade, our results indicate that, at least for a select group of younger women, labor market conditions were mixed. First, female graduates majoring in business found it less difficult, both in absolute and relative terms, to secure full-time employment after graduation throughout the 1980s. That is, the employment success rate for these females increased relative to their male counterparts. Second, regardless of whether mean, regression, or decomposition analysis is used to calculate the gender gap in starting salaries, the gap continued to increase throughout the last decade. In addition, both the regression and decomposition results suggest that the mean starting salaries gap underestimated the actual gap for the two periods studied. Finally, the study suggests that of the college-acquired characteristics found to be significant determinants of employment success and starting salaries in the early 1980s, only academic achievement continued to play a significant positive role by the end of the decade.     

Student Loans: a Northern Ireland Perspective

The government's proposals for a student loans scheme has been inadequately thought-out and researched. Mr Baker's commitment to increase participation in higher education, and hence to increase the 'outflow' of much-needed graduates, may well be undermined by the proposed scheme. In particular, what has been missing in the debate on loans has been a regional perspective. Northern Ireland offers a useful example in that, despite being the most economically depressed region in the United Kingdom, recent participation rates have already come close to the rate Mr Baker is aiming for in other parts of the country.
We cannot predict the effect of the loans scheme on participation rates. However, in present circumstances and under present policies, our guess, based on extensive survey research, is that the proposed loans scheme will diminish participation rates, particularly among those Mr Baker has targeted for special attention. Secondly, the cost of the proposed scheme to the government will be much higher than envisaged. Regional evidence from Northern Ireland suggests that large numbers of graduates will take a long time to earn sufficient salaries to rise above the 85 per cent threshold, if, in fact, they ever do.     

Evidencing student success and career outcomes among business and creative industries graduates

ABSTRACT

The teaching performance of higher education institutions is increasingly gauged by graduate employment outcomes. Measuring outcomes in full-time employment terms does not capture the complexities of underemployment, the rise of portfolio careers, the constraints of the labour market and graduate motivations for working arrangements that can allow greater flexibility and work-life balance. This study explores the career outcomes of Business and Creative Industries graduates using both traditional measures (full-time employment outcomes) and a suite of broader measures that examine career satisfaction, perceived employability, perceived career success, underemployment, and graduate motivations for seeking new roles. Findings confirm disciplinary differences in graduate experience, and raise some broad concerns about the quality of graduate employment, particularly given the lack of improvement in outcomes over time since course completion. Findings suggest graduates are optimistic about their career futures, despite unmet expectations – particularly on income.     

Initial Evidence on the Influence of College Student Engagement on Early Career Earnings

Using data from three waves of longitudinal surveys of the 2001 freshman cohort of the Gates Millennium Scholars (GMS) program, this study examined linkages between student engagement in college activities and early career earnings in the labor market. The results indicated that social engagement was positively related to early career earnings of college graduates while academic engagement was not. When considering students who majored in STEM fields versus those in non-STEM fields, results showed academic engagement to be positively related to early career earnings for non-STEM students but slightly negatively related to earnings in the labor market for STEM students. Social engagement was positive for graduates in the STEM fields but not significant for non-STEM students. Altogether, results show a complex relationship between student engagement and early career earnings. Implications for research and institutional policy are discussed.