Recent IFS Report into UK Graduates

The IFS (Institute for Fiscal Studies) has recently come out with a report that examined how the “wage premium” experienced by graduates changed from the generation graduating in the 80’s and those graduating from the 90’s. Despite a more than doubling of the number of graduates seen in the 90’s, the wage premium continued to retain its value in its wider social context.

This may come as a surprise to many, as it seems to defy common sense. However, what it appears to indicate is that, although the supply of graduates has increased explosively, the demand for them has more than kept apace.

Of course, another part of the explanation for this is that the scope of professions for which non-graduates are achieving has significantly reduced within that period, which means that, while the relative difference between the earnings of the two groups was maintained, the real world value of a degree may still have gone down.

It could also indicate a wider economic shift whereby it has become increasingly common for lower skilled jobs to be replaced by jobs that require advanced, degree level training.

Either, of those who work in education, this seems to indicate that preparing your students for a university is as important as ever.