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One in five students lose money by going to university, IFS finds
Men benefit more than women and creative arts provide worst returns, according to tax data
One in five students would be financially better off if they skipped higher education, according to groundbreaking research that compares the lifetime earnings of graduates and non-graduates.
Analysis by the Institute for Fiscal Studies found while 80% of former students gained financially from attending university, about 20% earned less than those with similar school results who did not attend, highlighting how some subjects, such as creative arts, offer negative financial returns.
The IFS research – which uses tax data to measure the earnings of those who went to university from the mid-90s onwards – found that after accounting for taxes and student loans, men gained on average £130,000 and women £100,000 over their careers, compared with their peers who didn’t enter higher education.
As well as the total “graduate premium” being different between the sexes, it is also unevenly distributed over time, with women reaching a glass ceiling on earnings growth in their 30s and 40s, even among Oxbridge graduates. The premium also differed depending on the subject studied.
The report comes as the government in England is applying additional scrutiny to universities and outcomes for graduates, with some ministers looking to restrict the numbers taking so-called “low-value” courses.
Overall, the IFS found the government benefited from extra tax revenue and national insurance contributions of £110,000 per man and £30,000 per woman, over and above the costs of study to the government.
https://www.theguardian.com/education/2020/feb/29/one-in-five-students-lose-money-by-going-to-university-ifs-finds
Men benefit more than women and creative arts provide worst returns, according to tax data
One in five students would be financially better off if they skipped higher education, according to groundbreaking research that compares the lifetime earnings of graduates and non-graduates.
Analysis by the Institute for Fiscal Studies found while 80% of former students gained financially from attending university, about 20% earned less than those with similar school results who did not attend, highlighting how some subjects, such as creative arts, offer negative financial returns.
The IFS research – which uses tax data to measure the earnings of those who went to university from the mid-90s onwards – found that after accounting for taxes and student loans, men gained on average £130,000 and women £100,000 over their careers, compared with their peers who didn’t enter higher education.
As well as the total “graduate premium” being different between the sexes, it is also unevenly distributed over time, with women reaching a glass ceiling on earnings growth in their 30s and 40s, even among Oxbridge graduates. The premium also differed depending on the subject studied.
The report comes as the government in England is applying additional scrutiny to universities and outcomes for graduates, with some ministers looking to restrict the numbers taking so-called “low-value” courses.
Overall, the IFS found the government benefited from extra tax revenue and national insurance contributions of £110,000 per man and £30,000 per woman, over and above the costs of study to the government.
https://www.theguardian.com/education/2020/feb/29/one-in-five-students-lose-money-by-going-to-university-ifs-finds