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University Quality and Graduate Wages in the UK
Iftikhar Hussain University College London - Department of Economics; Government of the United Kingdom - Regulatory Strategy and Risk; University of Oxford Sandra McNally London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); Institute for the Study of Labor (IZA) Shqiponja Telhaj London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); University of Sussex IZA Discussion Paper No. 4043 Abstract: We examine the links between various measures of university quality and graduate earnings in the United Kingdom. We explore the implications of using different measures of quality and combining them into an aggregate measure. Our findings suggest a positive return to university quality with an average earnings differential of about 6 percent for a one standard deviation rise in university quality. However, the relationship between university quality and wages is highly non-linear, with a much higher return at the top of the distribution. There is some indication that returns may be increasing over time.
Keywords: returns to education, university quality JEL Classifications: I23, J24 Working Paper SeriesDate posted: March 08, 2009 ; Last revised: March 08, 2009Suggested CitationContact Information
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