University Quality and Graduate Wages in the UK

26 Pages Posted: 8 Mar 2009  

Iftikhar Hussain

University of Oxford; University College London - Department of Economics

Sandra McNally

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); IZA Institute of Labor Economics

Shqiponja Telhaj

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); University of Sussex

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 Classification: I23, J24

Suggested Citation

Hussain, Iftikhar and McNally, Sandra and Telhaj, Shqiponja, University Quality and Graduate Wages in the UK. IZA Discussion Paper No. 4043. Available at SSRN: https://ssrn.com/abstract=1355426

Iftikhar Hussain (Contact Author)

University of Oxford

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom

Sandra McNally

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Shqiponja Telhaj

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

University of Sussex

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

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