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IFS: What and where you study matters for grad earnings, but so does paental income

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Why bother with a post grad course - waste of time? 17-10-2016
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    PR http://www.ifs.org.uk/uploads/public...ngs_130416.pdf

    Graduates from richer family backgrounds earn significantly more after graduation than their poorer counterparts, even after completing the same degrees from the same universities.
    This is one of many findings in new research published today which looks at the link between earnings and students’ background, degree subject and university attended.
    The research used anonymised tax data and student loan records for 260,000 students up to ten years after graduation.
    This is the first time a ‘big data’ approach has been used to look at how graduate earnings vary by institution of study, degree subject and parental income.
    The data set includes cohorts of graduates who started
    university in the period 1998–2011 and whose earnings (or lack of earnings are then observed over a number of tax years.
    In the paper, we largely focus on the tax year 2012/13.
    Full report http://www.ifs.org.uk/uploads/public...wps/wp1606.pdf

    First time to see data from tax records rather than the self-reported DHLE surveys.

    Further, we find that the gap is larger at the
    20th and 90th percentiles of the graduate earnings distribution, suggesting coming from higher
    income households both protects against low earnings and provides greater opportunity for very
    high earnings. The magnitude of this effect is sufficient to be important.

    & before anyone says... the authors point out they're not able to see whether graduates with rich parents really have 'the rich genes' or 'the high IQ genes' - but it still seems to hold even for graduate of non drool-zone unis.

    Interesting, I wonder if this is to do with other factors associated with wealth. Better networking connections perhaps? What if the parents of rich children are very successful in their field and the children follow in their footsteps? What if rich parents have the financial means to support their children more and have better assess to opportunity (or indeed using financial means to force opportunties to occur).

    I think there is many factors to consider but I do think it's an interesting debate!
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