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Private school pupils end up £200,000 richer Watch

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    People who went to private school are now earning 43% more an hour than people that went to state schools.

    Does this expose the structural flaws of the British state school system, or simply that the rich are getting richer...
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    This sort of makes sense. There would be no point in private schools if they didn't give an advantage.
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    Well that is a shame for school state kids.
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    Makes sense I suppose
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    bizarrely he telegraph managed to report this as showing that private education didn't pay for itself - which seems like a pretty perverse interpretation of the numbers.

    Private school cost 'outweighs child’s future earnings’

    I wonder if it's because they employ too many ex-public school arts and humanities graduates
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    People try to claim that the schools will cost more than £200,000 anyway, but in fairness that is very rarely the case.
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    (Original post by Joinedup)
    bizarrely he telegraph managed to report this as showing that private education didn't pay for itself - which seems like a pretty perverse interpretation of the numbers.

    Private school cost 'outweighs child’s future earnings’

    I wonder if it's because they employ too many ex-public school arts and humanities graduates
    Not really, though the article doesn't clearly present the reasoning.

    The study shows that private education is naively correlated with a £200k increase in earnings between 26 and 42. When they crudely correct for pre-existing aptitude differences between private and state school pupils this drops to £57,653. The real figure is probably lower because they corrected for aptitude by correlating it with parental wealth, whereas most private schools are directly academically selective via aptitude tests, not only indirectly via fees. But giving the benefit of the doubt and accepting the £60k figure.

    If the average school fee is £12k for a day pupil as they claim, putting the money in a bank account between the ages of 11 and 18 would have built a pot of £84k. The bank option at 18 is already ahead of where the private school option is at 42! But it gets worse. If invested, this pot could be expected to grow at at least 3-4% annually in real terms. At the age of 42 it would be worth £213k @ 3.5% (£315k @ 5%) and could be used to draw a stable income of £6k/year for life.

    The Telegraph is just treating education as a regular investment which is expected to repay itself after costs and interest in each individual case, rather than counting any non-zero amount of gross revenue as 'profit', as education apologists prefer. While there's nothing to compare it to, it seems likely that state education is also loss making in many instances.
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    (Original post by Numberwang)
    People who went to private school are now earning 43% more an hour than people that went to state schools.

    Does this expose the structural flaws of the British state school system, or simply that the rich are getting richer...
    I think this is fantastic news showing the success of schools in this country. Surely evidence that selective education works (most private schools have entrance exams like grammar) and that we should seek to expand access.

    If one really wants to turn the tide in class then take the children on free school meals and make sure half of those able to pass the entrance exams get access to grammar and private education.
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    (Original post by Rakas21)
    I think this is fantastic news showing the success of schools in this country. Surely evidence that selective education works (most private schools have entrance exams like grammar) and that we should seek to expand access.

    If one really wants to turn the tide in class then take the children on free school meals and make sure half of those able to pass the entrance exams get access to grammar and private education.
    Expanding selective education would mean that it ceases to be fully selective - thus lowering the wage gap and rendering it not much use.
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    Yes it definitely makes sense.

    Looks like someone is going to be richer than all you state school people.
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    (Original post by JAIYEKO)
    Yes it definitely makes sense.

    Looks like someone is going to be richer than all you state school people.
    You will be my royal shoe cleaner x
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    (Original post by Numberwang)
    People who went to private school are now earning 43% more an hour than people that went to state schools.

    Does this expose the structural flaws of the British state school system, or simply that the rich are getting richer...
    Let's be honest here this is correlation rather than causation. If your parents are rich they are a) more likely to have contacts and b) can pay your way through internships etc to get the best paid jobs. They also will give you a lot of money.

    This is basically 'rich people end up £200,000 richer.

    My brother sure as hell won't end up that much richer than me.
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    (Original post by redferry)
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    This. The sort of people whose parents can afford private school are generally at an advantage to begin with.
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    (Original post by midgemeister7)
    People try to claim that the schools will cost more than £200,000 anyway, but in fairness that is very rarely the case.
    In the South East, for day school, over a 13 year school career that sounds about right, though not in the regions.

    If they board it definitely would, any halfway decent boaring school now is over 30k.
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    (Original post by redferry)
    Let's be honest here this is correlation rather than causation. If your parents are rich they are a) more likely to have contacts and b) can pay your way through internships etc to get the best paid jobs. They also will give you a lot of money.

    This is basically 'rich people end up £200,000 richer.

    My brother sure as hell won't end up that much richer than me.
    Are you really saying that private schools don't give you a better chance than normal state schools?
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    (Original post by james22)
    Are you really saying that private schools don't give you a better chance than normal state schools?
    Above the cost of attending? I doubt it.
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    (Original post by Le Nombre)
    In the South East, for day school, over a 13 year school career that sounds about right, though not in the regions.

    If they board it definitely would, any halfway decent boaring school now is over 30k.
    I would expect that for a boarding schools, but few day schools in parts of the country other than London will have fees surpassing 200k. I suppose it also depends how long the child attends private schooling - a lot of kids only join private schools for secondary education and consequently only spend a maximum of 7 years there.
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    (Original post by midgemeister7)
    Expanding selective education would mean that it ceases to be fully selective - thus lowering the wage gap and rendering it not much use.
    Of course if you increase the supply you'll devalue it a bit but with a 40% pay gap now (and that's just over 14 years I think) there is room to play with. Not only that but any kind of progress towards reducing the advantage of the rich from the bottom up (not top down harming the rich) is surely positive. Along with housing allocation I believe the education gap to be a big factor in the restraint of social mobility.
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    (Original post by Observatory)
    Not really, though the article doesn't clearly present the reasoning.

    The study shows that private education is naively correlated with a £200k increase in earnings between 26 and 42. When they crudely correct for pre-existing aptitude differences between private and state school pupils this drops to £57,653. The real figure is probably lower because they corrected for aptitude by correlating it with parental wealth, whereas most private schools are directly academically selective via aptitude tests, not only indirectly via fees. But giving the benefit of the doubt and accepting the £60k figure.

    If the average school fee is £12k for a day pupil as they claim, putting the money in a bank account between the ages of 11 and 18 would have built a pot of £84k. The bank option at 18 is already ahead of where the private school option is at 42! But it gets worse. If invested, this pot could be expected to grow at at least 3-4% annually in real terms. At the age of 42 it would be worth £213k @ 3.5% (£315k @ 5%) and could be used to draw a stable income of £6k/year for life.

    The Telegraph is just treating education as a regular investment which is expected to repay itself after costs and interest in each individual case, rather than counting any non-zero amount of gross revenue as 'profit', as education apologists prefer. While there's nothing to compare it to, it seems likely that state education is also loss making in many instances.
    I think its on about gross earnings rather than net. You can probably reduce the numbers by 30% to take NI/income tax into account.
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    (Original post by james22)
    Are you really saying that private schools don't give you a better chance than normal state schools?
    Children from middle class backgrounds tend to achieve high grades whichever school they go to

    Although of course there's a big foot in the door for Oxbridge compared to comps through networking and help with interview prep and things like step.
 
 
 
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