Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Degree grade matters more than university reputation, report finds

Degree grade matters more than university reputation, report finds

Graduates with good degree from less prestigious university earn more than those with lower-class degree from selective institution
Students are advised to be “more relaxed” about the reputation of the universities they want to attend, after new research revealed they could be better off graduating with a good degree from a less prestigious university than with a lower-class degree from a selective institution.

The report by the Institute for Fiscal Studies found that graduates in England with first-class or upper second class (2.1) honours degrees had higher average earnings by the age of 30 than those who finished with lower second-class (2.2) awards, regardless of institution – meaning that degree class was often more important than institutional reputation.

Figures in the report also suggested it was less difficult to obtain a higher-class degree outside selective universities with competitive entry requirements, despite those universities tending to award a larger proportion of 2.1s and firsts.

Ben Waltmann, senior research economist at IFS and a co-author of the report, said prospective students, parents and policymakers should take note of the findings, and be “more relaxed” about which institutions they aim to study at.

“The findings imply that degree classification may matter as much as university attended for later-life earnings,” Waltmann said.

“Going to a more selective university is good for future earnings, and the fact that few students from disadvantaged backgrounds attend the most selective universities is a barrier to social mobility.

“But that being said, many graduates who get a 2.2 from a highly selective university might have got a higher-paying job had they attended a slightly less selective university and got a 2.1.”

The research, based on detailed government data, found that five years after graduation, annual pretax earnings for both women and men who obtained a lower second-class degree in 2013 were about £3,800 lower than for those who received an upper second-class degree.

The study also found that the rewards for higher degree classes vary “hugely” depending on subject.

Jack Britton, associate director of the IFS and co-author of the report, said: “For many subjects, the difference between a first and a 2.1 is inconsequential for earnings. However, for others – such as economics, law, business, computing and pharmacology – it is substantial.”

For men and women studying law or economics, getting a 2.2 rather than a 2.1 was associated with 15% lower earnings or worse, while there was “no significant difference” in pay between degree classes for those who majored in education or English.

But achieving at least a 2.1 led to much higher average pay for graduates of more selective universities.

Men and women who gained a 2.2 from the most selective universities – Oxford, Cambridge, Imperial College London and the London School of Economics – earned 20% less on average by the age of 30 than those who achieved a 2.1. At the least selective universities, a 2.2 degree led to about 6% lower pay for women and 8% for men.

The IFS also noted “stark gender differences” in the rewards between men and women achieving first-class degrees at very selective universities. The increase for a first-class degree versus a 2.1 was almost nothing for women but about 14% for men.

“This suggests that fewer high-achieving women go on to high-earning careers,” the IFS said.

Waltmann said the graduate gender pay gap was largely explained by subject choice. But even for those who graduated in the same subjects, it was clear that a pay gap had emerged by the age of 30 that was only partly explained by women leaving the labour market to have children.

“Children are a key explanation but they are not the only thing going on here,” Waltmann said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×