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
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×