Obtaining decent grades during graduation in the UK typically offers more prominent benefits compared to attending a prestigious university.
A groundbreaking study by the Institute for Fiscal Studies (IFS) has revealed that good grades and acquired skills are the dominant factors influencing the future earnings of UK graduates, overshadowing the reputation of the university attended [1].
Contrary to popular belief, the IFS research suggests that "innate academic ability" and the grades students achieve are key determinants of salary levels post-graduation, while the reputation of the university plays a less critical role in predicting future earnings [2].
This finding challenges the common perception that attending prestigious universities guarantees higher earnings. Instead, the study underscores individual academic achievement as the crucial element in graduate financial outcomes [2].
The study, published on April 20th, analysed data from UK universities, British earnings, and school records of those who took their General Certificates of Secondary Education since 2002 [3]. It found that at least a 2.1 (60% minimum) is needed to access the best-paid jobs, with the notable exception of medicine [4].
Those who achieve at least a 2.1 have significantly higher earnings than those who did not reach this threshold, resulting in a median annual pre-tax salary difference of £3,800 (€4,500) five years after graduation [4].
Moreover, the trend of higher earnings for better grades was not linked to the university attended, suggesting that grades matter more than a university's reputation [4].
Ben Waltmann, a senior economist at IFS and co-author of the study, advised future students to be "more relaxed" about the schools they wish to attend based on the study's findings [5]. He emphasised that while reputation matters for universities themselves—impacting marketing, student recruitment, and institutional culture—it does not translate as strongly into graduates' earnings potential compared to the grades earned during their studies [2][5].
The study also revealed that the difference in earnings based on grades varies greatly by field of study. For example, the difference between a first-class degree (above 70%) and a 2.1 (above 60%) can lead to substantial salary differences in fields like economics, law, business, computer science, and pharmacy, up to 15% [3].
However, the study's authors also acknowledged that the gender wage gap may be due to the choice of major, but more research is needed to fully understand the factors contributing to the wage gap [6].
The study further revealed that it is easier to get better grades at less selective institutions in the UK. Interestingly, the study did not find a significant relationship between the university attended and earnings, suggesting that grades matter more than a university's reputation [7].
In conclusion, the IFS study underscores the importance of academic achievement for UK graduates seeking higher earnings. While prestigious universities can be lucrative, they are only beneficial for those who achieve excellent grades. Future students are encouraged to focus on their academic performance rather than solely on the reputation of the institutions they attend.
- The study by the Institute for Fiscal Studies (IFS) indicates that individual academic achievement, rather than the reputation of the university, is vital in determining the financial outcomes of UK graduates.
- According to the IFS research, a minimum of a 2.1, or 60%, is essential for accessing the best-paid jobs, regardless of the prestige of the university attended.
- The report published by IFS also reveals that the difference in earnings based on grades varies greatly across different fields like business, law, economics, computer science, and pharmacy.
- Ben Waltmann, a senior economist at IFS and co-author of the study, advocates for future students to prioritize their academic performance over the reputation of the schools they wish to attend.
