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| The degrees that make you rich... and the ones that don't | The degrees that make you rich... and the ones that don't |
| (about 9 hours later) | |
| Hundreds of thousands of young people are in the process of applying to university, in time for a 2018 start. Their choices can make a huge difference to future earnings. | Hundreds of thousands of young people are in the process of applying to university, in time for a 2018 start. Their choices can make a huge difference to future earnings. |
| For most university graduates, having a degree pays. | For most university graduates, having a degree pays. |
| Over the course of a lifetime, estimates suggest women can expect to earn about £250,000 more if they have a degree, while the figure is roughly £170,000 for men. | Over the course of a lifetime, estimates suggest women can expect to earn about £250,000 more if they have a degree, while the figure is roughly £170,000 for men. |
| In England, higher tuition fees mean that, on average, students graduate with debts of more than £50,000 - much more than their counterparts in Scotland, Wales and Northern Ireland. | In England, higher tuition fees mean that, on average, students graduate with debts of more than £50,000 - much more than their counterparts in Scotland, Wales and Northern Ireland. |
| But repayments are only one of many factors which affect how much money graduates will have in their pockets in years to come. | But repayments are only one of many factors which affect how much money graduates will have in their pockets in years to come. |
| The universities which attract the highest incomes | The universities which attract the highest incomes |
| Perhaps unsurprisingly, there are big differences in the earnings of graduates from different universities. | Perhaps unsurprisingly, there are big differences in the earnings of graduates from different universities. |
| Five years after graduation, average annual earnings for students who were taught at the London School of Economics, Imperial College London and University of Oxford are more than £40,000. | Five years after graduation, average annual earnings for students who were taught at the London School of Economics, Imperial College London and University of Oxford are more than £40,000. |
| Graduates of the 24 Russell Group universities earn an average of £33,500 after five years - about 40% more than those who studied at other universities. | Graduates of the 24 Russell Group universities earn an average of £33,500 after five years - about 40% more than those who studied at other universities. |
| At the other end of the scale, there are several institutions - many of them dance and drama colleges - where average earnings after five years are closer to £15,000. | At the other end of the scale, there are several institutions - many of them dance and drama colleges - where average earnings after five years are closer to £15,000. |
| Importantly, many of the differences here are not down to the universities themselves. | Importantly, many of the differences here are not down to the universities themselves. |
| They have different average earnings partly because students aren't all the same - they have different abilities and interests. | They have different average earnings partly because students aren't all the same - they have different abilities and interests. |
| Entrants to Oxford, LSE and Russell Group universities start their degrees, on average, with better exam grades, for example. | Entrants to Oxford, LSE and Russell Group universities start their degrees, on average, with better exam grades, for example. |
| Subject choice can make a big difference | Subject choice can make a big difference |
| The big decision about what to study at university can be very important for future earnings. | The big decision about what to study at university can be very important for future earnings. |
| Five years after graduation, the income gap between students who studied the subjects that attract the highest and lowest salaries can be considerable. | Five years after graduation, the income gap between students who studied the subjects that attract the highest and lowest salaries can be considerable. |
| Graduates of medicine and dentistry earn an average of £46,700, while those who studied economics take home £40,000. | Graduates of medicine and dentistry earn an average of £46,700, while those who studied economics take home £40,000. |
| These figures are about double the average wages of creative arts (£20,100), agriculture (£22,000) and mass communication (£22,300) graduates. | These figures are about double the average wages of creative arts (£20,100), agriculture (£22,000) and mass communication (£22,300) graduates. |
| Crucially, these differences are smaller, but remain significant, even when students with similar A-level grades are compared. | Crucially, these differences are smaller, but remain significant, even when students with similar A-level grades are compared. |
| As careers progress the gaps get bigger, with graduates of the high-earning subjects pulling even further away. | As careers progress the gaps get bigger, with graduates of the high-earning subjects pulling even further away. |
| For example, students of law, economics and management subjects at the London School of Economics do extremely well, with 10% of male graduates earning more than £300,000 by the time they are in their early 30s. | For example, students of law, economics and management subjects at the London School of Economics do extremely well, with 10% of male graduates earning more than £300,000 by the time they are in their early 30s. |
| Sexual inequality | Sexual inequality |
| A number of factors influence graduate earnings long before they get as far as choosing which course to study, or which university to attend. | A number of factors influence graduate earnings long before they get as far as choosing which course to study, or which university to attend. |
| In particular, the reality is that male graduates earn more than female graduates. | In particular, the reality is that male graduates earn more than female graduates. |
| The gap can already be seen only one year after graduation, when men earn an average of £1,500 (8%) more than women per year. | The gap can already be seen only one year after graduation, when men earn an average of £1,500 (8%) more than women per year. |
| After five years, the gap has increased to around £3,500, or 14%. | After five years, the gap has increased to around £3,500, or 14%. |
| This is likely to continue to increase with age, but it should be noted that this gap is less than half that experienced by non-graduates. | |
| Some - but by no means all - of this difference can be explained by differences in subject choices, with women more likely to choose courses with low earnings potential. | Some - but by no means all - of this difference can be explained by differences in subject choices, with women more likely to choose courses with low earnings potential. |
| For example, creative arts, nursing, psychology and social science all have far more female than male students, while the opposite is true for architecture, computing and engineering. | For example, creative arts, nursing, psychology and social science all have far more female than male students, while the opposite is true for architecture, computing and engineering. |
| However, a large part of this difference cannot be explained away by personal choice. | However, a large part of this difference cannot be explained away by personal choice. |
| Rich vs poor | Rich vs poor |
| The social background of students also matters. | The social background of students also matters. |
| Those from better off households are much more likely to go to university. | Those from better off households are much more likely to go to university. |
| They are also much more likely to go to more selective universities. | They are also much more likely to go to more selective universities. |
| That is a large part of the reason why male graduates from households with incomes above £50,000 earn about 20% (£7,000) more than their university peers from lower income households, by the time they are in their early 30s. | That is a large part of the reason why male graduates from households with incomes above £50,000 earn about 20% (£7,000) more than their university peers from lower income households, by the time they are in their early 30s. |
| Among women, there is a 16% (£4,000) gap between these households. | Among women, there is a 16% (£4,000) gap between these households. |
| Remarkably though, even when comparing students who did the same subject at the same university, those from the richest households still earn around 10% more than their peers from less affluent backgrounds. | Remarkably though, even when comparing students who did the same subject at the same university, those from the richest households still earn around 10% more than their peers from less affluent backgrounds. |
| This suggests improving access to university alone is not enough to address issues of social mobility. | This suggests improving access to university alone is not enough to address issues of social mobility. |
| Never-ending debt | Never-ending debt |
| The increase in tuition fees to £9,250 per year in England has significantly increased the level of debt students graduate with - and the repayments many will make over their careers. | The increase in tuition fees to £9,250 per year in England has significantly increased the level of debt students graduate with - and the repayments many will make over their careers. |
| Most will in fact not pay back all of the cost of their tuition, with the taxpayer picking up the difference. | Most will in fact not pay back all of the cost of their tuition, with the taxpayer picking up the difference. |
| Recent changes have offered some respite to those who go on to have low earnings. | Recent changes have offered some respite to those who go on to have low earnings. |
| Graduates only ever have to pay 9% of their income above a given threshold, regardless of the size of their debts. | Graduates only ever have to pay 9% of their income above a given threshold, regardless of the size of their debts. |
| The threshold will rise from £21,000 to £25,000 in April 2018, putting more money in the pockets of significant numbers of graduates. | The threshold will rise from £21,000 to £25,000 in April 2018, putting more money in the pockets of significant numbers of graduates. |
| Over the course of their working lives, this could save graduates up to £15,700 in student loan repayments. | Over the course of their working lives, this could save graduates up to £15,700 in student loan repayments. |
| It also means that more than 40% of graduates are now expected to repay less than they would have had there been no changes to the student loan system since 2011. | It also means that more than 40% of graduates are now expected to repay less than they would have had there been no changes to the student loan system since 2011. |
| And, for eight out of 10 graduates, it is likely that they will get to the end of their working lives having never paid off that loan. | And, for eight out of 10 graduates, it is likely that they will get to the end of their working lives having never paid off that loan. |
| About this piece | About this piece |
| This analysis piece was commissioned by the BBC from an expert working for an outside organisation. | This analysis piece was commissioned by the BBC from an expert working for an outside organisation. |
| Dr Jack Britton is a senior research economist at the Institute for Fiscal Studies, which describes itself as an independent research institute which aims to inform public debate on economics. | Dr Jack Britton is a senior research economist at the Institute for Fiscal Studies, which describes itself as an independent research institute which aims to inform public debate on economics. |
| More details about its work and its funding can be found here. | More details about its work and its funding can be found here. |
| Charts produced by Becca Meier | Charts produced by Becca Meier |
| Edited by Duncan Walker | Edited by Duncan Walker |