The table below compares earnings at age 29 of female graduates compared to non graduates for different subject areas.
As you can see, female economics graduates earn 150% more than non graduates, with medicine not far behind and most of the rest of the STEM subject graduates earning 100% more.
Meanwhile at the other end of the scale social care and create arts degree graduates only earn about 20-25% more than non-graduates, making these degrees a lot less valuable in terms of purely financial returns.
The significance of these statistics
Fair enough I guess that medicine yields a decent return, I don’t think there’s much scope to criticise that, and given the innovation within science and engineering, the fact that these degrees result in 100% higher earnings at age 29 isn’t surprising either.
HOWEVER, I have a problem with economics graduates earning so much more. It’s very unlikely that these people are earning so much money because of the social good they are doing. It’s probably more likely that they’re sucking money upwards to the already rich working for corporations and hedge funds, or doing crude econometric (read ‘guess work’) analysis for large institutions like the World Bank. They’re reward is probably making the rich richer, or at least keeping them rich.
Meanwhile down at the bottom, I’m not so sure whether the low return on the caring degrees shows how little we value this qualitative side of life, rather than the fact that degrees in such subjects maybe can’t teach you that much?!? I mean with caring, how much is there that you can’t learn on the job, honestly, or just learn at level 3.
Don’t get me wrong though, I think caring professions are very much underpaid.
As to creative arts… I’m not sure whether these are undervalued, difficult for me to say with any level of objectivity, although if these stats are anything to go by, it shows us that ‘society’ doesn’t value art very highly!
NB – The figures for men are a little different, check out the above study if yer interested!
This is YET MORE evidence of how private schools seem to play a crucial role in the reproduction of class inequality. The chain seems to be:
Go to a private school and get hot-housed
Get into a Russel Group university
Get a better paid job.
It also shows that we need to keep researching exactly how private schools confer advantages on children from rich backgrounds and on just exactly how material and cultural capital combine to get these kids better jobs as adults.
The above stats show all earners, including those who failed their GCSEs, so we’re not really comparing like with like when we compare highest and lowest SES categories, because so many people from the lowest SES category fail to get 5 A*-C grades at GCSE, which means they are much less likely to go to HE, which has a significant negative impact on their earnings at age 29.
With these stats we are going back to a cohort which sat their GCSEs over 10 years ago, so they are already dated, although in fairness, this is unavoidable with a longitudinal analysis such as this.
*Given that only 7% of UK children go to private school, and that most have to pay fees, attendance at private school strongly suggests that this is the top tenth decile of students by ‘social class’ background, so the top half of the top fifth.
At age 29 male graduates earn £13K more per year than those with 5*-Cs without a degree while women earn £10K per annum more.
Look at another way, this means that a degree should pay for itself after just four years if you’re a woman, and three years if your a man…
I calculated these figures based on research into the impact of degrees on future earnings at the age of 29 conducted by the Institute for Fiscal Studies.
If you look at the wages earned by HE graduates compared to people who got 5 A*-Cs at age 29, then female HE graduates earn £10K more per year before tax, while men earn £13K more per year, again after tax.
If we reduce this difference a little to take account of taxation, then we get the figures above: a degree pays back in earnings after just 3 years for men and 4 years for women, at least once they reach the age of 29.
All of this assumes tuition fess are £9K a year for 3 years, and doesn’t take into account the opportunity cost of HE students not having earned anywhere near as much for 3 years while studying compared to non HE students.
Having said that, I think it’s fair enough to take a long term view, and look at things 6-7 years or so after graduating… a degree is a long term investment after all.
My tax calculations are also approximate.
NB – the above figures are averages, and there are considerable variations on this depending on the subject you choose to study, and other factors such as your class background. For more info on the study, you might also like this post!
In this Channel 5 series, one family in the ‘wealthiest 10%’ of Britain swap lives for a week with a family in the ‘poorest 10% of Britain’. As I see it this programme performs an ‘ideological control function’ – spreading the myth of meritocracy.
They two families swap houses, budgets and leisure-timetables for a week – in episode two for example, the poor family, living on the rich family’s typical weekly disposable income, have to live off about £3000 per week, while the rich family, have to live off just under £200 per week, and in this episode, both families seem to be genuinely hard working and just, well, nice.
The meat of the programme consists of watching the families hanging out in their respective houses, doing whatever activities the other family would normally do, and meeting their respective friends/ work colleagues, including some running reflections on how ‘nice’ it is to be rich, and what a ‘struggle’ it is to be poor.
Here’s how the programme performs the function of ideological control – basically it spreads the ‘myth of meritocracy‘.
It misrepresents what the top 10% look like – the narration keeps talking about how the rich family is in the top 10%, they are, but their weekly disposable income of over £3K, and the fact that they own 12 restaurants and employ 60 odd people, puts them easily in the top 1%. This fact alone really annoys me – it is the extreme minority that lives like this. I worked this out using the IFS’ income calculator)
The family in the top 1% are further unrepresentative in that the father genuinely worked his way up after failing school, cleaning toilets and then getting into restauranteering. This is most definitely NOT how the majority get into the top 1%, especially since social mobility has been declining in recent years.
The working class father keeps saying ‘I want my children to see this and want this’ – he seems to take the experience of his week in the rich mans world as evidence that anyone can make it if you try hard enough – in fact there is LESS CHANCE TODAY HIS KIDS than he would have had to climb the career ladder.
Maybe the same point as above – the working class guy has 4 kids – I wonder what the actual chances of all four kids from one working class family independently becoming millionaires actually are? It’s probably lottery odds.
The ‘luck’ word is mentioned once, apparently it’s all about hard work. NO – this view is just plain wrong, Malcome Gladwell convinced me of this in his book ‘Outliers’
Personally I think this series (if it carries on this vein) is lazy and appalling television – it wouldn’t take much to add in some depth analysis, have some commentary or stats overlying how likely it is for someone to go from working class to millionnaire, for example.
There’s also absolutely no mention of the sheer injustice of the fact that both sets of parents are doing similar amounts of ‘work’ but the rewards are so incredibly different, and no mention of how good it is that we’ve got social housing so at least the poor family have a decent house.
In short, my intense dislike of this show stems from the misleading portrayal of the richest 1% as representing the richest 10% and from its total lack of analysis of the actual chances of social mobility occurring.
NB – It was also quite dull viewing. If you think it sounds a little like Wife Swap, it’s much less entertaining as it’s the whole family doing the swapping, so there’s much less conflict.
Being in poverty has a negative affect on an individual’s life chances. Being poor means you’ll struggle to make ends-meet, you’ll be stuck renting rather than buying your own house, you’ll probably be in stuck in a debt-cycle, your kids are more likely to fail their GCSEs, you’re more likely to a victim of crime, less likely to feel like you’ll belong, you’ll feel more miserable, and suffer more mental health problems during the course of your life. You’re also much less likely to save sufficient money towards your pension, but fortunately that won’t matter, because you’re also likely to die younger, so at least you won’t suffer for too many years in old-age.
This post explores some of the statistical evidence on the relationship between poverty and life chances, looking at a range of evidence collected by the office for national statistics and other agencies such as the Joseph Rowntree Foundation. The point of this post is simply to provide an overview of the statistics, and offer something of a critique of the limitations of these statistics. I’ll also provide some links to useful sources which students can then use to explore the data further.
Most of the statistics in this post use a relative measurement of poverty based on the Joseph Rowntree Foundation’s definition of a low income household which is defined as one which has income of 60% of the average income, roughly equivalent to £7500 for single person households and £11000/ year for two person, or couple households in 2014-15.
According to this measurement there were 13.5 million people, or 21% of the U.K. population living in low-income households in 2014/15 (1).
Life chances simply refers to your chances of achieving positive outcomes and avoiding negative outcomes throughout the course of your life – such as succeeding in education, being happy, or avoiding divorce, poor health and an early, painful death.
How poverty affects life chances – in six statistics
One – the poorest fifth are at least FIVE times as likely to be able to keep up with paying bills compared to the richest fifth
Almost half of all families with children in the poorest 20% find it ‘difficult to make ends meet’. A fifth are unable to keep up with bills.
This compares to 10% and approximately 3% respectively for the richest fifth of households.
Two – Housing: people renting are 3-4 times more likely to be in poverty than owner-occupiers
The Joseph Rowntree Foundation notes that ‘11% of owner-occupiers live in poverty after housing costs, over two in five (42 per cent) of all social rented sector tenants and over a third of private rented sector tenants (36 per cent) live in poverty (DWP, 2015b). The extent to which housing costs contribute to poverty levels is particularly acute in the private rented sector with poverty levels in this tenure doubling from 18 to 36 per cent when housing costs are taken into account.’
Rent accounts for at least a third of income for more than 70% of private renters in poverty.
Three – poor people are FOUR TIMES more likely to be in debt
Living in a ‘low income’ household (or being ‘in poverty’) is strongly correlated with being in debt – in 2014/15 20% of people in poverty were behind with a bill (excluding housing costs), compared to only 5% of households not in poverty.
Where a pupil’s family have claimed eligibility for free school meals in the School Census they are defined as eligible for Free school meal (FSM).
In 2016, 13.4% of pupils at the end of key stage 4 were eligible for free school meals, compared to 13.8% in 2015.
Pupils are defined as disadvantaged if they are known to have been eligible for free school meals in the past six years (from year 6 to year 11), if they are recorded as having been looked after for at least one day or if they are recorded as having been adopted from care.
In 2016, 27.7% of pupils at the end of key stage 4 were disadvantaged, 0.4 percentage points higher than 2015 (27.3%).
There was a 12.2 and 12.6 attainment gap between ‘disadvantaged’ and ‘Free School Meals’ pupils respectively in 2016.