What are the most valuable degrees?

The most valuable degree you can do is economics, and the least valuable is health and social care. 

At least according to the latest research by the IFS on the impact of Higher Education on future earnings

The table below compares earnings at age 29 of female graduates compared to non graduates for different subject areas.

highest earning degree subjects.pngAs 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! 

 

Advertisements

The effect of private schools on future income

Men who went to a private school* go on to earn 78% more at age 29 than men who come from the lowest ‘social class’ quintile. 

Women who went to a private school* go on to earn 100% more at age 29 than women from the lowest ‘social class’ quintile.

private schools income.png

By age 29, men who had been to a private school earn on average £41 000 per annum, compared to only £23 000 per annum for those from the lowest SES background. 

The respective figures for women are £36 000 and £18000. 

Those who attended private school even earn considerably more on average than those from the top SES quintile. 

This is from the latest IFS study on the impact of Higher Education on future earnings

The significance of these statistics 

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. 

You might like to read this post for more detailed info

Limitations with these statistics 

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.