By Mark Smulian | 15 August 2013
Around one-fifth of the UK’s economic growth in recent decades resulted from a rise in the number of university graduates, researchers have found.
The National Institute of Economic and Social Research said that – between 1982 and 2005 – 20% of total growth in gross domestic product could be attributed to the increased number of graduates over that period.
It found that a 1% increase in the share of the workforce with a university degree raises the level of long-run productivity of between 0.2% and 0.5%. The share of the UK workforce with a university education increased by 57% between 1994 and 2005, it said.
Publishing the research findings of The Relationship Between Graduates and Economic Growth Across Countries report today, universities and science minister David Willetts said: ‘A degree remains one of the best pathways to achieving a good job and a rewarding career – as well as a hugely enjoyable experience for most students.
‘The benefits of university go beyond individual graduates, with the economy greatly enhanced by having a highly-skilled university-educated workforce.’
The increased earnings available to graduates were more pronounced for women than for men, with female graduates able to expect to boost their lifetime earnings by £250,000, and men by £165,000 compared with non-graduates.
Willetts said: ‘The research on graduate earnings confirms previous findings showing a substantial financial benefit from gaining a degree.
‘This highlights that the regularly quoted average graduate premium of comfortably over £100,000 still holds, despite the substantial increase in graduates and a changing labour market.’
Ministers have been keen to demonstrate the value of university education given the controversy over the changes to the tuition fee system that took effect last year.
