A study by the Institute of Fiscal Studies shows that graduates still reap the financial rewards of having a university degree.
A report issued by the Institute of Fiscal Studies reveals a financial incentive to earn a university degree. The study found graduates can expect to earn up to £14,000 more during the early years of their careers, with a university education being of particular advantage to women in the workplace.
The Institute of Fiscal Studies found that male graduates earn an average of £29,500 a year compared to £17,000 for those who didn't attend university, while female graduates earn £21,600 compared to £11,000.
Researchers for the report used tax data to assess the impact of a university of education on earnings. The authors of the report also used median salaries. which included a high volume of adults on low incomes.
The Institute found the average salary for graduates with a university degree was £25,000 for men, and £19,500 for women. The Institute reports this far outstrips the £10,500 and £6,500 annual average earnings for male and female non-graduates.
One of the authors of the report, Jack Britton, says a university education is a great way to improve future earnings.
"This study shows the value of a degree, in terms of providing protection from low income and shielding graduates from some of the negative impact of the recent recession on their wages," he says. "We find this to be particularly true for women."
Nicola Dandridge, Chief Executive of the representative body Universities UK, says studying for a degree is a life-long investment.
"[The report] shows that UK graduates continue to earn substantially more than non-graduates over a working lifetime," she says. "It reveals also that during the recession graduates fared better than non-graduates. We know that skilled graduates are increasingly in demand from employers, and the value of a degree is lifelong."