Report | Education pathways: Equality gaps in earnings and employment

^{16 July 2024}

Summary

Higher levels of education are good for the individual and society. Higher education has the potential to drive social mobility, providing a possible route for students from all backgrounds to achieve labour market success and higher earnings. Research has also shown that graduates enjoy non-financial benefits too, such as better health and longer life expectancy. 

How students convert their education qualifications in the labour market is an important question for students, parents and policy makers alike. To better understand the various benefits of higher education, TASO commissioned research to understand the individual and societal impacts of disadvantaged young people graduating from higher education courses.

The analysis set out in this report reveals that educational qualifications are clearly and unambiguously associated with both increased earnings and likelihood of being in employment, compared to no qualifications beyond Key Stage 4 qualifications (for example, GCSEs). However, there are variations in how different higher education qualifications increase earnings and likelihood of being in employment, with the greatest economic returns being from earning a degree at a higher tariff (or ‘top third’) university. 

While educational qualifications generally generate greater earnings, there are also differences in earnings by free school meal status, gender and race. Notably, gaps remain whatever qualification people gain, particularly by free school meal status. This may suggest other factors explain or drive these gaps, and that education alone cannot address them. 

This report focuses on the economic returns of educational qualifications. Higher education has other benefits, both for the individual and society. There is a case for further information and guidance for those considering higher education, to ensure they are better informed about the labour market as well as other benefits that flow from higher educational qualifications.

Read the report