Alexandra Hansen15 October 2014 Issue No:339
Bachelor-degree graduates from Australia’s prestigious Group of Eight,
or Go8, and technology universities earn a greater amount over their
lifetimes than those from the lesser known and regional universities,
according to a new analysis that found their total income was 6% more
over a 40-year career.
For graduates with degrees in science or commerce, this equated to about A$200,000 (US$175,000) more over their career. The data showed that bachelor degree holders from top universities actually earned about 10% more over their lifetime, but this dropped four percentage points when social advantages were accounted for.
Go8 universities were more likely to enrol students with better previous school grades, students from private schools, and students with parents who had degrees and high profile jobs, says a report by an independent think tank, the Grattan Institute.
This means some of the difference could have been attributed to the fact that Go8 and technology universities enrol students who would have performed better anyway, rather than it being the effect of the university itself, the report states.
A much larger discrepancy was found in chosen course of study, with a law graduate earning A$300,000 (US$262,000) more than a science graduate over their career, and a science graduate earning up to A$1 million (US$875,000) more than a creative arts graduate.
“The report shows that when it comes to earnings, what you study matters more than where you study,” Grattan Institute researcher Andrew Norton said. “Studying engineering at any university is likely to lead to a higher salary than studying arts at a sandstone university."
Vice-chancellor of the regional Southern Cross University, Peter Lee, said he rejected any proposition that the quality of the education experience at a regional university was less than that at a city university, leading to lower salary outcomes.
Lee said there were many other factors, such as gender balance and salary differences between cities and regions, which could have explained the difference. For instance, Southern Cross University was made up of 73% female students, and females consistently earned less than males even when allowing for career gaps while family-raising.
Lee also said there are large salary differences between the city and the regions, attributing to some of the difference: “A lawyer in a big city law firm does earn more than a lawyer practising in a smaller firm in the regions.”
A higher education analyst at the University of Melbourne, Dr Geoff Sharrock, said the report’s most important finding where earnings are concerned, was that a student’s field of study was far more important than the university itself.
“Some fields pay much better than others, regardless of which university conferred the degree,” Sharrock said. “This suggests that students should choose their field of interest and ability first, and their institution second. In doing so, they may also factor in price differences and how much debt risk they are prepared to take on.”
In a comment on the report, Rosemary Stanton, a visiting fellow at the University of New South Wales, asked why was there an assumption that “earning a little more over a lifetime was a good thing?”
“It may mean that these people work longer hours and thus spend less time with their families, possibly impoverishing them in ways that have nothing to do with money,” Stanton said.
*Alexandra Hansen is an editor with The Conversation where this article was published.
For graduates with degrees in science or commerce, this equated to about A$200,000 (US$175,000) more over their career. The data showed that bachelor degree holders from top universities actually earned about 10% more over their lifetime, but this dropped four percentage points when social advantages were accounted for.
Go8 universities were more likely to enrol students with better previous school grades, students from private schools, and students with parents who had degrees and high profile jobs, says a report by an independent think tank, the Grattan Institute.
This means some of the difference could have been attributed to the fact that Go8 and technology universities enrol students who would have performed better anyway, rather than it being the effect of the university itself, the report states.
A much larger discrepancy was found in chosen course of study, with a law graduate earning A$300,000 (US$262,000) more than a science graduate over their career, and a science graduate earning up to A$1 million (US$875,000) more than a creative arts graduate.
“The report shows that when it comes to earnings, what you study matters more than where you study,” Grattan Institute researcher Andrew Norton said. “Studying engineering at any university is likely to lead to a higher salary than studying arts at a sandstone university."
Vice-chancellor of the regional Southern Cross University, Peter Lee, said he rejected any proposition that the quality of the education experience at a regional university was less than that at a city university, leading to lower salary outcomes.
Lee said there were many other factors, such as gender balance and salary differences between cities and regions, which could have explained the difference. For instance, Southern Cross University was made up of 73% female students, and females consistently earned less than males even when allowing for career gaps while family-raising.
Lee also said there are large salary differences between the city and the regions, attributing to some of the difference: “A lawyer in a big city law firm does earn more than a lawyer practising in a smaller firm in the regions.”
A higher education analyst at the University of Melbourne, Dr Geoff Sharrock, said the report’s most important finding where earnings are concerned, was that a student’s field of study was far more important than the university itself.
“Some fields pay much better than others, regardless of which university conferred the degree,” Sharrock said. “This suggests that students should choose their field of interest and ability first, and their institution second. In doing so, they may also factor in price differences and how much debt risk they are prepared to take on.”
In a comment on the report, Rosemary Stanton, a visiting fellow at the University of New South Wales, asked why was there an assumption that “earning a little more over a lifetime was a good thing?”
“It may mean that these people work longer hours and thus spend less time with their families, possibly impoverishing them in ways that have nothing to do with money,” Stanton said.
*Alexandra Hansen is an editor with The Conversation where this article was published.
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