Monday, September 01, 2008
The disappearing graduate premium
The creation of a market in higher education by this Labour government and its dire consequences for those seeking to go to university has long been a theme of this blog.
Labour argue that every degree carries a graduate premium, whereby the recipient is able to command higher wages in the market place. As such they believe that it is only right that each graduate should pay a deferred fee to enter this elevated plane of employment.
In reality the driving force behind tuition fees has nothing to do with such market forces at all. The graduate premium is a convenient argument to hide the fact that the government target, that 50% of all 18 year olds should go onto higher education, costs more than Ministers are prepared to pay.
In pursuing this goal Labour have abandoned the key principle of free education and effectively limited opportunity for a significant minority of debt-averse students, who have now been denied the chance to fulfil their potential. Those who can no longer afford to go to university are forced to enter the labour market at a different level, denying the economy graduates who might add to its wealth.
This is the other flaw of Labour's argument. Their claims about the graduate premium deny the fact that education is an investment, not just in those individuals who immediately benefit, but also in the economy itself. Graduates are the industrialists, businessmen, doctors, scientists, and researchers of the future.
By charging this future workforce to enter that market place Labour are forcing them to choose their profession on the basis of the return they can get for their investment, rather than on the needs of the state or where their skills lie. In many cases the two interests will coincide but often they will not and our economy is be the poorer for that mis-match.
Now new research has shown that by creating more graduates Labour has also undermined its own rationale for tuition fees. One third of graduates now gain no financial benefit from having a degree, according to new figures. Among male graduates 33.2 per cent end up in non-graduate jobs five years after leaving university, compared with 21.7 per cent in 1992, while the proportions for women are similar. The worst affected were from the former polytechnics and other new universities encouraged to expand under the Labour government.
These figures not only question the justification for tuition fees but also pose a more fundamental question: is the drive to put as many young people through university as possible in their best interests and in the best interests of the economy?
There are other routes into well-remunerated employment that do not have a £20,000 plus post-graduate debt attached to them. Vocational routes are equally as valid as academic ones and in many cases can play better to the skills and abilities of those taking them.
It is vital that this government invests in those alternative routes to education and training whilst removing the barriers they have put in place to those of a more academic disposition. Such a course will not solve the credit crunch in the short term but it will help to guarantee our long term economic future.
Labour argue that every degree carries a graduate premium, whereby the recipient is able to command higher wages in the market place. As such they believe that it is only right that each graduate should pay a deferred fee to enter this elevated plane of employment.
In reality the driving force behind tuition fees has nothing to do with such market forces at all. The graduate premium is a convenient argument to hide the fact that the government target, that 50% of all 18 year olds should go onto higher education, costs more than Ministers are prepared to pay.
In pursuing this goal Labour have abandoned the key principle of free education and effectively limited opportunity for a significant minority of debt-averse students, who have now been denied the chance to fulfil their potential. Those who can no longer afford to go to university are forced to enter the labour market at a different level, denying the economy graduates who might add to its wealth.
This is the other flaw of Labour's argument. Their claims about the graduate premium deny the fact that education is an investment, not just in those individuals who immediately benefit, but also in the economy itself. Graduates are the industrialists, businessmen, doctors, scientists, and researchers of the future.
By charging this future workforce to enter that market place Labour are forcing them to choose their profession on the basis of the return they can get for their investment, rather than on the needs of the state or where their skills lie. In many cases the two interests will coincide but often they will not and our economy is be the poorer for that mis-match.
Now new research has shown that by creating more graduates Labour has also undermined its own rationale for tuition fees. One third of graduates now gain no financial benefit from having a degree, according to new figures. Among male graduates 33.2 per cent end up in non-graduate jobs five years after leaving university, compared with 21.7 per cent in 1992, while the proportions for women are similar. The worst affected were from the former polytechnics and other new universities encouraged to expand under the Labour government.
These figures not only question the justification for tuition fees but also pose a more fundamental question: is the drive to put as many young people through university as possible in their best interests and in the best interests of the economy?
There are other routes into well-remunerated employment that do not have a £20,000 plus post-graduate debt attached to them. Vocational routes are equally as valid as academic ones and in many cases can play better to the skills and abilities of those taking them.
It is vital that this government invests in those alternative routes to education and training whilst removing the barriers they have put in place to those of a more academic disposition. Such a course will not solve the credit crunch in the short term but it will help to guarantee our long term economic future.
Labels: Fees
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Have to agree with your logic Peter. All pupils should have access to some kind of meaningful job related training. Apprenticeships with one or two days a week at college being just one example. I don't know why Labour thinks one size pants fit all.
Also, I never understood the Labour logic behind destroying the very best things about polytechnics. Their non-degree (e.g., ONC/OND, HNC/HND) and CNAA undergraduate and graduate degree courses were very focused on jobs after college.
How would I know? Well, I elected to do a CNAA masters degree in biotechnology at Lancashire Polytechnic, the course was very focused on industry. We did an industrial placement.
Also, I never understood the Labour logic behind destroying the very best things about polytechnics. Their non-degree (e.g., ONC/OND, HNC/HND) and CNAA undergraduate and graduate degree courses were very focused on jobs after college.
How would I know? Well, I elected to do a CNAA masters degree in biotechnology at Lancashire Polytechnic, the course was very focused on industry. We did an industrial placement.
# posted by 
: 12:55 PM
: 12:55 PM
Lets face facts Peter, if a graduate want's to get a proper job, that pays £20k plus per year they would have to move to England.
When I was leaving university in the late 1980's we were told that there were no jobs in Wales and we would have to move away to get work.
It is a fundamental failing of the Welsh Assembly Government that it hasn't created jobs and employment of the people of Wales during it's existance, and the good economic times we've had over the past ten years. Classic example of this is the white elephant that is the Baglan Energy Park, the Flagship of the WDA.
G. Lewis
Bridgend Lib Dems
When I was leaving university in the late 1980's we were told that there were no jobs in Wales and we would have to move away to get work.
It is a fundamental failing of the Welsh Assembly Government that it hasn't created jobs and employment of the people of Wales during it's existance, and the good economic times we've had over the past ten years. Classic example of this is the white elephant that is the Baglan Energy Park, the Flagship of the WDA.
G. Lewis
Bridgend Lib Dems
# posted by : 8:37 AM
: 8:37 AM
"It is a fundamental failing of the Welsh Assembly Government that it hasn't created jobs and employment of the people of Wales during it's existance ..."
Can't fault you there - from an Ignorant Stupid American who wanted to stay in Wales, but couldn't find decent work in the private sector (jobs in the public sector, but I didn't want to work in the PS). After doing 'tins' at Merretts for some months (even after getting an advanced degree in biotechnology), thought I should head out of Wales, but miss the place terribly. "I'll be back." ;-)
Can't fault you there - from an Ignorant Stupid American who wanted to stay in Wales, but couldn't find decent work in the private sector (jobs in the public sector, but I didn't want to work in the PS). After doing 'tins' at Merretts for some months (even after getting an advanced degree in biotechnology), thought I should head out of Wales, but miss the place terribly. "I'll be back." ;-)
# posted by : 8:22 PM
: 8:22 PM
Yep! The US of A is a land of opportunity, unfortunately, Wales isn't. Well done Rhodri & your little helpers from the Nationalists.
Whilst staying in Boston in March this year, we did get around to the subject of job & employment and the complete lack of opportunities in Wales with our American friends.
She is a nurse working in Boston Area Hospital, originally from Canada, but easily found a job nursing in the States, she was quite surprised that more professional people from the UK didn't come over to the US to work!
I understand that the College of Nursing in Swansea is producing several hundred graduate nurses each year, and has done so for a number of years now. Whilst my mum was recovering from a hip replacement June 2007 in the Princess of Wales Hospital I asked one of the student nurses has she got a job yet? The reply came back, "I've applied for a Staff Nurse Job on the ward opposite, but apparently there are 85 applicants" (One Job 85 Applicants!)
Even for those with qualifications and professional standing in our Welsh society, there aren't jobs!!!!!
One thing I would say to any young person leaving college or university, especially with a medical or social care qualification, consider the States as a possible place to get a job, Saudi is another place where you could develop a career and a lifestyle you could come accustomed. Australia or New Zealand should also be considered.
Ignorant Stupid American – how much are your friends and relatives paying for gas (petrol) back in the States?
Petrol is around £1.25 per litre in and around Bridgend; I’m aware that US gals are smaller than UK gallons, so this would be £4.38 per US gal (3½ litres) with the exchange rate of £1 = $1.77.
$7.75 per US gal
Most of which is duty and taxation! Didn’t you “Ignorant, Stupid Americans” have some sort of Tea Party in Massachusetts over taxation or something us limes tried to impose on you.
How to cripple an economy, high fuel taxes and duty!!!!
G. Lewis
Bridgend Lib Dems
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Whilst staying in Boston in March this year, we did get around to the subject of job & employment and the complete lack of opportunities in Wales with our American friends.
She is a nurse working in Boston Area Hospital, originally from Canada, but easily found a job nursing in the States, she was quite surprised that more professional people from the UK didn't come over to the US to work!
I understand that the College of Nursing in Swansea is producing several hundred graduate nurses each year, and has done so for a number of years now. Whilst my mum was recovering from a hip replacement June 2007 in the Princess of Wales Hospital I asked one of the student nurses has she got a job yet? The reply came back, "I've applied for a Staff Nurse Job on the ward opposite, but apparently there are 85 applicants" (One Job 85 Applicants!)
Even for those with qualifications and professional standing in our Welsh society, there aren't jobs!!!!!
One thing I would say to any young person leaving college or university, especially with a medical or social care qualification, consider the States as a possible place to get a job, Saudi is another place where you could develop a career and a lifestyle you could come accustomed. Australia or New Zealand should also be considered.
Ignorant Stupid American – how much are your friends and relatives paying for gas (petrol) back in the States?
Petrol is around £1.25 per litre in and around Bridgend; I’m aware that US gals are smaller than UK gallons, so this would be £4.38 per US gal (3½ litres) with the exchange rate of £1 = $1.77.
$7.75 per US gal
Most of which is duty and taxation! Didn’t you “Ignorant, Stupid Americans” have some sort of Tea Party in Massachusetts over taxation or something us limes tried to impose on you.
How to cripple an economy, high fuel taxes and duty!!!!
G. Lewis
Bridgend Lib Dems
# posted by : 9:09 AM
: 9:09 AM<< Home
