Downloads

WP202124-How-much-does-degree-choice-matter.pdf
PDF | 5.79 MB

Appendix
XLS | 626 KB
Using a large and novel administrative dataset, this paper investigates variation in returns to different higher education ‘degrees’ (subject-institution combinations) in the United Kingdom. Conditioning on a rich set background characteristics, it finds substantial variation in returns, even within subject, across universities with very similar selectivity levels, suggesting degree choices matter a lot for later-life earnings. Selectivity is weakly related to returns through most of the distribution but strongly positively correlated at the top end. Other than selectivity, returns are poorly correlated with observable degree characteristics, which has implications for student choices and the incentives of universities.
Authors



Research Fellow
Luke is a Research Fellow at the IFS and his general research interests include education policy, political economy and poverty and inequality.


Associate Director
Jack's main interests lie in human capital accumulation and discrete choice dynamic modelling.





Working Paper details
- DOI
- 10.1920/wp.ifs.2021.2421
- Publisher
- Institute for Fiscal Studies
Suggested citation
Belfield, C et al. (2021). How much does degree choice matter?. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/how-much-does-degree-choice-matter (accessed: 15 June 2025).
More from IFS
Understand this issue

Sure Start’s wide-ranging and long-lasting benefits highlight the impact of integrated early years services
Over the long run, Sure Start’s financial benefits could be twice as high as its costs
22 May 2025

Spending Review 2025: What it means and why it matters
We take a closer look at the Spending Review and what the policies mean for public services, investment and the wider economy.
12 June 2025

Drastic times need drastic action: breaking the 50-year tax taboo
Rachel Reeves should consider increasing the basic rate, just as Denis Healey did in 1975
14 April 2025
Policy analysis

Using graduate earnings data in the regulation of higher education providers
This report explores options for incorporating administrative records on graduate earnings into the OfS’ regulation of higher education in England.
29 May 2025

Schools and colleges in the 2025 Spending Review
This report sets out the context of and choices facing the government on schools and colleges in England ahead of the 2025 Spending Review.
28 May 2025

Benefits - and costs - of expanding access to free school meals will grow over time
Expanded access to free school meals will benefit 1.7 million children in the long run, but existing transitional protections limit effects next year.
4 June 2025
Academic research

The impact of labour demand shocks when occupational labour supplies are heterogeneous
We develop a tractable equilibrium model of the labour market with heterogeneous labour supply elasticities by occupation and across occupation pairs.
8 April 2025

The menopause "penalty"
We show that a menopause diagnosis leads to lasting drops in earnings and employment, alongside greater reliance on social transfers.
21 March 2025

Police infrastructure, police performance, and crime: evidence from austerity cuts
Focusing on a wave of austerity cuts, I show that police station closure increased violent crimes in census blocks near the defunct stations.
27 March 2025