Social mobility Are universities worth it? A review of the evidence and policy options 20 January 2025 David Willetts Young graduates earn £5,000 more annually than non-graduates, but that premium is lower than it was 10 years ago. The real earnings of young graduates have been broadly flat over the last decade, similar to earnings overall, whereas non-graduate earnings have been boosted by the minimum wage. But graduates individually do continue to enjoy rises in their earnings year on year – much higher than non-graduates, Willetts says. Moreover, graduates remain in the workforce for longer and enjoy increases in earnings out into middle age, unlike people with job-specific vocational qualifications. But much of the debate ignores these long-lasting benefits – a classic example of the problems of short-termism, Willetts writes. Assessing university performance by looking at what graduates are doing 15 months after graduation is another vivid example of this short-termism, he says. Overall, an undergraduate degree is estimated to be worth on average £280,000 for men and £190,000 for women, net of tax and student loan repayments, relative to what a graduate would have earned over their lifetime had they not gone to university. This paper was published by the Policy Institute at King’s College London, where David Willetts is a visiting professor.
