Graduates from wealthy homes are better paid

GRADUATES from wealthy backgrounds earn thousands of pounds more than their peers from poorer households despite studying the same degrees at the same universities, a report has found.

According to the research, students who come from the richest households earn around 10 per cent more 10 years after graduating.

This equates to an average £3,300 extra for men and £2,100 for women, when taking into account the university and subject studied.

Across all universities, male graduates from wealthy backgrounds earn on average £8,000 a year more than their less advantaged peers, while female graduates earn £5,300 more.

The research, carried out by the Institute for Fiscal Studies (IFS), the Institute of Education at University College London, Harvard, and Cambridge University, looked at the link between earnings and family background, using tax data and the student loan records of 260,000 graduates.

They found that, despite studying at the same universities for the same degrees, a student’s background could have a “significant” impact on earnings. The findings raised concerns that too little is being done to help students from poorer backgrounds access top careers.

Dr Lee Elliot Major, of the Sutton Trust, an education foundation, said the report showed that social mobility remained “poor in the UK”.

“Students from better-off backgrounds are more likely to go to universities and take subjects with better career prospects,” he said. “But even allowing for these choices, they still earn more which suggests that we all need to redouble efforts to improve the networks available to undergraduates, their access to internships and their access to skills valued by employers.”

The report also highlighted big variations in the salaries that degrees command, with medical students revealed as the highest average earners and creative arts graduates earning, on average, no more than non-graduates.