The college wage premium in the UK: decline and fall?

C-Tier
Journal: Oxford Economic Papers
Year: 2025
Volume: 77
Issue: 1
Pages: 1-18

Authors (4)

Gianna Boero (not in RePEc) Tej Nathwani (not in RePEc) Robin Naylor (not in RePEc) Jeremy Smith (University of Warwick)

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We exploit two longitudinal cohort studies for birth cohorts of 1970 and 1990 to assess the change in the UK college wage premium (CWP) for those aged 25–26 years. After controlling for a rich set of covariates, we find evidence of a decline in the average CWP from 18 per cent to 8 per cent. The extent of the fall is common to men and women; hence, it is not driven by changes in sex composition over this time period. Our results contrast with previous findings of relative stability in the CWP over time. In a complementary analysis, we exploit Labour Force Survey (LFS) data from 1995 to 2019 to explore the timing of the fall in the CWP and to assess whether the decline is specific to particular birth cohorts or age ranges of workers.

Technical Details

RePEc Handle
repec:oup:oxecpp:v:77:y:2025:i:1:p:1-18.
Journal Field
General
Author Count
4
Added to Database
2026-01-29