Advertisement
News

Wage gaps between rich and poor graduates persist years after university  

Figures from the Department for Education show a clear earnings disparity between graduates who were once eligible for free school meals and those who weren’t

Even though they attain the same degree, graduates born into more privileged backgrounds achieve greater financial success than their contemporaries from less well-off circumstances immediately after leaving university.

New figures on graduate earnings released by the government, while not only showing a widening wage gap between male and female students, show a disparity between graduates who were eligible for free school meals while in lower education and those who weren’t.

Pupils on free school meals throughout early education are likely to earn £3,000 less five years after graduating than those who didn’t receive them. Graduate earnings are continuing to raise year on year but the gaps prevail and are expanding, the report shows.

Gender wage gap

The wage gap between male and female graduates has been growing steadily over the past three years too, the figures suggest, with a £3,600 wage difference between them five years after graduating. But the gap between ethnic and social backgrounds is now being investigated.

Students withA-level (or equivalent) resultsof three As or more are likely to earn £5,000 more a year after graduation that those who were graded B and Cs and £7,000 more than those with three Cs or less.

Anna Vignoles, professor at the University of Cambridge said in a 2014 study that:“The raw differences are large: we find that, 3.5 years after leaving university, graduates who attended private schools earn 17 per cent more per year, on average, than those who attended state schools.

Advertising helps fund Big Issue’s mission to end poverty
Advertisement

“Some of the ‘private school premium’ appears to arise from the fact that these students have higher achievement prior to entering university and are more likely to attend institutions and study subjects which elicit high wage returns.”

The gaps do not end at class. The research shows that Pakistani graduates are also falling victim, earning £6,000 less annually than white graduates more than a decade after achieving their degree. In fact, black Caribbean and Bangladeshi graduates are all seen to earn less than that of white, Chinese and Indian origin.

Image: iStock

Advertising helps fund Big Issue’s mission to end poverty

Do you know how Big Issue 'really' works?

Watch this simple explanation.

Recommended for you

Read All
The football food van serving up jobs for out-of-work young people
Stuffed Gourmet Trailers food van outside St Mary's Stadium in Southampton
Food

The football food van serving up jobs for out-of-work young people

Fat Macy's: The training academy lifting young people out of homelessness and into hospitality jobs
A young person being trained in the kitchen at Fat Macy's
Employment

Fat Macy's: The training academy lifting young people out of homelessness and into hospitality jobs

How will the government end rough sleeping? We asked the homelessness minister
Homelessness minister Florence Eshalomi and prime minister Andy Burnham.
Homelessness

How will the government end rough sleeping? We asked the homelessness minister

The government wants you to buy tinned food to prepare for a crisis. What if you can't afford it?
images of fruit and vegetables on cans to showcase food poverty
Food

The government wants you to buy tinned food to prepare for a crisis. What if you can't afford it?

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payments: Where to get help in 2025 now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payments: Where to get help in 2025 now the scheme is over

Citroën Ami: the tiny electric vehicle driving change with The Big Issue
4.

Citroën Ami: the tiny electric vehicle driving change with The Big Issue