University study helps boost earning, economy

Two reports issued by British government on Thursday showed that university study delivers huge benefits to both graduates' earnings and the British economy. The two new reports, titled "Impact of University Degrees on the Lifecycle of Earnings" and "Relationship Between Graduates and Economic Growth Across Countries," are respectively issued by the Department for Business, Innovation and Skills, and the Department for Education. The study compared the earning and employment of people who have a first degree and two or more A-levels with those with two or more A-levels and no higher education degree, aiming to help young people make better decisions about their future. "An increase in the number of graduates accounts for around 20 percent of British economy growth between 1982 and 2005, and at least a third of the increase in labor productivity from 1994 to 2005," the reports said. Based on the study, a 1-percent increase in the share of the workforce with a university degree raises long-run productivity by between 0.2 percent and 0.5 percent when taking indirect benefits into account by using econometric analysis. The research also found that female students who progress to university can expect to boost their lifetime earnings by 250,000 pounds (390,000 U.S. dollars), and male students to increase their lifetime earnings by 165,000 pounds. British Universities and Science Minister David Willetts said that the new data highlighted what a great long-term investment university is. "A degree remains one of the best pathways to achieving a good job and a rewarding career -- as well as a hugely enjoyable experience for most students," Willetts added.