An education at a prestigious university is a long-term aspiration for many prospective students. Exposure to world-class teaching, a network of high-calibre students and innovative research opportunities all make for a truly enriching experience like no other. Another key advantage of attending prestigious universities is promising career prospects – including high salaries after graduation.
But how much of this is true in reality? A recent report from the Institute of Fiscal Studies (IFS) revealed that graduates in England with first class or upper second class (2.1) degrees had higher average salaries by the age of 30 than graduates with lower second class (2.2) degrees – regardless of institution.
Ben Waltmann, Senior Research Economist at IFS and a co-author of the report said: “The findings imply degree classification may matter as much as university attended for later life earnings.”
Figures from the report show that five years after graduation, median annual pre-tax earnings for both men and women who graduated with a 2.2 degree in 2013 were £3,800 lower than those who obtained a 2.1. Despite being a UK based study, prospective students from around the world are advised to take note as “many graduates who get a 2.2 from a highly selective university might have got a higher-paying job had they attended a slightly less selective university and got a 2.1.”
What you study can also affect future earnings

The report also highlights that future earnings for higher class degrees vary hugely by subject. Jack Britton, Associate Director at IFS and a co-author of the report said: “For many subjects, the difference between a first and a 2.1 is inconsequential for earnings. However, for others, such as economics, law, business, computing and pharmacology, it is substantial.”
Higher earning potential can be linked to subjects that often have high labour market returns. According to Glassdoor, the highest paying majors include subjects such as computer science, with a median base salary of USD$70,000 five years after graduation. The top 10 is also dominated by engineering subjects, with electrical engineering and mechanical engineering taking second and third place respectively.
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Highest paying subjects, according to Glassdoor |
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|
Rank |
Subject |
Median Base Salary in USD |
|
1 |
Computer Science |
$70,000 |
|
2 |
Electrical Engineering |
$68,438 |
|
3 |
Mechanical Engineering |
$68,000 |
|
4 |
Chemical Engineering |
$65,000 |
|
5 |
Industrial Engineering |
$64,381 |
|
6 |
Information Technology |
$64,008 |
|
7 |
Civil Engineering |
$61,500 |
|
8 |
Statistics |
$60,000 |
|
9 |
Nursing |
$58,928 |
|
10 |
Management Information Systems |
$58,000 |
For students considering lucrative careers, it’s worth bearing in mind that where you study, what you study and how well you perform can all play a part in determining future earnings.





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