Our Future Information Sheet 1: Participation in and Benefits of Higher Education

Our Future Information Sheet 1: Participation in and Benefits of Higher Education

Introduction

In the last 30 years, there has been a huge increase in the number of young people continuing their education and going on to university or college. In the 1980s, only about 10% of school leavers went on to university after leaving school. In 2012, 37% of school leavers went on to higher education, including those undertaking HNCs and HNDs at colleges, as well as those on degree programmes at university.This increase is in part due to the need for a more highly skilled workforce to work in areas such as IT and financial services. At the same time, participation in higher education has become a rite of passage for many young people. As explained below, higher education has benefits for both the individual and society. It should also be recognised that whilst on the whole graduates earn more and are more employable than non-graduates, university is not the only means of gaining a useful qualification. Modern Apprenticeships and work based training also provide an interesting and valuable route into employment.

This information sheet outlines (i) patterns of participation in higher education; (ii) the individual benefits of higher education; and (iii) the economic and social benefits of higher education.

Higher education participation

A growing proportion of young people in Scotland (and in other parts of the UK) enter higher education when they leave school. Figure 1.1 shows that higher education is the most common post-school destination in Scotland.

Figure 1.1:Destinations of Scottish school leavers, 2009-2012, percentages

Source: Scottish Government, 2013

The European Union sets targets in relation to participation in tertiary education. It should be noted that across Europe, there are slightly different understandings of what counts as tertiary and higher education, but the terms are broadly inter-changeable. Currently, the EU target is that by 2020 at least 40% of 30 to 34 year olds in all member states should have a tertiary-level qualification. Figure 1.2 compares Scotland, the UK and selected EU countries, showing that Scotland has already reached the 40% participation target, as has the rest of the UK. London stands out as having a very highly qualified population and is the only English region with higher rates of tertiary qualification than Scotland.

Figure 1.2:Percentage of population aged 30-34 with a tertiary qualification in selected European countries, 2012

Source: Eurostat, 2013

It is also important to note that across Scotland and the rest of the UK there is much variation in higher education participation, as shown in Figure 1.3. For example, in poorer parts of Glasgow and Edinburgh, less than 20% of the population has higher education qualifications, compared with more than 50% in more affluent areas.

Figure 1.3 Levels of qualification amongst people aged 16-74

Source: Nomis Official Labour Market Statistics, Census 2001

In the following sections, we discuss the individual and public benefits of higher education participation, as well as the reasons underpinning young people’s choices.

The personal benefits of going to university

Going to university provides individuals with the opportunity to:

• Gain in-depth knowledge of a particular subject and engage in learning for its own sake.
• Develop vocational knowledge and skills which enable entry to a particular job or profession (e.g. teaching, medicine).
• Increase lifetime earnings compared with non-graduates.
• Make friends, meet future life partners and develop social networks.

In 2011, the Department for Business, Innovation and Skills (BIS) published a report on the financial value to the individual of holding a degree, sometimes known as the graduate premium. The BIS report suggested that in 2010, employees with a degree earned 85% more than those educated to Standard Grade/GCSE level. In 1993, the margin stood at 95%. This suggests that the graduate premium has reduced over time, reflecting the fact that a higher proportion of the population is qualified to degree-level. There are alsodifferences in the graduate premium associated with the university attended and the subject studied, with subjects such as law and medicine delivering higher lifetime earnings (Conlan and Patrignani, 2011). Men with higher education qualifications tend, on average, to earn more than women, who spend less time in the full-time labour market. For some people, the graduate premium is greater than the average, whilst for others it is less or even negative. The premium does not compare higher education with other types of study beyond 16, such as Further Education or a Modern Apprenticeship, although most studies show that higher education has higher financial returns. Furthermore,the BIS figures do not take into account the loss of earnings due to graduates' delayed entry into the full-time labour market. Despite these caveats, Eurostat data show that, across Europe, those with higher education qualifications are more likely to have a job than those with medium or low level qualifications.

The economic and societal benefits of higher education

A research paper published by the Department for Business Innovation and Skills in 2013 pointed to the societal benefits of higher education, as well as those which accrue to the individual. These are summarised in the upper half ofFigure 1.4 and include greater social cohesion, social mobility, increased tax revenues and faster economic growth.

Figure 1.4:The benefits of higher education for individuals and society

Source:Brennan at al.,2013

However, some argue that many young people gain little benefit from higher education, and would be educationally and economically better off by entering a Modern Apprenticeship or other form of vocational training instead. Others suggest that many people would gain more benefit from university if they attended later in life rather than directly after school.

The contribution of universities to the Scottish economy

Universities not only teach students but they are also central to Scotland’s economy. According to a report published by the HM Government in 2013 (HM Government, 2013), universities conduct much of the research which contributes to scientific knowledge and cultural development. They collaborate with businesses in order to facilitate the translation of research into new products or services. Universities are also a key economic sector in their own right. A 2010 Universities Scotland report estimates that the 19 HEIs in Scotland contributed £6.2 billion annually to the Scottish economy (BiGGAR Economics, 2010). Universities are also large recruiters, employing around 39,000 people. The Institute for Public Policy Research (IPPR) estimates that the employment effect of universities in the UK is almost double the number directly employed. According to this research, for every university job there is a second job in the local economy generated through knock-on effects.

Young people’s views of the benefits of higher education

In the first section of the film young people identified some of the benefits of going to university or college, including opportunities to develop independent lives away from the family home. They also pointed to the employment benefits of having a degree. Shannon from West Lothian said:

I just feel that employers look at you more [with a degree]. You’ve got like a higher social class if you’ve been to uni. So they’ll see your CV and if they see you’ve been to Edinburgh University, like a really good university, they automatically go ‘oh, that person’s good enough to go to university. Maybe they’re good enough to do this job’.

We also spoke to some college students when making our film. Megan, a student at Glasgow Clyde College, explained that going to college has given her more confidence. Other students said it had allowed them to pursue a course they were interested in which was not offered at their school. Taylor, another college student, pointed to the benefits of going to college before university:

I think it would help if you did college before because it gives you the insight to it as well […] It’s a different environment and you’re treated differently. And you’ve got more independence really. So I think it’d be better going from college rather than straight from school to university. (Taylor, Glasgow)

Despite the fact that many young people want to go into higher education, some of our interviewees pointed to the lack of jobs and the high risk of graduate under-employment. Yusaffrom Fife said:

I think the main downside is you hear stories of people who get good degrees and they end up working in phone shops or ASDA. And it makes you think that you could spend four years getting a degree and then all of a sudden at the end of it you might not have a job in what you want to be doing, which is quite a concern.

Conclusion

Higher education is of great personal and publicbenefit. Questions therefore arise with regard to how universities should be funded, including the financial burden which should be carried by the individual and the wider society. This is the topic of Information Sheet 2.

References

BiGGAR Economics (2010) The contribution of Scottish Universities: A report to Universities Scotland. Edinburgh: Universities Scotland.

Brennan, J., Durazzi, N., and Sene, T. (2013) Things we know and don’t know about the Wider benefits of Higher Education: A review of the recent literature. BIS Research Paper Number 133. London: Department for Business, Innovation and Skills.

Conlan, C. and Patrignani, P. (2011) The Returns to Higher Education Qualifications. BIS Research Paper Number 45. London: Department for Business, Innovation and Skills.

Eurostat (2013) Tertiary education statistics.

HM Government (2013) Scotland analysis: science and research, London: HM Government

Institute for Public Policy Research (2013) Beyond bricks and mortar boards: universities’ role in building regional economies.

Nomis Official Labour Market Statistics (2011) Census 2001

Scottish Enterprise (2012) The Economic Impacts of Scottish Universities.

Scottish Government (2013) Summary statistics for attainment, leaver destinations and healthy living, No 3, 2013 edition.

Participation in and Benefits of Higher Education

Suggested classroom activities

Activity 1: Group discussion on the benefits of higher education

In small groups, pupils can discuss the benefits of higher education to the individual and to the wider society, using reference materials to check the accuracy of their views. They might wish to consider the following questions:

• What kind of work/job do you hope to get when you finish (school/ further studies)?
• What appeals to you about going on to study further?
• Should you choose your degree based on your likelihood of finding work, or your love of the subject?
• What do young people gain from going to university or college?
• What are the benefits of going to college prior to university rather than straight from school?
• How does society benefit from young people going to university?
• Does anything put you off going on to study further?

Activity 2: Research

Pupils can design an interview study or a survey investigating attitudes to higher education in their school. They should be encouraged to think carefully about the research methods they adopt, including sampling, data analysis and writing a report. Pupils could also conduct case study interviews with older relatives or friends about perceptions and experiences of higher education in earlier decades when fewer people attended university.

Activity 3: Classroom debate

Pupils can discuss the benefits of higher education to the twenty first century graduate. They might consider a number of propositions such as the following:

1. As more people obtain a university degree, the value of the qualification is declining. It would therefore be a good thing if fewer people went to university.
2. Those with higher education qualifications are more likely to be in employment and earn more over a lifetime, suggesting that more young people should be encouraged to attend university.

Activity 4: Role play

A group of friends discuss what they intend to do when they leave school. Some want to go to university, whilst others feel it would be better to get a job. Pupils should be encouraged to reflect on the arguments put forward, as well as the social factors which underpin pupils’ choices.

Project website: us on Twitter @Indy_Scot_HE

p.1 | Sheet 1: Benefits of HE