London Daily

Focus on the big picture.
Wednesday, Sep 03, 2025

Degree grade matters more than university reputation, report finds

Degree grade matters more than university reputation, report finds

Graduates with good degree from less prestigious university earn more than those with lower-class degree from selective institution
Students are advised to be “more relaxed” about the reputation of the universities they want to attend, after new research revealed they could be better off graduating with a good degree from a less prestigious university than with a lower-class degree from a selective institution.

The report by the Institute for Fiscal Studies found that graduates in England with first-class or upper second class (2.1) honours degrees had higher average earnings by the age of 30 than those who finished with lower second-class (2.2) awards, regardless of institution – meaning that degree class was often more important than institutional reputation.

Figures in the report also suggested it was less difficult to obtain a higher-class degree outside selective universities with competitive entry requirements, despite those universities tending to award a larger proportion of 2.1s and firsts.

Ben Waltmann, senior research economist at IFS and a co-author of the report, said prospective students, parents and policymakers should take note of the findings, and be “more relaxed” about which institutions they aim to study at.

“The findings imply that degree classification may matter as much as university attended for later-life earnings,” Waltmann said.

“Going to a more selective university is good for future earnings, and the fact that few students from disadvantaged backgrounds attend the most selective universities is a barrier to social mobility.

“But that being said, 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.”

The research, based on detailed government data, found that five years after graduation, annual pretax earnings for both women and men who obtained a lower second-class degree in 2013 were about £3,800 lower than for those who received an upper second-class degree.

The study also found that the rewards for higher degree classes vary “hugely” depending on subject.

Jack Britton, associate director of the IFS and 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.”

For men and women studying law or economics, getting a 2.2 rather than a 2.1 was associated with 15% lower earnings or worse, while there was “no significant difference” in pay between degree classes for those who majored in education or English.

But achieving at least a 2.1 led to much higher average pay for graduates of more selective universities.

Men and women who gained a 2.2 from the most selective universities – Oxford, Cambridge, Imperial College London and the London School of Economics – earned 20% less on average by the age of 30 than those who achieved a 2.1. At the least selective universities, a 2.2 degree led to about 6% lower pay for women and 8% for men.

The IFS also noted “stark gender differences” in the rewards between men and women achieving first-class degrees at very selective universities. The increase for a first-class degree versus a 2.1 was almost nothing for women but about 14% for men.

“This suggests that fewer high-achieving women go on to high-earning careers,” the IFS said.

Waltmann said the graduate gender pay gap was largely explained by subject choice. But even for those who graduated in the same subjects, it was clear that a pay gap had emerged by the age of 30 that was only partly explained by women leaving the labour market to have children.

“Children are a key explanation but they are not the only thing going on here,” Waltmann said.
Newsletter

Related Articles

0:00
0:00
Close
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
×