Is there Still a Graduate Premium?: The Earnings Expectations of English Business School Students

This paper reports on the findings of a study comparing the earnings expectations of first year and final year
students in business studies in England between 2011 and 2014. Students’ expectations were evaluated under two
scenarios – immediately after graduation and 10 years later. No change in expectations was observed following the
trebling of tuition fees in 2012. Several personal characteristics (including gender, age, ethnicity and socioeconomic
background) explain some of the variance in earnings expectations. Students who undertook a sandwich
work placement and those who expected to obtain first class honours degrees had higher salary expectations. On
the other hand, planned postgraduate studies and casual work experience did not have an effect on students’
expectations.