One question people always tend to ask is; do graduates earn more than non-graduates? or is it the other way around?
The answer is – in some cases, yes graduates earn more due to having a degree than those who may not have graduated or received a degree in their chosen career field. However, this may not always be the case. There are people who do not have a degree that are earning a lot just due to them having the acquired experience.
The pay gap between graduates and non-graduates
So, the first question is, just how much more money does someone who has graduated earn than those who have not graduated?
Of course, those who decide not to go to university are most likely to go straight into the working world. This means that when it comes to bringing in a good monthly salary, there is a high chance that they will already have had somewhat of a head-start. However, once graduated the graduate can then find themselves a job that can and will pay more than the job roles that are open to those who are non-graduates. It is argued that the difference in yearly wages is as much as £12,000 per year and if you think about this over your working life (without pay-rises and inflation of course) then this could be as much as £500,000 over a working lifetime (which is a pretty impressive figure to keep in mind).
This is an average figure and the difference between earnings is hard to pinpoint exactly as localities differ in pay points and not every role is always the same. However, it is safe to say that if you do decide to put the time and effort into studying at university, then in the long-term, it will be worth the while for you.
Whilst the pay-out over a lifetime is greater if you go to university, one thing to remember is that it can sometimes be harder than what you think to secure a graduate job. There are many applicants applying for the same role for every graduate position that is available in the UK. The job market Is rather competitive, so you are really going to have to impress the employers if you want to secure your dream post-graduate role.
Why does this pay gap exist?
The next question that you might be asking yourself is, why does this pay gap exist? One of the main reasons is because those who have graduated are going to be able to secure themselves roles that are higher on the career ladder than those who have not studied at university. Not only that, but the reason why you should study at university is usually so that you can work along a career path that will pay more due to your experience and educational background. Both things can be contributing factors to higher earnings over a lifetime.
University is hard work and by the end of it, the truth is you are going to be in debt because of student loans, but we can promise you that after all the effort, it would be worth it when you get your dream graduate job.