Family background, subject choice and university have a significant impact on English students' earnings five years after graduation, new data shows. Figures compiled by the Institute for Fiscal Studies (IFS) show economics and medicine students earn about 60% more than history and English graduates.
Those from the highest social groups have an 8% premium on earnings, while every A at A-level adds about 3%. The data controls for socio-economic background and prior attainment.
The IFS examined the school and university exam records of graduates from England attending UK universities, alongside their tax returns. It found that, typically, graduates of physics and maths had higher earnings than those who studied subjects such as psychology and sociology.
Those who studied creative arts, social care and media earned the least, about £20,000 five years after graduation.
The report says that while some of the differences in earnings can be explained by differences in prior attainment and background characteristics of students, significant gaps still emerge.
The IFS found that some subjects, such as computing and business, where average earnings were not especially high, actually added a lot to salaries once background and A-level grades were taken into account.
