How strongly does the presence of a diploma of education affect the level of salary?

The rapid development of higher education influences the formation of high salaries of graduates. However, according to data cited by the Bank of England , the value of a degree has declined sharply over the past 20 years.

Threadneedle Street stated that job seekers who graduate from university can expect a higher level of income in their career than those who do not have a college degree. But beyond that, there is evidence that wage increases were cut from 45% to 34% between 1995 and 2015.

The Bank of England noted that this situation is due to the fact that the requirements for graduates do not correspond to the real situation on the labor market. Currently, one in three workers holds a scientific degree, whereas in 1985 only 1 in 10 could qualify as a highly skilled worker.Another feature is that the increase in the number of students in universities has led to the emergence of difficulties in the selection of truly talented personnel in a short period of time.It is for this reason that the salary increments to the A-level and GCSE graduates have been reduced, albeit not to a significant extent, and the seniority awards have also decreased.

A survey conducted by the Royal Institute of Management found that most parents today are seeking to encourage their children to choose an educational program that will allow students with honors to work with an accredited employer, at the same timereceiving a salary and at the same time not paying duties. The Bank of England's data on postgraduate earnings of graduates was presented by its head in a quarterly newsletter, which also explained the reasons for the slow growth of wages.

According to the statistics provided by the Bank, despite the abolition of bonuses for yesterday's graduates, there has been an increase in the number of applicants for a qualified position lately. A higher level of education can increase the salary of university graduates by an average of 0.4% per year.However, the so-called "compositional effects" worked inthe opposite direction in both 2014 and 2015, due to low-skilled workers returning to the labor market. This slowed wage growth by about 0.75% and helped explain why wage growth is only 2%.“The latest data for 2015 shows that the 'compositional effects' have started to diminish. Probably, the hindrances slowing down the growth of wages will disappear as soon as the labor market stabilizes and the “compositional effects” return to normal indicators, ”the Bank representative assured.