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The Full Returns to Higher Education in the UK. Occasional Paper No. 71

Title: The Full Returns to Higher Education in the UK. Occasional Paper No. 71
Language: English
Authors: David Frayman; London School of Economics and Political Science (United Kingdom), Centre for Economic Performance (CEP)
Source: Centre for Economic Performance. 2025.
Availability: Centre for Economic Performance. London School of Economics and Political Science, Houghton Street, London, WC2A 2AE, UK. Tel: +44-20-7955-7673; Fax: +44-20-7404-0612; e-mail: cep.info@lse.ac.uk; Web site: http://cep.lse.ac.uk
Peer Reviewed: N
Page Count: 8
Publication Date: 2025
Document Type: Reports - Descriptive
Education Level: Higher Education; Postsecondary Education
Descriptors: Outcomes of Education; Higher Education; Costs; Educational Benefits; Foreign Countries; Salaries; Well Being; Income; Evidence; Educational Attainment; Loan Repayment; Grants; College Attendance
Geographic Terms: United Kingdom
Abstract: University education is known to generate significant earnings returns, but its full value may be understated without considering its wider effects on individual wellbeing. This paper estimates the complete lifetime return to higher education in the UK by combining income effects with monetised wellbeing effects. Building on recent evidence, we estimate the full discounted lifetime benefit of attending university is £146,000 on average, with approximately one quarter of this arising from non-pecuniary gains. For students at the margin of enrolment, returns remain substantial at £78,000. These benefits are achieved at no long-run fiscal cost to the government.
Abstractor: As Provided
Entry Date: 2025
Accession Number: ED674572
Database: ERIC