This report looks at the post-study earnings of those who borrowed through the Student Loan Scheme. It looks at the earnings of people three years after they left study. The analysis provides new information on the extent of change in the earnings of graduates who studied at different qualification levels.
Key Results
- The most important factors which significantly influenced earnings were industry of employment, qualification level, field of study and the tertiary education provider type.
- The level of a person’s earnings was generally not as strongly related to demographic variables. Age group did show a relatively moderate relationship to post-study earnings. Earnings increased with the age up to the age of 50 years. When age and qualification level were looked at in combination, there was also an effect on earnings.
- The interaction of variables such as qualification level with industry, qualification level with provider, field of study with industry and age-group with qualification level, had a greater influence on graduate earnings than when these factors were considered individually.
- People with a qualification below degree level earned about 20 percent lower than those with a bachelors degree. People with a post-graduate qualification earned about 60 percent more than those with only a bachelors degree (keeping all other factors constant).
- For any given level of study, students who complete a qualification earn more than those that don't complete. However, when considered independently of level of study, the premium for completing a qualification is only marginal.
- Students who studied in the fields of Health, Engineering, Management and Commerce and Education were likely to earn more than students studying in other fields, when adjusted for other relevant factors.
- People holding post-graduate qualifications in Management and Commerce or Health were likely to have the highest earnings, after taking other factors into account.
- Among bachelors degree holders, studies in Engineering and related technology studies, Health and Education resulted in higher predicted earnings. Individuals holding qualifications below degree level in the fields of Engineering and related technology, Health and Education also were likely to earn higher incomes relative to other fields of study at the same level.
- Among industries of employment, Engineering, Mining, Telecommunication services, Finance and Insurance, Property and Business Services and Health and Community services, provides higher returns to tertiary study.
- Although Engineering, Mining and Telecommunication services provided the highest returns to tertiary qualifications, the number of people in these two industries is very small.
- Individuals attaining qualifications in industry-specific fields such as Education, Health, Management and Commerce, Agriculture, Engineering etc. were very likely to be employed in industries that match their fields of study.