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We use British birth cohort panel data to examine the impact that degree level qualifications and other higher education qualifications have on the earnings of individuals in the medium to longer term. We compare the outcomes of these individuals with those of individuals who had the prospect of undertaking Higher Education but chose not to. Our approach involves ‘matching’ these individuals according to observed characteristics which we have in the data such as ability, family background and demographics and then comparing outcomes between individuals who proved to HE and otherwise identical individuals who had the opportunity but did not.
Blundell et al. (Tue,) studied this question.