The value of degrees in times of economic and social change
Vanessa Wainwright
2030 Skills Mission to democratise access for 100 million people to learning and inclusive opportunities through the Skills Passport
The narrative around the value of degrees, in particular Master degrees, has become quite controversial in the past few years. The debate revolves around few main considerations:
What is the value of education?
According to prominent philosophers, like John Dewey, and to numerous students embarking in their degrees, education is a good in itself, holding intrinsic value to individuals and societies, in terms of personal growth and fulfillment, but also moral and civic development and cultural enrichment. While this might apply to earlier stages of education, and also students at the beginning of their undergraduate studies, it certainly applies less to postgraduate degrees, which are mainly judged by their return on investment and market utility. Research carried out among undergraduates in their second and third year of studies, highlighted that the most frequent reason for completing a degree was “career/ money”. This is even more significant when considering Master degrees , which are undertaken by individuals in order to increase their chances to get a specific job or progress in their career, setting them apart from competitors who hold a bachelor's degree.
But is that the case still?
A recent article in the Economist highlights how economic returns to a Master's degree in the UK are not as convenient as one would think when investing in it. A recent research conducted by the Institute of fiscal studies, found that by age 35, master's graduates earn no more than those with just a bachelor's degree. The biggest variable here is, as we can expect, the subject studied, with the largest returns being within computer science, engineering, technology and mathematics subjects (which in general are already quite high for individuals holding a bachelor's degree). Subjects like politics and history, on the other hand, show negative returns of 10-20%., hitting-rates of 30% for English. The choice of these fields of studies is certainly driven by passion, especially for people who then progresses to Phds to pursue academic careers; but also, a lot of these individuals are still undecided about the profession to pursue and choose more general studies, especially at undergraduate level in order to get a more rounded education and specialize later on, falling behind in the earning trend compared to their cohort.
Do degrees prepare students to perform specific job roles straight out of university?
The answer is neither easy nor one fits all. If we leave out the professions, such as medical doctors, law practitioners, etc, who need years of specialisation and additional practice in order to perform these jobs; the average student completing a degree is considered by the industries as someone with the potential and ability to achieve goals, learn and be trained to perform different job roles. This is certainly the case for consultancy firms, who offer graduate schemes as the first step of a career ladder, from where only a percentage of recruits will progress. This is what social scientists also refer to as signaling theory, which explains how degrees act as a signal to employers. A degree is not about knowledge and skills per se but an indicator of certain qualities, such as trainability, perseverance, discipline and intellectual capability. What this theory also acknowledges is that degrees not always correlate with job specific skills, and this is one of the issues the ever evolving job market is experiencing today: from inefficiencies in the hiring process, to credential inflation (where degrees might not be required for some jobs), to inequality of opportunities, where the high cost of education (especially in some countries), create barriers for some individuals, meaning degrees may not always reflect the most capable candidates, but rather those with the resources to pursue HE.
The rise of vocational education and micro credentials
As more people obtain degrees, the value of the signal decreases. One example of this is the fact that a bachelor's degree no longer stands out, leading more and more people to get master's degrees and/or additional credentials.
In the fast evolving economy we currently live in, employers are starting to value alternative educational pathways, like apprenticeships and micro credentials , whose purpose is skills building. Some degrees might not be seen as directly contributing to economic productivity and advancement, which gave way to a significant and growing investment by government and industries on apprenticeship schemes, including degree apprenticeships. They combine on the job training with classroom based learning aimed at developing practical skills and theoretical knowledge in a specific profession, what we refer to as "real-word experience" and qualifications. Microcredentials have also become recognised in fields like technology and business, targeting upskilling and reskilling for career advancement. They also promote lifelong learning, and are widely accessible from online providers.
Key Takeaways
By Dr. Elisa Forestan-Barnes
Head of Education and Skills UK, abodoo
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