Rising costs of living and tuition, along with concerns about graduate oversupply, have made the
trade-offs between further study and early entry into the labour market increasingly important. At the same time, substantial increases in the UK National Living Wage raise questions about how wage policies shape these choices. While previous research has estimated returns to both education and labour- market experience, these findings deserve a careful re-examination in the UK context.
Using the UK Longitudinal Education Outcomes dataset, this project estimates and directly compares the wage returns to completed education credentials and labour-market experience. This allows postgraduate study to be evaluated as an investment choice relative to early labour-market entry. The analysis also examines variation in returns by gender, field of study, and university group to assess the extent of unequal outcomes across education pathways. By offering clear, comparable estimates of education and experience returns, the study supports more informed education and career decisions, particularly where higher education entails substantial financial risk.
Furthermore, the project examines how minimum wage shifts influence the relative returns to
education and experience. It remains an open question whether higher wage floors compress wage differentials, thereby reducing education premia, or conversely enhance the value of qualifications through heightened labour-market competition. This study seeks to investigate these mechanisms and assess whether their distributional effects have evolved in the post-COVID-19 landscape. Ultimately, the research aims to provide a foundation for evidence-based policymaking on education, skills, and wage regulation to foster inclusive economic growth in the UK.