The full returns to higher education in the UK

David Frayman

CEP Occasional Papers from Centre for Economic Performance, LSE

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.

Keywords: Wellbeing; education; university; value for money (search for similar items in EconPapers)
Date: 2025-07-10
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepops:71

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