Publications in: Economics of Education

Settling the Counterfactual Debate: Is There a Preferable Counterfactual when Estimating the Returns to Vocational Qualifications? – April 2018

Subsector:Labour market economics
Published: 11 April, 2018
Document type:Report

Using information from the Longitudinal Education Outcomes (LEO) data set, it is now possible to compare the characteristics and estimates for learners with different qualifications encompassing both types of counterfactuals used in the extant literature: learners in possession of qualifications at the ‘level-below’ and learners enrolling in similar vocational qualifications but failing to achieve (‘non-achievers’). […]

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The Costs of Amending Student Support Arrangements – February 2018

Subsector:Labour market economics
Published: 13 February, 2018
Document type:LE publication

With the potential review of higher education approaching, London Economics have modelled the costs to the Exchequer associated with a reduction in tuition fees to £6,000 and the re-introduction of maintenance grants. The analysis demonstrates that the cost of cutting fees stands at £1.169 billion per cohort, while maintenance grants cost £360 million. Importantly, despite […]

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The Costs and Benefits of International Students by Parliamentary Constituency – January 2018

Subsector:Labour market economics
Published: 11 January, 2018
Document type:Report

Given the continuing political debate about the inclusion of international students in UK migration targets, and the limited number of analyses of their net economic impact to date, London Economics were commissioned by the Higher Education Policy Institute (HEPI) and Kaplan International Pathways to undertake a detailed analysis of both the benefits and costs to […]

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Estimating the Costs Associated with the Student Support Offer – December 2017

Subsector:Education
Published: 13 December, 2017
Document type:LE publication

London Economics’ modelling estimates that the recent decision of the government to raise the repayment threshold on student loan repayments to £25,000, alongside an increase in the interest rate thresholds will cost approximately £2.85 billion a cohort. Breaking down this estimate, the additional Exchequer expenditure includes £1.09 billion in costs associated with the lower level […]

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An Economic Assessment of Skill Gaps on Firm Productivity – November 2017

Subsector:Labour market economics
Published: 27 November, 2017
Document type:Presentation

London Economics has undertaken research for Filtered, an online training platform, providing comprehensive insight into employer demand for skills driven by skills gaps. Using the 2015 wave of the Employer Skills Survey (ESS), we found that skills gaps have a significant effect on a number of business outcomes, including losing business to competitors, delaying development, […]

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The Payoff to Vocational Qualifications: Reconciling Estimates from Survey and Administrative Data – December 2017

Subsector:Labour market economics
Published: November, 2017
Document type:Report

Estimating the wage differentials associated with particular qualifications has increasingly become part of the general ‘returns to education’ literature. Two particular strands of the literature looking at such qualifications can be identified: the first uses data on individuals obtained through representative sample surveys, such as the Labour Force Survey (LFS) in the UK, while the […]

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The Economic Impact of Russell Group Universities – November 2017

Subsector:Labour market economics
Published: 02 November, 2017
Document type:Report

London Economics were commissioned by the Russell Group to undertake an analysis of the economic contribution of their 24 members universities to the UK economy in 2015-16. The analysis estimated the impact associated with Teaching and Learning activity (here), world-class research (here), educational exports (here) and the direct, indirect and induced impact associated with the […]

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Reforming Student Finance to Increase Fairness and Widen Access – November 2017

Subsector:Labour market economics
Published: 16 November, 2017
Document type:Report

London Economics was commissioned by the Sutton Trust to analyse the cost to graduates, higher education institutions and the Exchequer associated with a range of student support scenarios, including combinations of: means-tested tuition fees based on household income; the re-introduction of maintenance grants to 2015/16 levels before their abolition; and changes to the interest rates […]

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The Journey from Childhood Skills to Adult Financial Capability – Analysis of the 1970 British Cohort Study – November 2017

Subsector:Education
Published: 20 November, 2017
Document type:Report

The Money Advice Service believes childhood and adolescence are vital times to influence future financial capability and that what happens in these years can have profound effects on financial outcomes. Too little is known about the factors in childhood and adolescence that contribute to long term financial outcomes. This research aims to contribute to filling […]

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Peer Effects and Social Influence in Post-16 Educational Choice – November 2017

Subsector:Labour market economics
Published: 20 November, 2017
Document type:Report

Following the increase in the education participation age, individuals are now required to study towards either a vocational or academic qualification until their 18th birthday once they have completed their GCSEs. However, there is currently relatively little understanding of the factors which determine which route learners choose to follow. Attainment in secondary school is clearly […]

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