Postgraduate Education Equals More Pay - Report
29 October 2012 at 9:41 am
Australians with postgraduate degrees will earn almost double in their working lives than their less educated counterparts, according to a new report.
The latest AMP.NATSEM report reveals that those with postgraduate degrees will earn $3.2 million compared to workers with Year 11 or less earning only $1.7 million.
However women in the workplace are still facing wages inequality with woman with the report finding that a 25-year-old woman with a postgraduate degree can expect to earn just two thirds of her male counterpart’s lifetime earnings – $2.5 million compared to $3.2 million.
The report, which explores education and innovation in Australia, also found that there has been a “massive” generational shift in educational attainment in Australia, with 77% of students now completing Year 12, up from 45 per cent in 1984.
It also found that more than 44% of 25-34 year olds have completed tertiary studies, compared to just 30% of 55-64 year olds.
AMP Financial Services managing director Craig Meller said it has never been clearer that gaining an education pays off in future earnings.
“The report shows a person with a Bachelor Degree will also receive a high return on education, earning almost 1.7 times someone with Year 11 or below,” Meller said.
“Australians are willing to go the extra mile to make sure their children receive the best possible education.
“A well-resourced education system and a culture of innovation are crucial components of Australia’s enviable lifestyle and investing in both will help ensure our nation is a truly lucky country.”
The report found that while educational standards have been increasing, education is not yet for all with only 15% of all university students coming from low socio-economic backgrounds, short of the Federal Government’s target of 20%.
The lead author of the report Rebecca Cassells said Australians are efficient educators, spending just below the OECD average on education but ranking high in international standards.
Cassells says this raises the question, how might Australia fare with further spending on education?
“Australia’s educational achievements are impressive but there are gaps to be narrowed around access to education and differences in educational achievement across the states,” Cassells said.
“Women are also losing out with considerably lower lifetime earnings than men, partly due to lifestyle factors, such as taking time out of the workforce to raise children, but gender inequality is still a big factor in the equation.”