Varsity blues: time for apprenticeships to graduate?: a comparison of the earnings, employment, productivity and taxpayer returns of graduates to those of apprentices

Youth unemployment is a significant challenge facing policymakers. Unemployment takes a heavy toll; it not only harms lives, but also has considerable economic and financial implications for governments and society at large. For young people finishing school their next steps will have a substantial bearing on the rest of their lives. For those looking to continue their learning, there are a number of options available, including university, an apprenticeship or college. It is vital that young people make an informed choice based on accurate information. Despite this, the Government has yet to commission an analysis to compare directly the merits and weaknesses of the full range of options available to school leavers. Using data sets from the Labour Force Survey (LFS), British Household Panel Survey (BHPS) and Unistats, [the authors] have compared two of these options: apprenticeships and university degrees. The purpose of [the] analysis is to determine the relative benefit these routes offer to young people, employers and taxpayers. [The] analysis concludes that, contrary to public perception, apprenticeships offer more favourable returns, both to the taxpayer and to school leavers, relative to a significant proportion of university graduates. [The authors] also find that both subject studied and university attended have a considerable bearing on lifetime earnings and net returns to the Exchequer.

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