Uni education pays off in the long run

24 Oct 2012, 7:23 am   -   Source: AAP

University education really does pay off, with a report showing a postgraduate will earn almost double that of a worker without a postgraduate degree.

Your parents were right - getting a university education really will give you a good start in life, and probably help keep you in well-paid work.

According to the latest AMP.NATSEM report, Australians with postgraduate degrees will earn almost double, or $3.2 million over their working lives, that of people with a Year 11 or lower qualification, who can expect to earn around $1.7 million.

However, women still face earnings inequality, with the report finding that a 25-year-old woman with a postgraduate degree can expect to earn just two thirds, or $2.5 million, of her male counterpart's lifetime earnings.

The report, which explores education and innovation in Australia, found there has been a massive generational shift in educational attainment in Australia, with 77 per cent of students now completing Year 12, up from 45 per cent in 1984.

More than 44 per cent of 25-34 year-olds have achieved a tertiary education, compared to just 30 per cent 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.

He 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," Mr Meller said.

The report found that tertiary education is not evenly shared around with only 15 per cent of all university students coming from low socio-economic backgrounds which is five per cent short of the federal government's target of 20 per cent.

The report also showed that new arrivals to Australia are boosting education levels, with 46 per cent of 25-34 year-old migrants holding a bachelor degree or above, compared to 20 per cent of people born in Australia.

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