Higher education key to bigger pay, Labor MP argues

Labor MP and economist Andrew Leigh has sought to counter research suggesting the economic boost from earning a university degree is declining, publishing an analytical paper that argues tertiary education drives higher earning capacity.

The economic return on earnings from a bachelor’s degree is about three times as large as the returns from a diploma, Dr Leigh’s paper says. A degree was associated with a 41 per cent increase in annual earnings over someone who has year 12 as their highest qualification.