Kiwi degrees 'worth less'

Wage advantage over school leavers is slim

The value of gaining a New Zealand tertiary qualification is in question after the publication of a report comparing international education systems.

The Organisation for Economic Cooperation and Development's Education at a Glance report shows Kiwis with diploma-level qualifications or higher enjoy a "relatively slim" salary advantage over people who left school and went straight into jobs.

A tertiary qualification also has little bearing on someone's employment prospects in New Zealand.

The difference in employment rates between New Zealanders with and without degrees is among the lowest in the developed world.

However, universities are defending the worth of degrees.

The Education Ministry says the findings do not reflect low-quality tertiary education. They were instead linked to New Zealand's record-low unemployment rates. A strong employment market meant more people with lower skills were finding work.

A tradition of low earning disparities among Kiwi workers meant "employers pay a very low wage premium for tertiary qualifications".

The OECD report says New Zealand has a comparatively high proportion of tertiary graduates - 38 per cent, compared with an OECD average of 27 per cent. The Government has increased the university population by making students pay a larger share of study costs, it says.

A bachelor of arts degree costs a Victoria University student about $12,220 over three years.

New Zealand spent proportionally less per student than most other OECD countries.

After factoring in interest-free student loans, Kiwi students paid a fifth of their total tertiary education costs.

Victoria University vice-chancellor Pat Walsh said tertiary education gave students skills and knowledge to apply in a range of careers, creating new knowledge and economic benefits.

University graduates earned higher incomes, which grew for longer periods in their careers.

"They also have a lower rate of unemployment than students who have not completed tertiary education, and research also shows improved societal outcomes."

MAKING THE GRADE

* 38 per cent of the population have tertiary qualifications, compared to an OECD average of 27 per cent.

* Tertiary graduates enjoy a "relatively slim" earning advantage (15 to 25 per cent) over people who got jobs straight from school.

* The difference between employment rates for university graduates and people with few skills is the lowest in the OECD.

* One in four university students is foreign, compared to one in five in Australia.

* New Zealand spent 1.5 per cent of gdp on tertiary education in 2005, compared to an OECD average of 1.3 per cent.

- © Fairfax NZ News