Gender pay gap is driving more women to do postgraduate degrees, study finds

The gender pay gap is driving more women to do postgraduate degrees, a study has found.

The boost in earnings from a postgraduate degree is more substantial for women than it is for their male peers, according to a report published by the Higher Education Policy Institute (Hepi).

The report analysed how postgraduate education in the UK changed in the decade after the 2007-8 financial crash. 

Over the past ten years, there has been an increase in the number of women taking Masters degrees, while the number of men has "flatlined". 

“Male underachievement at school level is among the likely drivers of the latter, since males and females with equal GCSE qualifications progress to higher education at similar rates," the report said. 

“At the same time, the substantial wage gap between men and women with the same qualifications may also be driving rising female participation, creating stronger incentives for women to invest in higher levels of education.”

Male graduates earn six per cent more than their peers who did not go to university by the age of 29 after one degree, the report says, compared to 26 per cent for female graduates.

However, the median salary for female postgraduates is 28 per cent higher than for female undergraduates, while for males it is just 12 per cent higher.

“These disparities mean the economic case for investing in higher levels of education rather than going straight into the workplace is markedly stronger for women than men,” the report said.

Despite women getting a boost in their earnings if they take a postgraduate degree, they still earn 14 per cent less on average than men with the same level of qualifications.

Overall, white men from disadvantaged backgrounds are less likely to take postgraduate degrees. The report also warned some postgraduate courses could become "unviable" if international student numbers fall as institutions are reliant on their higher tuition fees.