“Kiss that graduate pay rise goodbye,” says the Times’s financial editor Patrick Hosking. He was commenting on a recent Bank of England report on the composition of the UK workforce which noted that, while the proportion of graduates has gone up over the last two decades, their pay premium has gone down.
The Bank comments:
There are a number of possible explanations which would be consistent with this finding. For example, if demand for highly skilled workers has not kept pace with an increase in supply, an increasing number of graduates would also lead to a decrease in the wage premium for those with degrees. Alternatively it is possible that the large increase in individuals studying for a degree in the United Kingdom has led to a fall in its signalling value (the ability of degrees to correctly identify more talented individuals) and thus the amount of pay which those…
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Utopia, you are standing in it! 
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