I ought to clarify something, in light of my comment on @rcolvile's thread

The report from which the charts are taken do say "no causal proof". But there's another IFS paper that *does* try to get at a causal relationship, which @CPSThinkTank link to ifs.org.uk/uploads/R167-T… 1/
This @TheIFS paper diligently controls for background etc in order to try to isolate the effect of the decision to go to university itself. See, for example, these charts - the RHS one shows *net of student loans* men on average in two courses earning less than non HE 2/
So I would like to absolve CPS of any charge of misrepresenting what the IFS did.

I still think we have to be careful with these findings, as the IFS researchers say themselves. In particular, it is impossible to create the perfect control group ...4/
For people determined to go into certain low-paying professions, the course may be an incidental event on the journey. Doing the course doesn't make them go off and earn less. And, finally...5/
it is quite possible there are a class of professions like social care that both a. benefit from HE level education and b. do not generate lifetime salaries that repay the fee. That does not make them bad courses, or wrong choices. 6/6

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More from @Gilesyb

9 Nov
Something you learn when you step a little outside narcissistic government world: how businesses performs R&D is often little to do with the Government/universities. Mostly, it is about their competitors, their customers, their employees... Universities come 15th! 1/
This is important because the UK Government has a key target - to raise UK R&D spending to 2.4% of GDP in a few years' time (current level, 1.8-1.9%). Two thirds of that is normally *private* money. HMG's major tool is to pump in more public £££... gov.uk/government/new…
What UK public sector R&D does, and the business sector researches, is likely to be very different. And hence its low position in these rankings. But this is not necessarily a failing of policy 3/
Read 5 tweets
8 Nov
An interesting thread, but it is based on @TheIFS work, and what they *explicitly don't* say is that taking a particular course has a CAUSAL effect of making you poorer. *This* is the work you should read ... and what it says: 1/
ifs.org.uk/uploads/public…
I am sure the CPS means to be careful. But different courses *select different types*. Unless you track what the same type of person would do taking different choices, you cannot say "taking this course HAD THIS IMPACT" (as this tweet appears to) . 2/
Saying "you are worse off *for going to university*" implies a causal consequence. And to reiterate, what IFS says is that they are estimating the distribution of govt spending by course, and this" is not intended to be a valuation of the merits of different courses" 3/
Read 8 tweets
27 Oct
I don't know why this makes me so grumpy. But, on the basis of this very humdrum story, I cannot see anything in this "leveling up" agenda that does not simply come down to "partially restore state spending to make up for how it was cut from 2010"... 1/ on.ft.com/3BmRiS2
The test I constantly apply is "what do we have that Gordon Brown didn't have in 2007" and there is nothing I can think of, save a change in colours. Yet the story is written as if "regenerating places and trying to find new private sector activities" was invented in 2019 2/
We knew high streets were becoming rubbish in 2011. Pork barrel bidding for private sector ideas began in 2010 with the Regional Growth Fund. Actually, it began way earlier with European Regional Development Funds, but let's pretend that EU bureaucracy rendered it useless 3/
Read 8 tweets
20 Sep
Thinking aloud: so this story talks of the cost of a support package running to "several billion pounds", and with that much taxpayer money on the line, the political question will be: to whose benefit is this going? A variety of answers: 1/

ft.com/content/684e4e…
The most acceptable (though maybe not to economists) would be: the taxpayer £ in effect shields vulnerable energy consumers from facing the full cost of energy for a while, indirectly. Paying companies to price at a loss while the spike persists 2/
The least acceptable: funds bail out equity investors who gambled unsuccessful on a strategy that involved harvesting consumers with low apparent prices, taking a risk that wholesale prices don't rise, going bust if it fails, pocketing the profit if it succeeds. Unlikely! 3/
Read 5 tweets
13 Sep
This @tonydanker speech to the @CBItweets conference is quite hard-hitting.

Long section shaming the amount of investment the UK government appears to be content with. Absolutely flays a business rates system that he says punishes such investment
Like everyone in the past 5 years, he calls on the Apprenticeship Levy to be reformed. People get the principle, but the delivery needs to be changed
Danker is unflinching in his criticism of the delivery of infrastructure projects. Key example is the delay to nuclear financing. And shipping: "We could leave the world in zero-carbon shipping".
Read 6 tweets
13 Sep
Am curious about "Street Votes", which seems like a nice little policy.

What is the theory behind the idea that it might be amazing for *growth*? I hope it is not "more construction activity" ... is it through allocation? More people able to live in more productive places? 1/
Suppose the policy knocked the lights out and delivered 100,000 more dwelling places in 5 years in highly productive urban locations.

Then that allowed the people affected to earn 20% more, call it £6000.

That's a one-off rise of £600m in GVA. Nice ... but 0.03% of GDP 2/
As for construction activity, 20,000 more dwelling places/year, finger in the air, that's £1bn of GVA. Sounds a lot - but with construction facing supply capacity limits, I am not sure extra demand here = growth. May be wrong? But it's also one-off 3/
Read 4 tweets

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