New Zealand tertiary graduates are not paid much more than their less qualified colleagues, an international report shows.
While New Zealanders with diplomas and degrees still earn more, on average, than those without, their margin over their less qualified colleagues is "very low", the Organisation for Economic Co-operation and Development's 2008 Education at a Glance report says.
The report, which analysed 2006 salaries, calculated the average earning margin in this country at 15% - well behind Australia at 30%, the United Kingdom at almost 60% and the United States at 77%.
The earning margin for men was the lowest of the 30 OECD countries, while the margin for women was the fifth lowest.
However, views differ on whether graduates are seriously disadvantaged by low margins.
Paul Falloon, co-president of the New Zealand University Students Association, called the figures "alarming", saying the combination of low margins and the comparatively high cost of attending a New Zealand tertiary institution was already resulting in some students dropping out to take jobs.
"The whole premise of user-pays education is supposedly the economic benefit to the student of a better salary at the end of their studies . . . This report shows that economic benefit may not be great."
Steve Thompson, Dunedin-based office managing partner with the professional services consultancy firm Deloitte, said he did not believe earning margins were relevant because tertiary qualifications were the "price of admission" to better-paying positions.
However, there was no evidence of education premiums being paid for people in the same jobs, he said.
In "degree optional" positions, there was anecdotal evidence experience was often more important than qualifications.
Employers expected qualifications to an appropriate level but did not pay a salary premium "because they did not have to", Otago Polytechnic chief executive Phil Ker said.
Otago-Southland Employers Association chief executive Duncan Simpson agreed, saying salaries were connected to supply and demand.
Well-qualified job seekers were available here and employers did not need to pay a premium.
