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Type: Observations Authors: Haroon Chowdry, Alissa Goodman and Alastair Muriel
The Public Accounts Committee published a report on widening participation in higher education last week, which highlights the big gap in university participation between young people from rich and poor backgrounds. The aim of the report is largely to question whether the £392 million of public money given to universities for widening participation over the past six years has been used wisely. IFS' recent work on participation in higher education (HE) gives a strong indication of what sorts of spending might work and what won't. It shows plainly that outreach activities aimed primarily at A-level students cannot fix the problem - by the time poor children have reached 16, it's already too late for many. Their low attainment has already drastically reduced their chance of a university place. Our research used newly linked administrative datasets following every state school student from one particular cohort through the school system, from age 11 to age 19, allowing us to observe the entire history of academic achievement and any resulting HE participation. It found, for example, that only 12.7% of boys from the most deprived fifth of households attend HE at age 18 or 19, compared to 41.7% of boys from the most affluent fifth - a gap of 29 percentage points. The gap between the richest and poorest girls is even bigger, at 34.6 percentage points. However, we found that this 'socio-economic gap' in HE participation does not emerge at the point of entry into higher education. Instead it comes about because poorer pupils do not achieve as highly in secondary school as their more advantaged counterparts. In fact, the socio-economic gap that remains after controlling for prior attainment (that is, comparing individuals with similar records of academic achievement) is tiny, at just 1.0 percentage points for males and 2.1 percentage points for females. The implication is that focusing policy interventions on disadvantaged pupils who are already in post-compulsory education is unlikely to have a serious impact on the socio-economic gap in HE participation. This is not to say that universities should not carry out outreach work to such students, but simply that it will not tackle the much larger problem, namely the underachievement of disadvantaged pupils in secondary school. Participation in HE will also be one of the topics for debate at the 2009 IFS Residential Conference, to be held in Cambridge on 2-3 April. Numerous experts in the field - including Lorraine Dearden, one of the authors of the IFS research - will bring together the latest evidence on widening participation, in both a UK and international context.
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Recent Observations
Cutting the deficit: three years down, five to go?
The UK is in the fourth year of a planned eight-year fiscal tightening. Following further announcements made in Budget 2013, this fiscal consolidation is now forecast to total £143 billion by 2017–18. The UK is intending the fourth largest fiscal consolidation among the 29 advanced economies for which comparable data are available. By the end of this financial year, half of the total consolidation is expected to have been implemented. However, within this tax increases and cuts to investment spending have been relatively front-loaded, while cuts to welfare spending and other non-investment spending have been relatively back-loaded.
Deficit unchanged
The March Budget forecast that borrowing would fall by £0.1 billion from £121.0 billion in 2011–12 to £120.9 billion in 2012–13. On Tuesday, the Office for National Statistics is due to release its first estimate of public sector net borrowing in March 2013 and, therefore, for the whole of 2012–13. Borrowing could easily end up being higher or lower than it was in the previous year, either due to backwards revisions, the uncertainty inherent in forecasting borrowing even a month in advance, or both. However, whether borrowing is slightly up or down in cash terms is economically irrelevant. Either way, the bigger picture is that having fallen by roughly a quarter between 2009–10 and 2011–12, borrowing is forecast to be broadly constant through to 2013–14.
Women working in their sixties: why have employment rates been rising?
Employment rates through the recession have been remarkably robust, with today’s ONS figures showing employment remaining close to 30 million. The young have experienced historically low employment rates and high unemployment rates but the employment rate of women aged 60 to 64 has increased as fast since 2010 as it did during the 2000s. An important explanation is the gradual increase in the state pension age for women since 2010, which has led to more older women being in paid work. Without this policy change, the employment rate for 60 to 64 year women would have been broadly flat since 2010.
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