It is widely accepted that an accurate assessment of the extent to which graduates benefit from higher education is crucial for the effective development of policy in this area. For the first time in the UK, this report examines two dimensions of labour market success (employment and wages) in the early 1990s for a group of 33-year-olds who undertook higher education and compares their performance with a similarly-aged group who obtained at least one (and alternatively at least two) A level qualifications but did not proceed into higher education.