Back in 2006 in a parliamentary answer Bill Rammell, the Minister of State (Lifelong Learning, Further and Higher Education: Department for Education and Skills) said that the government ‘carefully...

Back in 2006 in a parliamentary answer Bill Rammell, the Minister of State (Lifelong Learning, Further and Higher Education: Department for Education and Skills) said that the government ‘carefully monitors the labour market for graduates, including the earnings premium’. He went on to say that the latest estimate was that the average premium remained well over £100,000 across the lifetime of a graduate (in today’s money) compared to a similar individual with 2_ A-levels.

You are required to try to find the latest best estimate for this graduate earnings premium. Explain why it is expected that this premium might fall in coming years.