Measuring the relationship between resources and outcomes in higher education in the UK

This paper relates educational resources in higher education (HE) to labour market earnings for UK graduates. A positive relationship between (various types of) resources deployed and earnings is tested for, using data on UK graduates. Although basic correlations show a positive relationship between per unit resources and student-staff ratios with subsequent earnings, thes e correlations are significantly reduced when other controlling factors are included. The magnitude of any improvement in earnings from an increase in resources deployed in HE is estimated. The elasticity of earnings with res pect to resources is also estimated. (C) 2001 Elsevier Science Ltd. All rig hts reserved.