Economic impact assessment of the CCPMO: Final report - CIPD

More documents

Recommendations

Info

Section 4 The economic return to professional qualifications We can use these results to estimate the earnings associated with different qualifications across an individual’s career. To ensure that the analysis adheres to best practice (as laid out in HM Treasury Green Book) it is necessary to factor in real earnings growth to account for the fact that, as the economy evolves and workers (at all qualification levels) become more productive, it would be expected that real earnings will increase. In other words, we would expect a 25 year old in 20 years time to achieve higher real earnings than a 45 year old now. We therefore augment earnings by 2% per annum. The results are displayed in Figure 9. This indicates that professional qualifications and membership of a professional institute provide individuals with significant returns in terms of higher wages, even when other personal characteristics are controlled for. Importantly, when considering these results, it should be noted that this refers only to the estimated wages that individuals would earn if they were employed, rather than the average across the entire working-age population (i.e. incorporating individuals that are unemployed or economically inactive). This is considered further overleaf. London Economics December 2008 30
Section 4 The economic return to professional qualifications Figure 9: Projected age-earnings profiles based on qualification attainment Male proje cted a ge -earnings profile £80,000 £70,000 £60,000 £50,000 £40,000 £30,000 £20,000 £10,000 £0 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Age No qualifications A -level Degree-level Professional qualifications Membership of a prof.institute Female proje cted a ge -earnings profile £40,000 £35,000 £30,000 £25,000 £20,000 £15,000 £10,000 £5,000 £0 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Age No qualifications A -level Degree-level Professional qualifications Membership of a prof.institute Note: Assuming 2% growth in real earnings per annum. Qualifications are indicative of the level within the NQF (i.e. A-level represents all level 3 qualifications). All individuals with qualifications are assumed to hold level 2 qualifications. For illustration purposes, qualifications are cumulative – that is an individual with membership of a professional institute is assumed to hold qualifications at GCSE-level, A-level, degree-level and professional qualifications. Source: London Economics based on Labour Force Survey. London Economics December 2008 31
Page 1 and 2: An Economic Impact Assessment of th
Page 3 and 4: ViÃÊiÌÊÀiViÌÞÊ>ÌÊÌiÊ7>
Page 5 and 6: Contents Page 6 References 38 Annex
Page 7 and 8: Foreword Foreword In recent years t
Page 9 and 10: Executive Summary Executive Summary
Page 11 and 12: Executive Summary Training Professi
Page 13 and 14: Executive Summary The skills provid
Page 15 and 16: Section 1 Introduction and backgrou
Page 17 and 18: Section 2 Overview of the CCPMO 2 O
Page 19 and 20: Section 2 Overview of the CCPMO 2.3
Page 21 and 22: Section 2 Overview of the CCPMO Fig
Page 23 and 24: Section 2 Overview of the CCPMO 20%
Page 25 and 26: Section 2 Overview of the CCPMO 2.4
Page 27 and 28: Section 3 The contribution of the C
Page 35 and 36: Section 4 The economic return to pr
Page 43: Section 4 The economic return to pr
Page 51 and 52: Section 5 Concluding remarks from t
Page 53 and 54: Section 6 References Sector Skills
Page 55 and 56: Annex 1 The Skills Strategy employe
Page 57 and 58: Annex 1 The Skills Strategy issues
Page 59 and 60: Annex 1 The Skills Strategy have ac
Page 61 and 62: Annex 1 The Skills Strategy access
Page 63 and 64: The Members of the CCPMO The Member
Page 65 and 66: The Members of the CCPMO The Instit
Page 67: 11-15 Betterton Street London WC2H

Economic impact assessment of the CCPMO: Final report - CIPD

Create successful ePaper yourself

Delete template?

Save as template?