In a new series of blogs, we will be reviewing the current and historical work of City-REDI.
In the latest blog, we examine a report written by Hannes Read, Alice Pugh, Rebecca Riley, and George Bramley, which can support a civic university in maximising the impact of its operations to make a difference in places and for people. PhD studies cover key components of university day-to-day operations, including teaching, research, and knowledge sharing.
Alongside funding from the National Civic Impact Accelerator and the Department for Science, Innovation and Technology (DSIT), City-REDI produced a rapid evidence review into the economic and social impacts of PhDs.
The economic impacts of PhDs are covered by five broad sections of impact on: wage premiums; employment; research and innovation; productivity; and firm competitiveness.
The social value of PhDs covers three broad areas of impact on: enhancing human capital; knowledge dissemination; and broader contributions to society.
A full outline of the impact is in the table at the bottom of the blog.
PhDs as an Investment
Investing in postgraduate and PhD education can provide significant long-term benefits for individuals and organisations. Wage premiums of PhDs compared to Master’s degrees are around £5,500 per year. In terms of wage premiums, women benefit most from their PhDs, leading to a narrowing of pay and earnings gaps. This could be due to higher qualifications reducing gender bias in the workplace.
However, pursuing a PhD alone is not enough to progress into higher paid management and leadership roles. The skills gained during a PhD, such as developing research expertise, should also be complemented with softer managerial and people skills. A PhD alone does not support these people management skills. Wider investment in employability, management, and leadership skills is also essential to enable the full returns to be accelerated or enhanced.
PhD education enhances the employment rate of graduates, and they are more likely to be in graduate level, high-skilled roles. PhD graduates also place importance on personal values, such as intellectual curiosity, social impact, or work-life balance. However, academia needs to retain students by focusing on social value, career progression, and funding of research. As 70% of PhD holders go on to leave academia within five years. Greater integration between the learning and experience of the workplace is necessary to maximise the impact on business.
Quadruple helix in action
Only 30% of PhD graduates become permanent research staff or progress into professorial roles, indicating a highly competitive career path within academia. This leakage of staff out of academia is an issue for career progression. The career progression opportunities need to be built into the university process to enable talent retention. But equally, for PhD students who wish to go outside of academia and into industry, it is important to develop transferable skills to succeed in the public, private, or third sector and maximise the impact of their advanced study.
There are a number of benefits to firms employing PhD researchers. These firms a have higher rates of patenting and collaboration with higher education institutes and other firms. Competitive grant-funded PhDs produce more academic outputs, while PhD graduates in industry help add absorptive capacity and foster innovation by collaboration and engagement with universities.
Broader social impacts
PhDs are a public good that benefits society as a whole, as holders of PhDs generate production externalities that raise the productivity of those without a PhD alongside whom they work. Those holding PhDs also teach the next generation, creating multiple long-term effects on society. Growth models see education as enhancing technical progress, regardless of how that education is provided, and society has a strong argument for sponsoring education to enhance growth through its impact on society. Furthermore, the largest benefits were gained by small businesses, compared to large firms.
Recommendations and findings
There are four main recommendations to be drawn from these findings.
- Funders should encourage cross-disciplinary PhD topics and work alongside other departments at other universities. This can help develop transferrable skills.
- PhDs increase earning power in the labour market, especially for women, however this effect is likely due to existing and sustained gender wage gaps in non-PhD roles.
- Funders should provide further funding opportunities for PhD students to develop softer skills and support their managerial and people management skills alongside their research skills.
- Funders should encourage the embedding of research culture within private businesses and charities in the arts, humanities, and social science sectors by encouraging PhD students to undertake placements in firms working in these sectors.
Read the full report.
This blog was written by Hannes Read, Policy and Data Analyst, City-REDI, University of Birmingham.
Disclaimer:
The views expressed in this analysis post are those of the author and not necessarily those of City-REDI or the University of Birmingham.