L Can a university educationbetter your job prospects and buyyou the good life?

THE answer to this question issimply “yes”. To a large extent, auniversity degree is and will beconsidered by most people as theholy grail of education.

No wonder, desiring parentslauded Prime Minister Lee HsienLoong’s National Day Rally an-nouncement last year that thenumber of university placeswould be increased. Some evensuggested that his target, to ab-sorb 30 per cent of each studentcohort by 2015, seemed low; theywanted enough places to soak up40 per cent.

After all, most feel that a de-gree is the minimum requirementfor strong job prospects and ahigher quality of life.

A committee set up by theEducation Ministry to study thefeasibility of more places and path-ways in higher education hasnoted that more places are indeedneeded: first, to accommodate therising calibre of students, andsecond, to prepare manpowerneeded for a more diversified Sin-gapore economy.

But this committee has notspecified the new cohort participa-tion rate (CPR) – the percentageof Singaporeans in each Primary 1cohort who will gain entry to localuniversities – that it may aim forafter 2015.

The current rate is 27 per cent.This means that only a quarter ofeach Primary 1 cohort are offeredplaces at local universities.

By 2015, more places will beadded across the Singapore Insti-tute of Technology, the SingaporeUniversity of Technology and De-sign, the Yale-National Universi-ty of Singapore liberal arts collegeand the Nanyang TechnologicalUniversity’s medical school, rais-ing the CPR to 30 per cent.

The figures do not take into ac-count the 5,000 to 8,000 stu-dents who head to universitiesoverseas or pursue full-time de-gree studies at more establishedprivate schools here. Taken to-gether, the rate would be closer to50 per cent.

But simply upping the numberof places at universities here ad-dresses only one part of the ques-tion. What actually happens be-yond graduation – and whetherthose degrees translate into better

lives – is another matter.To address the issue, we must

consider if university graduateshere earn more in their lifetime,and enjoy good job prospects.

Extensive research conductedin other parts of the world sug-gests that in deciding whether toinvest in a degree, considering apessimistic short run in which uni-versity graduates move into ashaky job market is short-sighted.

Recent figures released by theUS-based Pew Research Centreshowed that despite a weak econo-my in the United States, peoplewith an undergraduate college de-gree still earn, on average, in ex-cess of US$1 million (S$1.3 mil-lion) more over their lifespan thanthose without one.

Although figures here are notas up to date, a 2007 study on thereturns on higher education bythe Manpower Ministry (MOM)showed that every extra year ofschooling enhances a worker’searnings by 13.7 per cent. The rateof return is also higher for tertiaryeducation.

This means that a graduatewith more years invested in aca-demics generally earns more.

This study also found that asthe economy shifts towards high-er value-added and knowledge ac-tivities, demand for more educat-ed workers will rise, thus enhanc-ing the returns on higher levels ofeducation.

When drilling down to differ-ences between graduates andnon-graduates, like polytechnicdiploma holders, the former alsogenerally enjoy better outcomes.

When the Singapore economyhit a speed bump three years ago,diploma holders fared better thangraduates.

An MOM report for the thirdquarter of 2009 showed thatamong those unemployed, about6 per cent were diploma holderswhile 22 per cent were degreeholders. The same pattern wasseen for redundancies, with fewerpoly graduates laid off than univer-sity graduates.

Recruiters explained that polystudents cost less to hire and re-tain, and possessed more practicalskills that employers valued, espe-cially in a downturn. Retrenchedpoly graduates were also morewilling to take lower-paying jobs.

Nonetheless, in the subsequentupswing, the odds favoured uni-versity graduates.

Job prospects and salaries of de-gree holders recovered, and evenovertook that of diploma holders.An MOM labour force report in2010 showed that unemploymentwas 3.7 per cent for degreeholders compared to 3.9 per centfor diploma holders.

The rosier picture for gradu-

ates, however, needs to be exam-ined with some circumspection.For one, past data on graduate per-formance does not necessarily re-flect future outcomes.

The opening up of more placesmight lead to a glut of graduates,particularly at times when job mar-kets are unable to absorb them all.

South Korea, with an advancedeconomy like Singapore’s, is aclassic example. According to theAsian Sentinel, fewer than half ofthose who graduated in 2010 hadfound full-time jobs by the end oflast year.

On another front, it is fairly ob-vious that not all college degreesare created equal. Returns on de-grees in accountancy and law, aswell as the sciences and engineer-ing, are higher compared to thosein social work, psychology andEnglish.

Employers, including the civilservice, also make a distinction be-tween different types of institu-tions.

So far, employment prospectsof graduates from publicly fundeduniversities have remained onpar, but the same cannot be saidfor graduates of private schools.

The first employment surveycarried out by the Singapore Insti-tute of Management released re-cently showed that while its gradu-ates receive multiple job offers,they are typically paid several hun-

dred dollars less each month thantheir peers from the publicly fund-ed universities.

All these notes of caution leadto one thing: as the quantity ofgraduates increases, so shouldtheir quality. Only then can thatpiece of paper lead to better out-comes.

Beyond the paper chase

THE issue before the Governmentis not merely expanding universi-ty places, but offering more choic-es and high-quality education tostudents.

So while all universities mustturn out graduates with deepknowledge and useful skills, theyshould also place as much atten-tion on innovating and cultivatingin them an X factor.

Take the Singapore Manage-ment University (SMU), which atits outset in 2000 introducedAmerican-style admission, curric-ulum and teaching in Singapore.Four years later, employers receiv-ing its first graduates noted an“SMU difference” – they weremore polished and well-spoken.

Now, the university reviewcommittee looking into setting upa fifth university has been study-ing different university models inEurope, Asia and the US, to arriveat one that will serve students andthe needs of the Singapore econo-

my.Its main target: polytechnic

graduates, several thousand ofwhom head overseas or attend pri-vate schools to top up their diplo-mas with degrees.

The 15-member committeeheaded by Minister of State for Ed-ucation Lawrence Wong is rightlylooking at universities which put apremium on hands-on learningand applied real-world research,namely those in Hong Kong, theUS and Germany.

Drexel University, a private in-stitution in Philadelphia, was ofspecial interest for its unique co-operative education programme.

All its undergraduates are re-quired to combine job internshipswith studying for their degrees,graduating only after five years,rather than the typical four, hav-ing completed up to 18 months ofrelevant work experience.

This system has been found togive them a much-needed edgeover other fresh graduates in a

tough job market.On another recent visit to

study Germany’s applied universi-ties and work-study programmes,Mr Wong said his committee wasdefinitely leaning towards a prac-tice-oriented university thatcould offer close links to industry,as well as programmes that com-bine work and study.

This model would build on thestrengths of poly-trained gradu-ates, who are notably morehands-on workers and attuned tothe practical needs of industryand business.

To be sure, making room forsuch diversity in higher educationis a step towards improving thequality of graduates.

Preparing graduates to beadaptable and to stay relevant tomarket needs will also ensure thatthe degree is not just a paperchase, but continues, over time,to net positive outcomes in termsof pay and opportunities.

sandra@sph.com.sg

JOIN us for The Big Quiz! For registration details, news reportson school talks and students’ responses, go to www.straitstimes.com/thebigquiz/

View clips from school talks at www.razortv.com.sgStudent teams will compete for the top cash prize of $5,000

and a trophy. The next best teams will receive $3,000, $1,000and $500 respectively.

The competition is open to students in the first year of juniorcollege or the equivalent, such as Year Five of a six-yearintegrated programme. The teams, comprising three studentsand a reserve, will slug it out over four rounds next month and inAugust. Questions will be based on reports in The Straits Times.

Upcoming talks: July 4, Temasek Junior College; July 13,National Junior College; July 20, Anglo-Chinese Junior College.

Next week’s primer topic is on censorship in the arts and themedia. Readers with questions on primer topics can e-mail themto stprojects@sph.com.sg

Nanyang Polytechnic students on campus. A 2009 MOM report showed that fewerpoly graduates were laid off than university graduates during the downturn, butin the subsequent upswing, the odds favoured degree holders. ST FILE PHOTO

Think you know it all?

By SANDRA DAVIESENIOR WRITER

GREATER standardisation andcomputerisation of white-collarwork and an increase in graduatenumbers might be challenging thenotion that “learning equals earn-ing”.

So say British social scientistsPhillip Brown, Hugh Lauder andDavid Ashton in their book, TheGlobal Auction: The Broken Prom-ises Of Education, Jobs And In-comes. Speaking to The StraitsTimes, Professor Brown, 55, fromCardiff University, said a universi-ty education is better seen as anopportunity to pursue subjectsstudents are passionate about andfind intellectually exciting.

Changing how they choose, headded, “would also offer Singa-pore a better chance of creating anew generation of innovators andinventors who go that extra milebecause they are doing it out ofgenuine interest rather than sim-

ply for the money”.Policymakers worldwide regu-

larly link tertiary education toindividual and national economicadvancement. A knowledge-based economy, in fact, promotesthe belief that more highly educat-ed workers are needed to do theworld’s thinking, while workers inemerging economies are limitedto low-skill, low-wage jobs inmanufacturing or service work,such as in call centres.

The thinking was this: Going tocollege equals writing a chequewith a lifetime guarantee of awell-paid job.

Yet underlying assumptions tothis might be flawed. When heand his fellow authors spoke tobusiness leaders and policymakersin China, India and South Korea,as well as those in the UnitedStates, Britain and Germany, theydiscovered there was a global auc-

tion for high-skill, low-wagework.

Employees may want to in-crease the value of their labourand earn higher wages, but compa-nies wanting to maximise profitsaim to lower their labour costs. Sothey will go where they can findworkers with the skills they need,but who are prepared to acceptmore modest wages.

The dampening effect on gradu-ates’ salaries is exacerbated byoversupply. In the past 10 years,undergraduate numbers have dou-bled. China alone has more univer-sity students than the US, and “isalso producing more scientistsand engineers, sometimes of a su-perior quality to those found inthe West”.

At the same time, companiesare now able to make low-costproducts to world-quality stand-ards. Multinationals, bolstered by

government policies and the local-ised graduate boom, are placingR&D facilities alongside factoriesin those countries, close to boom-ing new consumer markets.

All this has expedited DigitalTaylorism. Taylorism refers to thelarge-scale, assembly-line manu-facturing principles laid down byUS industrial engineer FrederickTaylor. Digital Taylorism occurswhen white-collar work is brokendown into elements. The elementsare standardised and computer-ised, such that they can be deliv-ered by low-skilled, low- wage la-bour.

In addition to outsourcing ofwhite-collar, back-office jobssuch as data inputting, he ex-plained: “Now the middle office isgoing too. Analysing X-rays,drawing up legal contracts andprocessing tax returns are exam-ples of skilled jobs going off-

shore.” These developments havecreated what he terms “a globalwar for talent” for the best andthe brightest. So while a universi-ty graduate can get a job, “hewould have to work harder, long-er hours to keep the job”.

What’s more, class distinctionsamong graduate workers are alsoemerging.

“There will be a cadre of think-ers and decision-makers at thetop – perhaps 10 per cent or 15per cent of the total – but themass of employees, whether ornot they hold high qualifications,will perform routine functions formodest wages.”

Those with elite qualificationsare more likely to be made “think-ers”, leaving those with gar-den-variety university degrees tobe “doers”.

In England, this trend has leftabout a third of graduates with

outstanding education loans fromas far back as 1998 high and dry –they have not even reached the re-quired modest re-payment salarylevel. Whether this group eventu-ally sees a payoff depends on howwell their society delivers new op-portunities.

To students contemplating fur-ther education, he says: “Followyour dreams but also do yourhomework.”

Ask hard questions about yourreasons for getting a degree,which colleges offer high-qualityeducation and if you can get thejob you want after graduation.

“However you look at it, goingto university gives you morechances of getting a job, even if itdoesn’t deliver the house, the bigcar and holidays that everyone inprofessional jobs seems to have inthe movies.”SANDRA DAVIE

Graduation Day celebrations at NUS last year. While all universities must turn out graduates with deep knowledge and useful skills, they should also place as muchattention on innovating and cultivating in them an X factor. ST FILE PHOTO

Earning might not equal learning

This primer is the sixth instalment of a 12-partseries in the Opinion pages, in the lead-up toThe Straits Times-Ministry of EducationNational Current Affairs Quiz.

PRIMER

Groominggraduateswith anextra edge

F R I D A Y , J U N E 2 9 , 2 0 1 2 OOPPIINNIIOONN A29