7. Earnings Analysis
Key Findings
- The average salary for all graduates in 2021 was €38,044 while younger graduates reported an average salary of €33,904. These figures were an increase on the 2020 average salaries of €37,104 and €32,596 respectively.
- The gender salary gap in 2021 stood at €4,766 for all graduates and €3,555 for younger graduates. When like-for-like graduates are compared, the gender pay gap reduces by approximately half to €2,421 for all graduates and €2,039 for younger graduates.
- The gender pay gap remained broadly stable between 2018, 2020 and 2021 but has widened for younger graduates.
- On average, male undergraduate graduates earned €36,966 compared to €31,552 for females. As such, the undergraduate gender salary gap stood at €5,414 for the undergraduate class of 2021 nine months after graduation. This gap reduces to €2,252 when like-for-like graduates are compared.
- On average, male postgraduate graduates earned €46,154 compared to €42,233 for females. As such, the postgraduate gender salary gap stood at €3,921 for the postgraduate class of 2021 nine months after graduation. This gap reduces to €2,835 when like-for-like graduates are compared.
- Affluent graduates earned €4,123 more on average than those from disadvantaged areas. When like-for-like graduates are compared, the gap reduced to €922, and this compares with a figure of €1,504 for the class of 2020.
- Average salaries were highest for ICT graduates at €45,197, while Arts & Humanities graduates reported the lowest salaries (€29,770).
- Graduates working in the Transport and Storage sector had the highest reported average earnings (€44,775).
Data and Methodology
This chapter focuses on graduates who reported their main activity as working in full-time employment nine months post-graduation. Excluding working graduates where salary information is not provided, the sample size for section one of this analysis is 17,154 (class of 2021). This sample is further reduced to isolate earnings for younger graduates only, who are defined in this analysis as graduates younger than 30 years of age (12,815). Results outlined below are therefore split into ‘All Graduates’ and ‘Younger Graduates’, and these can be compared by selecting the available filters in the charts provided. Finally, results provided in this chapter are weighted to account for differing response rates by institute, NFQ level and mode of study.
Results in section one of this chapter reflect mean predicted salaries by key characteristics before and after controls are used. ‘Before controls’ equates to raw mean salary, without accounting for any differences in characteristics between groups. ‘After controls’ equates to model predicted mean salary after all controls are used in an effort to explain the variation in earnings. The key characteristics explored are earnings by gender, socio-economic background (based on Census small area deprivation index scores derived from student home address data), ISCED broad field of study, NACE sector of employment, NFQ level and region of employment.
The second section of this chapter explores developments in mean reported earnings across degree level. Average earnings are analysed at undergraduate and postgraduate degree level. The undergraduate sample is 10,392 graduates and the postgraduate sample 6,762. Results are provided for gender, DIS group, ISCED broad field of study, NACE sector of employment and region of employment.
Section 1: Earnings by Graduate Type
All Graduates
Gender: On average, male graduates earned €40,556 compared to €35,790 for females. As such, the gender salary gap stood at €4,766 for the class of 2021 nine months after graduation. Controlling for factors likely to influence graduate earnings (see methodology above for these factors), the gender pay gap is predicted to reduce by about half. This indicates that approximately half of the raw gender pay gap can be explained by graduate and institute level characteristics included in the model. For example, when comparing like-for-like graduates, predicted earnings for males reduced to €39,320 while the predicted salary for females increases to €36,899. This reduces the predicted gender pay gap to just under €2,500.
DIS Group: Before controls are applied, the gap in earnings between those from affluent and disadvantaged areas was €4,123. When like-for-like graduates are compared however, the predicted gap in earnings by socio-economic background reduces significantly. After controls are applied, the predicted gap is reduced to €922 for all graduates, and this compares with €1,504 for the Class of 2020. There is very little variation in earnings between those from marginally above and marginally below average, as measured by the small census area deprivation index scores.
Field of Study: At €45,197, ICT graduate salaries are more than €7,000 above the overall average (€38,044) in 2021. Other fields of study with above average reported earnings were Engineering, Manufacturing & Construction (€42,761) and Health and Welfare (€38,728). On the other hand, Arts & Humanities graduates earned the lowest salaries nine months after graduation (€29,770). When like-for-like graduates are compared, ICT graduates are predicted to earn the highest salaries whilst Arts and Humanities earn the lowest, albeit the variance in predicted average earnings across different fields of study is significantly lower.
Sector of Employment: Graduates employed in the Transportation and Storage sector were the highest paid according to these data, with an average salary of €44,775. Those working in Industry and Construction also report average annual salaries of €41,460 and €41,977 respectively. At the other end of the scale, graduates working in the Accommodation and Food Services and Wholesale and Retail Trade sectors earned the least nine months after graduation. Comparing like-for-like graduates reduces the predicted variance between the highest and and lowest paid sectors, however the ordering remains broadly unchanged.
NFQ Level: PhD graduates (Level 10) earned the most nine months after graduation at €50,272. Masters (Level 9) and Diploma (Level 7) graduates also earned above the average at €43,383 and €40,118 respectively.
Region of Employment: Graduates working in the Dublin region had the highest average salary nine months after graduation (€39,226). Graduates working in the Border region had the lowest average salary at €35,778.
Younger Graduates
Gender: On average, younger male graduates earned €35,827 compared to €32,272 for younger females. The gender pay gap for younger graduates was smaller than all graduates, standing at €3,555 in unadjusted terms. When like-for like-graduates are compared, the predicted gender pay gap reduces by 43% to €2,039.
DIS Group: Before controls are applied, the gap in earnings between those from affluent and disadvantaged areas for younger graduates was €2,217. When like-for-like graduates are compared however, the predicted gap in earnings by socio-economic background reduces significantly. After controls are applied, the gap is reduced to €568 for young graduates, and this compares with €1,040 for the Class of 2020. There is very little variation in earnings between those from marginally above and marginally below average.
Field of Study: For younger graduates, ICT remains the highest earning field of study, followed by Engineering, Manufacturing and Construction. The salaries of Education graduates have been overtaken by those from the Health & Welfare, Natural Sciences, Mathematics & Statistics and Business, Administration and Law fields of study. However, after controlling for the set of earnings determinants, and like-for-like graduates are compared, younger graduates from the Education field are predicted to have the second highest earnings nine months after graduation, after ICT graduates.
Sector of Employment: The sector with the highest average salary nine months after graduation was Information and Communication (€37,368), followed by Construction (€36,982). The two lowest paid sectors is unchanged for younger graduates working in Wholesale and Retail (€29,053) and Accommodation and Food Services (€26,821).
NFQ Level: PhD graduates (Level 10) earned the most nine months after graduation at €45,957. Masters (Level 9) graduates also earned above the average at €37,365. Level 6 graduates meanwhile earned the least at €31,180.
Region of Employment: Focusing on younger graduates, a similar picture emerges as to all graduates; graduates working in Dublin have the highest salaries on average, whilst those in the Border region have the lowest.
Section 2: Earnings by Degree Level
Undergraduate
Gender: On average, male undergraduate graduates earned €36,966 compared to €31,552 for females. As such, the gender salary gap stood at €5,414 for the undergraduate class of 2021 nine months after graduation. Controlling for factors likely to influence graduate earnings (see methodology for factors included), the gender pay gap is predicted to reduce by almost 58% for all graduates. This indicates that approximately half of the raw gender pay gap can be explained by graduate and institute level characteristics included in the model. For example, when comparing like-for-like graduates, predicted earnings for males reduced to €35,307 while the predicted salary for females increases to €33,055. This reduces the predicted gender pay gap to just under €2,500.
DIS Group: Before controls are applied, the gap in earnings between undergraduate graduates from affluent and disadvantaged areas was €1,487. When like-for-like graduates are compared however, the predicted gap in earnings by socio-economic background reduces significantly. After controls are applied, the gap is reduced to €370. There is very little variation in earnings between those from marginally above and marginally below average.
Field of Study: At €41,980, Engineering, Manufacturing & Construction graduate salaries are more than €7,855 the overall average (€34,125) in 2021. Other fields of study with above average reported earnings were ICT (€40,090) and Natural sciences, Mathematics and Statistics (€34,678). On the other hand, Arts & Humanities graduates earned the lowest salaries nine months after graduation (€27,158). When like-for-like graduates are compared, Education graduates are predicted to earn the highest salaries whilst Arts and Humanities earn the lowest, albeit the variance in predicted average earnings across different fields of study is significantly lower.
Sector of Employment: Graduates employed in the Construction sector were the highest paid according to these data, with an average salary of €40,927. Those working in Transportation and Industry also report average annual salaries of €39,468 & €38,362 respectively. At the other end of the scale, graduates working in the Accommodation and Food Services and Wholesale and Retail Trade sectors earned the least nine months after graduation. Comparing like-for-like graduates reduces the predicted variance between the highest and and lowest paid sectors, however the ordering remains broadly unchanged.
Region of Employment: Graduates working in the Dublin region had the highest average salary nine months after graduation (€35,317). Graduates working in the Border region had the lowest average salary at €31,442. Comparing like-for-like graduates, those working in the Border region are expected to earn €31,206, marginally below those working in the West (€31,583).
Postgraduate
Gender: On average, male postgraduate graduates earned €46,154 compared to €42,233 for females. As such, the gender salary gap stood at €3,921 for the class of 2021 nine months after graduation. Controlling for factors likely to influence graduate earnings, the gender pay gap is predicted to reduce by almost 28% for all postgraduate graduates. For example, when comparing like-for-like graduates, predicted earnings for males reduced to €45,577 while the predicted salary for females increases to €42,742. This reduces the predicted gender pay gap to just under €3,000.
DIS Group: Before controls are applied, the gap in earnings between those from affluent and disadvantaged areas was just under €4,774. When like-for-like graduates are compared however, the predicted gap in earnings by socio-economic background reduces significantly. After controls are applied, the gap is reduced to €1,446 for all graduates. There is very little variation in earnings between those from marginally above and marginally below average.
Field of Study: At €50,604, ICT graduate salaries are more than €6,500 above the overall average. Other fields of study with above average reported earnings were Services (€46,207) and Health and Welfare (€47,852). On the other hand, Arts & Humanities graduates earned the lowest salaries nine months after graduation (€36,679). When like-for-like graduates are compared, ICT graduates are predicted to earn the highest salaries whilst Arts and Humanities earn the lowest, albeit the variance in predicted average earnings across different fields of study is significantly lower.
Sector of Employment: Graduates employed in the Transportation and Storage sector were the highest paid according to these data, with an average salary of €53,154. Those working in Public Administration and Defense also report average annual salaries of €49,394. At the other end of the scale, graduates working in the Accommodation and Food Services and Agricultural sectors earned the least nine months after graduation. Comparing like-for-like graduates reduces the predicted variance between the highest and and lowest paid sectors, however the ordering remains broadly unchanged.
Region of Employment: Graduates working in the Mid-West region had the highest average salary nine months after graduation (€44,782). Graduates working in the South-West region had the lowest average salary at €43,538. The Border region was excluded due to a small number of observations.
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More data on graduate earnings is available here.