Earnings of University Graduates in Europe: A Comparison with Net Income

Impact of Education on Income: A report by the European Commission indicates that an additional year of education can increase income by approximately 7% in Europe, with university graduates earning significantly more than those with medium or low education levels.

Income Disparities by Education Level: The EU's median disposable net income in 2024 was €21,644, with substantial income gaps based on education: €29,490 for high education, €21,401 for medium, and €17,517 for low education, highlighting a 68% income difference between high and low education levels.

Regional Variations in Earnings Gaps: The earnings premium for highly educated workers varies across Europe, with the largest gaps found in Eastern and Southeastern Europe, while the Nordics show smaller disparities, indicating a regional pattern in education-related income differences.

Factors Influencing Income Gaps: Differences in tax systems, labor market structures, and social models contribute to the varying income gaps between education levels across countries, with stronger safety nets and labor protections in some regions leading to smaller disparities.