A high ATAR score is strongly linked to earning a higher income

Achieving a high ATAR score is strongly linked to earning a higher income according to a new analysis of official data.

Achieving a high ATAR score is strongly linked to earning a higher income, according to new research.

It pays off to to make the effort to get high ATAR. Year 12 students who achieve an ATAR score of over 98 earn a median salary by age 30 which is $33,000 higher than students who get an ATAR below 70.

The findings, released in the week that year 12 students find out their ATAR scores, show that the ATAR level achieved is highly predictive of income by age 30.

“Individuals with higher ATAR are more likely to earn higher income,” said Silvia Griselda from e61 Institute, one of the authors of a new study.

By age 30, people with an ATAR below 70 earn a median of about $70,000 a year in 2022 dollars. Those between 70 and 80 earn a median of just over $75,000. An ATAR in the 80-90 range brings a median salary of a little over $80,000, 90-95 leads to median salary of nearly $90,000, 95-98 nearly $95,000, and over 98 nearly $105,000.

In comparison, people without a university education earn a median of just under $60,000 by age 30.

The data also shows that people who don’t go to university earn more than those who do in the years immediately after leaving school.

But by age 25 the situation is reversed and all groups who have gone to university, no matter what their ATAR band, have a median salary above those without a university degree.

The e61 research note, titled What’s in an ATAR? How can university admission scores predict future income?, draws from anonymised Australian Bureau of Statistics data which links income levels (derived from tax returns) to ATAR scores, which are recorded when a student registers for a HECS loan.

While the link between high ATAR and high income is very clear, there is also a wide variation in income for people in each ATAR band.

For example, among 30 year olds with ATARs above 95, the top 10 per cent of earners get over $156,000 a year, while the bottom 10 per cent earn less than $30,000 a year.

There is a similar salary spread for 30 year old workers without university degrees. The top 10 per cent of this cohort earn over $115,000 a year even though their median income is just under $60,000.

The research also looked at people who entered university without an ATAR score, which generally means mature age students, who went to university later. They earn less than people who enter university with an ATAR after leaving school, probably because they are delayed in commencing their professional career.

The study points out that high paying occupations often require university degrees with high ATAR cut-offs, which one reason why those with high ATAR scores earn more. Another possible reason is that people with high ATAR scores are likely to work more hours, which leads to a higher income.