SWOB 9. Is it Worth It? Are there too many graduates in the UK?

Welcome back. The Bank of England has a regular labour market commentary in its quarterly bulletin in which it looks at issues that may influence productivity, wage pressure and hence inflation (if wage pressures are passed on to consumers in the form of higher prices). In their latest post there is a chart which suggests that the wage benefits of being a graduate have receded over the past 20 years, which they suggest may be because the supply of graduates has risen faster than demand or that the "signalling" value of a degree is more muddied now because so many people have one. Yet the IFS published a study this week saying there were large benefits to being a graduate - though some graduates are more equal than others. So what's going on?