Wages of graduates of prestigious universities continue to be significantly higher than those of other colleges, signalling differentiation by quality (Figure 1.3.A). Moreover, the wage premium for an average university degree appears small relative to vocational colleges. There is a large difference in wages of university graduates between the top five and the bottom five occupation groups ranked by wages. This may reflect the difference between university quality as graduates of top universities are more likely to be offered top-paying jobs.