Students who achieve high grades at school will add £140,000 to their wages over the course of their lifetime, according to a new study.

The Department for Education said that pupils who achieve 5 A* to C GCSE grades, including maths and English, will earn £80,000 more than their peers who fail to achieve these grades. An additional £60,000 is added if they go on to achieve at least two A-levels.

The DfE said that these findings highlight the "economic value of the increased knowledge, confidence and employability that arises from success in school".

Researchers used data from the Labour Force Survey – from 2006 to 2013 – to come to its conclusion, which was informed by the Institute of Fiscal Studies.

Commenting on the news, education secretary Nicky Morgan said: "We know schooling benefits young people by expanding their knowledge, opening their minds and helping them to fulfil their vast potential.

"Our plan for education is working – there are now a million more children in good or outstanding schools. And we have presided over a 60 per cent increase in the proportion of young people studying core academic GCSEs - the qualifications that these figures show open doors to future success and employment."

The government's plan for education includes making exams tougher and boosting the standard of education (to enhance the value of qualifications); cracking down on behaviour and poor attendance; and transforming the quality of teaching by attracting more talent to the profession.