23 hours ago

Economics of Education: The Impact of Education on Income, Economics, and Inequality

Does a university degree improve your life?

Yes. Many papers have discussed the reduced importance of a college degree in a resumé and the increasing value of work experience. While it is true that a college degree does not get you accepted as a Fortune 500 CEO the instant you graduate and may even hold you back due to debt repayment, it still helps with a salary. University graduates, on average, earn 84% more than people with just high school diplomas (or in the UK, A Levels or higher level BTEC).

Besides a purely financial perspective, university-level education contributes to a healthier and happier society. People holding university degrees are less likely to start smoking, drinking and experiencing obesity. Moreover, for every 10% increase in the college-educated population in the area, there is a decrease of:

How does education affect economies directly?

An educated population is known to make economies more mobile and less prone to permanent damage. Empirical and theoretical research made by the National Bureau of Economic Research (US) shows a direct correlation between economic progress and higher education. Similarly, the OECD carried out simulation research to find out the importance of higher education in economics. For every 25 PISA points added to the country's initial scores, there was a 3% increase in national GDP.

Overall, most, if not all, studies highlight the importance of higher education in communities and nations. The contributions educated people have to offer are irreplaceable in both micro and macroeconomics and are highly valued by workplaces and governments.