Relationship Between Income And Education Level Essay

1254 Words Dec 12th, 2016 6 Pages
The wealth of individuals in a society is an important economic issue. As a result of this, there has always been an interest in what determines the underlying forces of income distribution. Normally it is thought that education has the power to raise the standard of living for members of a society. Spending money on education by policymakers is justified as a way to reduce income inequality. The literature does suggest that education is a major factor in reducing income inequality. But some studies reach the conclusion the relation between education and income is not always clear. For instance, is there a specific numeric relationship between level of education and income? The purpose of this paper is to understand the relationship between income and education level. The research will examine numeric values that explain how a certain level of education affects yearly median income. These numeric values will allow readers to understand the level of education needed in order to obtain the desired lifestyle. In so doing this, one will also acknowledge the minimum educational level allowing for one to comfortably go about day-to-day life. To address the inquiry, the data will be obtained from Infoplease.com, which presents data from 1990 – 2010. Using simple linear regression models, the study will present results for numeric income earnings of an education level up to an Associate 's Degree, and an education level from a Bachelor 's Degree…

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