Critical Business Enquiry Project (UMCD9W-40-3)
1.1 Wage Returns to schooling
Numerous studies have suggested that there is a strong positive correlation between additional years of schooling undertaken and average wage returns (see Card 1999, 2001, Kane et al 1999, Kirby and Riley 2008, Silles 2007 and Park 1996). However, more recent UK research has focused upon returns related to the type of qualifications attained (Croucher et al, 2006). It has been found that most typically there are higher wage returns to academic qualifications than that of vocational qualifications whereas low level vocational qualifications bring little return - (see Dearden et al, 2002 and Sianesi, 2003). Suggesting then that low level vocational qualifications are in fact not worth pursuing and instead it is more beneficial to pursue an academic qualification.
However, other studies have challenged the perception that low level vocational qualifications are of no use. Dearden et al (2002) used data from the 1991 National Child Development Study and also the labour force survey from 1998, and found that the gap between academic and vocational qualifications reduced somewhat when the amount of time taken to acquire a qualification is controlled. For example vocational courses generally take much less time to complete, therefore giving the worker the time advantage in the labour market, although this seems a common sense finding, it is important because it had been overlooked in many previous studies, which can cause resulting errors.
As new findings are published about returns related to the type of qualifications attained, new policy implications are being highlighted. A more recent study by Mcintosh (2006) also used the labour force survey and his fin...
... middle of paper ...
... residence, quality childcare and a better quality school (Blanden, 2004). However it’s important to note that this is not the case for the whole population, as a child could live in a much lower income family and still gain the same levels of support and guidance from their parents. Given this however, over the past few decades even though participation in high levels of education has increased for someone from a more disadvantaged family background, the level of participation is still much less than those who have been brought up in a stable, above average annual wage household.
Parental Education has also been shown to have a positive effect on children’s return to education see (Oreopoulos et al 2003, Chevalier 2004, Black et al 2005 and Maurin and McNally 2008). All these studies aimed to find the causal impact of the parents education on the child’s outcomes.
For such families, “sustaining children’s natural growth is viewed as an accomplishment” (Lareau 34). Lareau also reported that many working class and poor parents feel that educators hold the expertise, and usually fear doing the “wrong thing” in school-related matters (Lareau 357). What this usually leads to is trying to maintain a separation between school and home (Lareau 358).
They go on to say, "While the average return to obtaining a college degree is clearly positive, we emphasize that it is not universally so. For certain schools, majors, occupations, and individuals, college may not be a smart investment." (page. 209 Para. 1). This applies more to older students rather than students who are fresh out of high school. One of the main reasons the return rate is greater is because most of these students who are already working need more education in order to further themselves in their workplace. The authors also add that "The main problem is one of selection: if the smartest, most motivated people are both more likely to go to college and more likely to be financially successful, then the observed difference in earning 's by years of education doesn 't measure the true effect of college." (Page 209, Para #2). This means students who do not take advantage of all that college has to offer are not really getting the full experience. Why not invest in four years and come out with the opportunity to make more money? Some students want to go ahead and get school out of the way. Furthering education accumulates lots of debt. Some student 's choose not to overwhelm themselves with those costly decisions; they want to get right to work. Owens and Sawhill provided enough information on how logical it is to attend
...Graduating from college is one of the few sure fire ways to make a relatively large amount of money in your lifetime, but what is learned at college is not responsible for their graduate's success. The benefits from a college diploma come from the signal it sends to employers that you are worthy of being hired. But this signaling is collectively immensely costly. Millions of young men and women spend billions of dollars and years of their lives in unproductive and costly signaling. The current relationship between college and future wages and employment is imposing enormous deadweight losses on the United States economy. Altering long-held norms about college will be difficult, but it is vital. A slow transition to a new regime with alternative screening mechanisms for employers and colleges teaching specialized skills and knowledge would make everyone better off.
Rodney K. Smith’s mere opinion of his publication is that children with a higher level are more like to secure a job rather than those with no or little education. His view is upheld by the statistics of bureau that gives a clear statistics of the percentage of the salary earned by students with higher education and that of lower education. This makes his claim more reliable and credible because the bureau of labor and statistics is a reputable institution in the United States that deals with the percentage of people who work in United State. Smith’s own personal anecdote appeals to the feelings of the audience in which it ignites them with feelings of possibility.
Students who live below the poverty line have less motivation to succeed, and their parents are less inclined to participate in their child’s education, often because the parents cannot provide support for their children. Although it’s logical that school districts from poorer communities cannot collect as much funding as the richer communities, people stuck in these low-income communities often pay higher taxes, and still their school districts cannot accumulate as much money.... ... middle of paper ... ...
Berggren, Caroline. "The Influence of Higher Education Institutions on Labor Market Outcomes." European Education 42.1 (2010): 61-75. Academic Search Complete. EBSCO. Web. 9 Mar. 2011.
...e Ability in Explaining the Level of and Change in the Return to Schooling’, The Review of Economics and Statistics, Vol.83, No.1, pp.1-12.
Much attention has been devoted to the 84 percent of college graduates get high salary than high school education. Carnevale, Strohl and Melton argue that college remains the best alternative for young workers with one caveat: Not all majors are created equal. Some majors offer substantially better employment prospects than others. Researchers posted their major findings: Choice of major substantially impact on employment conditions and salaries. In general, majors that are linked to occupations have better working conditions than majors focused on general skills. For many, pursuing a graduate degree may be the best option until the economy recovers, but not all graduate degrees outperform others. Compared with different earning in different
Socioeconomic status can be defined in terms of family wealth and assets as well as educational background. For this reason, many comparisons can be made between socioeconomic status and education. Furthermore, academic achievement and the level of education reached by an individual, is determined by socioeconomic status. Research has shown that environmental circumstances and family issues greatly influence a child's future because the impact of the socioeconomic status depends on the level to which an individual becomes successful in life. Research also shows that family conditions can impact a child’s education and their quality of life. For example, being raised in a high-economic culture increases the chances that a child will attend
In the past, the difference between the non-graduate and graduate job level was significantly pronounced (Economic Indicators, 2011, p. 2). Those who leave the universities tend to get into tradition graduate professional fields, for example, medicine and law. In other scenarios, they have been accepted onto graduate management training schemes with prestigi...
Additionally, a startling outcome of this mismatch is the long-lasting damage mismatches cause. A 2003 study completed in Sweden, emphasized the imperative of young people finding appropriate first job placements for their skill level. O’Reilly cites this study, in the article “Five Characteristics of Youth Unemployment in Europe”, which found that “61% of Swedish 18-29 year olds who were overeducated in 1981 were still so after 10 years” (O' Reilly, Eichhorst, & Gabos, 2015). This indicates that a legacy of underemployment exists once one enters the labor market, and many individuals are unable to break out of this cycle. In an economic environment where college attendance is expected, there is unfortunately no connection between being overeducated and over-skilled (O' Reilly, Eichhorst, & Gabos, 2015). Students may have formal education that over qualify them for particular positions, but employers find they do not possess applicable skills. While there is little argument that mismatches between jobs and skill levels are detrimental, there is little concrete understanding of why these mismatches truly
Australia, a country with total population of approximately 23,456,977 people (Australian Bureau of Statistics 2014) have shown to have an improving economy as the unemployment rate has fallen to 5.8% in March 2014. However, the number of full-time employment decreases by 22,100 whereas part-time employment increases by 48,200 (Australian Associated Press 2014). According to Denise Bradley review, he suggested funding an extra 330,000 graduates by 2020 to meet 40% population for tightening and strengthen the quality control of the future workforce (Slattery, L 2008). According to PC report, early school leavers are most likely to receive a lower pay compared to those of higher education level (McLachlan, R, Gilfillan, G & Gordan, J 2013). Based on that statement, the present research analysis was conducted to investigate whether is there any factual indication that there is a positive relationship between the level of education and the amount of wages earned.
The employment structure is typical for a developed first world country: just 1% of the employees are working in agriculture, about 18% are working in the manufacturing and construction industries, and 81% of the employed people are working in the service sector. A high amount of workers in the service sector requires a high level of education in any country. In 2014 approximately 80,000 students graduated who face a small unemployment rate of 4,4%. Their income differs significantly from those who do not have a graduate degree, as the Graduate Labour Market Statistics of the Department for Business Innovation and Skills show. The unemployment rate in the UK is 5,4% in
Many factors comprise socioeconomic, but in this study the researcher only used household income and household’s available resources as determinants of education. Parents with high income have the opportunity to give their children a much more comfortable life (Hassink and Kiiver, 2007). Parents who earn more tend to invest and spend more on their children’s education therefore securing quality education through acquiring more years of schooling that perhaps leads to a better future for their
In this paper I am going to critically discuss how parental involvement in children's education does make a positive difference to pupils' achievement. I will be using research in differing trustworthy media such as literature, journals and government documents to strengthen my discussion.