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...
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... 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.
The parents as the role models for their children that means many children will do what their parents mostly do, hence, is really important that the parents teaching their child. However, the research find out that the parents with higher socioeconomic states are more involved in their kids’ schooling (Chu et all, 1996) The reason seems obvious to me due to the importance of parents’ education, if the parents having more school, than parents could be like a ‘coach’ for their kids, that parents could guide the road of succeed. Also, the parents with higher education might provide a favorable environment since is easier to get a steady job with higher education. According to Kean, (2005), the parents with higher education have positive influence on children’s outcome, cause the majority of parents who are very educated might influence their kids though beliefs and behaviors, that will lead children and youth to a positive outcome (Kean, 2005). Parents’ educations have an influence on children in many different ways, although the parents’ expectation can affect children as well. Kean illustrated if parents expect high achievement, then it predicts better chance for achievement for their children (Kean, 2005). Moreover, sometimes parents’ expectation showed how
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.
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
If more people went to college, and less went the vocational route, jobs will take a momentous hit. Today, companies will not even touch an application that does not include a Bachelor’s Degree; even if the Bachelor’s Degree has nothing to do with the job being applied for. Attention is not given to whether the hopeful applicant qualifies for the job; all that matters is that the applicant has a Bachelor’s degree. Murray best sums up the American job market when he says, “Employers do not value what the student learned, just that the student has a degree” (Murray). However, if less people obtain a Bachelor’s Degree, employers will be forced to base applicants on their skills, and abilities. Furthermore, important vocational jobs that lie vacant will be filled. Good electricians, carpenters, and construction workers will always be in
...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.
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.
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
...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.
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...
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
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
O’Sullivan’s (2006) argues that the Employability Paradigm which emerged in the 1970’s served to distinguish a group of students who were not achieving the standard needed to guarantee employment. Employability is the assessment of those with the lowest chance of success in an economically motivated nation. It posits that intervention is necessary to prevent those individuals who have failed within the system from being dependent on social welfare and subsequently from being socially excluded (O’Sullivan 2006). In the early 1970’s, Ireland’s entry into the European economy and the changing employment market combined to connect education attainment to employability. As a result, educational credentials became the accepted way of assessing ability and this served to focus attention on those leaving school early with little or no qualifications. O’Sullivan argues that while the policy of the state, on the surface, seemed to support equal opportunity with the provision of free access to secondary education, the reality for most working class students was far from equitable. There were limited interventions available for those who needed help to develop the skills needed to benefit from access to secondary education and these students became disenfranchised. The disc...
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.
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.