logo
g Text Version
Beauty & Self
Books & Music
Career
Computers
Education
Family
Food & Wine
Health & Fitness
Hobbies & Crafts
Home & Garden
Money
News & Politics
Relationships
Religion & Spirituality
Sports
Travel & Culture
TV & Movies

dailyclick
Bored? Games!
Nutrition
Postcards
Take a Quiz
Rate My Photo

new
Painting
Heart Disease
Horror Literature
Dating
Hiking & Backpacking
SF/Fantasy Books
Healthy Foods


dailyclick
All times in EST

Full Schedule
g
g Unemployment Site

BellaOnline's Unemployment Editor

g

Education, Income, and Unemployment

Guest Author - Susan Joyce

PBS investment advisor and author Jonathan Pond says one of your best investments is in your career, and what he is really recommending is education. Education level is one of the major factors determining lifetime earnings because it impacts the available career options, job levels and salary, and even employment vs. unemployment.

Educational levels have been increasing throughout the 20th and into the 21st century. In 1940, only 25% of Amercans over 25 had a high school education or more, and only 5% had completed 4 or more years of college. By 2000, over 80% of Americans over 25 had completed high school (or more) and over 20% had completed 4 or more years of college. So, having a "higher education" (some college or better) has become less of a competitive advantage than it was in the past.

A high school diploma is now a minimum requirement for many jobs, as reflected in the data below. Clearly, the more education, the better the salary, and the smaller the likelihood of unemployment.

Education Impacts Employment and Income

A study by the US Census Bureau in 1999 shows the correlation between level of eduction and employment (vs. unemployment) and annual income. Professional degrees (medical doctors and lawyers, for example, both of which are technically doctorate degrees) have the highest payoffs in terms of both employment and income.

Full Time Employment       Education                    Annual Income

  83.6% w/full-time jobs       Professional degree               $109,600
  80.9% w/full-time jobs       Doctoral degree                      $89,400
  76.1% w/full-time jobs       Master's degree                      $62,300
  76.7% w/full-time jobs       Bachelor's degree                   $52,200
  74.9% w/full-time jobs       Associate's degree                  $38,200
  73.9% w/full-time jobs       Some college                          $36,800
  73.1% w/full-time jobs       High school graduate               $30,400
  65.3% w/full-time jobs       Not high school graduate:         $23,400

Education and Earnings Over a Lifetime
Multiplying this data over an average working life of 40 years, shows very impressive differences in lifetime earnings.

  Professional degree -        $4,384,000 in lifetime earnings
  Doctoral degree -             $3,576,000 in lifetime earnings
  Master's degree -             $2,492,000 in lifetime earnings
  Bachelor's degree -          $2,088,000 in lifetime earnings
  Associate's degree -         $1,528,000 in lifetime earnings
  Some college -                  $1,472,000 in lifetime earnings
  High school graduate -      $1,216,000 in lifetime earnings
  Not high school graduate - $936,000 in lifetime earnings

The average person with a Master's degree earns twice as much over a lifetime as the average person with a high school diploma ($2,492,000 vs. $1,216,000). Assuming that education costs $25,000/year and a Master's degree takes 2 years to earn, that additional $1,277,000 in income cost $150,000. No surprise - Jonathan is right - that's a VERY good investment!

Bottom Line

These are not hard and fast rules about what will absolutely happen. This is just data with my analysis. It should be correct, on average. You could be, or know, many people who are exceptions. Education is only one (very important!) predictor of employability and income earning ability.
Add Education%2C+Income%2C+and+Unemployment to Twitter Add Education%2C+Income%2C+and+Unemployment to Facebook Add Education%2C+Income%2C+and+Unemployment to MySpace Add Education%2C+Income%2C+and+Unemployment to Del.icio.us Digg Education%2C+Income%2C+and+Unemployment Add Education%2C+Income%2C+and+Unemployment to Yahoo My Web Add Education%2C+Income%2C+and+Unemployment to Google Bookmarks Add Education%2C+Income%2C+and+Unemployment to Stumbleupon Add Education%2C+Income%2C+and+Unemployment to Reddit




Career Coaching
RSS
Related Articles
Editor's Picks Articles
Top Ten Articles
Previous Features
Site Map


For FREE email updates, subscribe to the Unemployment Newsletter


Past Issues


print
Printer Friendly
bookmark
Bookmark
tell friend
Tell a Friend
forum
Forum
email
Email Editor


Content copyright © 2013 by Susan Joyce. All rights reserved.
This content was written by Susan Joyce. If you wish to use this content in any manner, you need written permission. Contact Corlia Logsdon for details.

g


g features
Becoming an Entrepreneur while Unemployed

Warning Signs of a Bad Workplace

Television on the Cheap

Archives | Site Map

forum
Forum
email
Contact

Past Issues
memberscenter


vote
Poetry
Daily
Weekly
Monthly
Less than Monthly



BellaOnline on Facebook
g


| About BellaOnline | Privacy Policy | Advertising | Become an Editor |
Website copyright © 2013 Minerva WebWorks LLC. All rights reserved.


BellaOnline Editor