Ask a question from expert

Ask now

Economics and Quantitative Analysis of Wage and Education

8 Pages1665 Words155 Views
   

Added on  2020-05-28

Economics and Quantitative Analysis of Wage and Education

   Added on 2020-05-28

BookmarkShareRelated Documents
Running head: ECONOMICS AND QUANTITATIVE ANALYSISEconomics and quantitative analysisName of the studentName of the universityAuthor’s note
Economics and Quantitative Analysis of Wage and Education_1
ECONOMICS AND QUANTITATIVE ANALYSIS1Table of ContentsPurpose............................................................................................................................................2Background......................................................................................................................................2Method.............................................................................................................................................2Results..............................................................................................................................................3A...................................................................................................................................................3B...................................................................................................................................................4C...................................................................................................................................................4Discussion........................................................................................................................................6Recommendation.............................................................................................................................6References........................................................................................................................................7
Economics and Quantitative Analysis of Wage and Education_2
ECONOMICS AND QUANTITATIVE ANALYSIS2PurposeThe present report assesses the relationship between wage (hourly earnings) and numberof years of education. The objective of the study is how well does the number of years ofeducation impact wage of a person. The association between the two variables is necessary fromeconomic point of view. BackgroundEducation and wage have a causal relationship. In the modern society the wellbeing of aperson is dependent not only capital and labour but also on the level of education. The attainmentof education has been found to be positively associated with healthy lifestyles (Michalos 2017).A higher level of education symbolizes secure jobs with high pay and benefits. With theattainment of right level of education and proper training a person may have a higher wage.However, if proper training is not provided to the person then even with higher level ofeducation a person may not derive benefits (Lee and Sabharwal 2016). Wage differences exist in our society (Leuze and Strauß 2014). Wage differences are notonly based on the level of education but also gender. Gender inequality in wages can beattributed to gender stereotyped enrolment in academic subjects. According to research higherpercentage of women attain education in social sciences, humanities and education, whilesubjects like engineering and natural sciences are overrepresented by men (Ochsenfeld 2014).Thus by the choice of the subject of education differences in wages are created. Mismatch in wage and level of education is defined according to “assignment theory.”Underutilization or overutilization of skills creates wage disparity (Badillo-Amador and Vila2013). However, research shows that the attainment of skill is based on education and learningability of a person. Persons with same level of education may have different skill levels as aresult of learning ability, opportunity and demands of the present job (Pecoraro 2016). Thus,individuals with higher skill sets is bound to garner higher wage and vice versa. MethodTo assess the relationship between the two variables a random sample of 100observations was collected. Initially we examine the descriptive statistics of the variable. Wehave examined the central tendency, dispersion and spread of the collected sample data. Thesampled data is represented graphically to examine the rate of change of the variables. Theassociation between the variables is tested with the use of regression equation. The regressionequation is used to predict the hourly earnings of a person’s having 12 and 14 years of education.The rate of change in hourly earnings is also evaluated.
Economics and Quantitative Analysis of Wage and Education_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Association between Education and Earnings in Economics and Quantitative Analysis
|9
|2217
|315

Economics Assignment Requisite Histograms
|6
|481
|268

Analysis of a sample data of education level and its corresponding wages
|15
|2431
|413

Economics and Quantitative Analysis
|10
|1663
|425

The Assignment on Factors Creating Wage Difference in UK
|57
|15651
|24

Economics and Quantitative Analysis: Research Report
|10
|1635
|193