It’s believe that education has a strong relation with income. I guess this is also one reason why we pushed our kids at least to get their bachelor degree (as my parents told me that I have to get more education than them, at least bachelor degree).
I am using data from IFLS wave 2 to 4 (year 1997, 2000, 2007) that is available online at RAND Website to reveals this hypothesis.
I am using the data from IFLS 2 (1997), IFLS 3 (2000), IFLS 4 (2007) to give you some idea of how education can affect your income. Please keep in mind that these graph are the median for all workers in year 1997, 2000 and 2007. In real life, earnings would likely to be even higher at that time depend on who are you asking for. If the business owner with only higher degree might even higher than doctoral degree workers.
In year 1997, 1) workers with less than a high school diploma only get less than half of earnings of high school diploma. 2) The difference between high school diploma and some college workers is not much, and 3) university degree holder earn more than twice as some college workers.
In year 2000, less than a high school diploma workers is still around half of the high school diploma workers. The difference between high school diploma with some college is about half of some college workers and there are only a slight difference between some college with bachelor degree workers. Master degree holder workers earn more than twice as bachelor degree holders.
Earnings in year 2007 follows the trend from 1997 and 2000. High school diploma worker earns 2 times as less than a high school diploma workers. Some college workers earn 50% more than high school diploma. The difference between some college and bachelor degree is not much. Master degree earn almost 2 times bachelor degree and doctoral degree earn 10% more than master degree.
This graph shows that is true that higher education (more likely) to earn more in term of average. Please keep in mind this..!
If you have any comments/stories please kindly share it in the comment box.