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We all know education is important for our lives.
And here's proof you'll make more money. This official report shows that education pays off, especially in long run. In 40 years, see how much more you'll make. Check it out.
Education Impacts Work-Life Earnings 5x More Than Other Demographic Factors, Census Bureau Reports
According to a new U.S. Census Bureau study, education levels had more effect on earnings over a 40-year span in the workforce than any other factor, such as gender, race and Hispanic origin.
Many factors, such as race and Hispanic origin, gender, citizenship, English-speaking ability and geographic location do influence work-life earnings.
But none had as much impact as education.
The estimated impact on annual earnings between a professional degree and an eighth grade education was about $72,000 a year, roughly 5 times the impact of gender, which was $13,000.
These findings come from the report Education and Synthetic Work-Life Earnings, which looks at the economic value of educational attainment by estimating the amount of money that people might earn over the course of a 40-year work-life given their level of education. The report also looks at the effect of other factors, such as race and gender groups and other characteristics with regard to this relationship.
“This analysis shows that there is a clear and well-defined relationship between education and earnings,” said Tiffany Julian, an analyst in the Census Bureau’s Housing and Household Economic Statistics Division. “The overall economic value of educational attainment in this report supports the belief that higher levels of education are well-established paths to better jobs and higher earnings.”
Overall, white males had higher earnings than any other group at every education level, with the exception of those with a master’s degree, which was topped by Asian males, and those with a professional degree, where Asian males were not significantly different from white males.
In general, women in the most economically advantaged race groups usually earn less than men in the most disadvantaged race groups. For example, a white female with master’s degree is expected to earn $2.4 million over a 40-year work-life. In comparison, a Hispanic male with a master’s degree is expected to earn $2.8 million.
For Asian, black and Hispanic groups whose highest education completed is high school, the difference between each group’s work-life earnings was not large compared with the differences between these groups when they had higher levels of education. Asian men and women with a bachelor’s degree or higher had greater returns on higher education than blacks or Hispanics of either gender. For example, an Asian female with a professional degree made $3.7 million in work-life earnings compared with $2.3 million for a Hispanic female with a professional degree.
Naturalized citizens saw a small yearly increase in earnings over the native-born population ($1,210), but those who were not citizens made $2,446 less a year than the native-born.
Language spoken at home had an effect on earnings: those who spoke a language at home other than English saw a decrease in annual earnings after considering all other factors. Even those who speak English “very well” saw a decrease of $989 in annual earnings compared with English-only speakers.
See more at http://www.census.gov/prod/2011pubs/acs-14.pdf.