Educational Attainment: How Educational Attainment Affects Household Income

945 Words2 Pages

Apple Christie A. Ng
English 27 Andre Dominic
Educational attainment affects household income.
I. Introduction Education is the wise, hopeful and respectful cultivation of learning undertaken in the belief that all should have the chance to share in life (Smith, The encyclopaedia of informal education, 2015). Educational attainment for each individual demands critical attention to make their dreams and goals in life plausible. Educational attainment refers to the highest level of schooling that a certain individual has achieved. For some, educational attainment refers to the number of grades completed. But through the postsecondary level, it refers to the institutions attended, diplomas or degrees attained. This term paper analyzes …show more content…

Higher levels of educational attainment tend to be associated with higher wages (Aliprantis, 2011). In this standard world that we live in, education plays a vital role when it comes to better employment. When we say vital roles, what we mean is by how we get to achieve our goals in terms of both short term and long term. Education affects so many aspects of our live, more than we give it credit for. Aspects such as, family which is the basic foundation of every person. Education is the key to our future. As family income increases, educational attainment increases (Ismat, 2000). When a parent isn’t able to provide for his or her children’s holistic growth, it would affect the child’s future entirely, and a part of that holistic growth is his or her education. Another aspect when we say vital roles is the aspect of one’s employment. One’s employment determines the standard of living, and the standard of living determines not only one’s well-being but the well-being of one’s family. And that includes one’s children, better employment results to higher income. Thus, the more education you have, the more you are worth in the job market. A graduate of higher education faces a lower risk of unemployment, and has a greater access to further training opportunities and larger average …show more content…

Examined the relationship among family structure, parental practices and children’s achievement. It revealed that parental practices, including parental encouragement had positive effect on children’s school achievement (Ashtone & Sara, 1991). Based on the resource-based view (RBV) of the firm, Wright and McMahan (1992) and Wright et al. (1994) show that human capital is valuable, rare, inimitable and non-substitutable (Sujchaphong, 2013). Human capital is essential to one’s holistic growth, especially to the outcome of educational attainment. Human capital is a collection of resources- all the knowledge, talents, skills, abilities, experience, intelligence, training, judgment and wisdom possessed by an individual and collectively by individuals in a population. These resources are the total capacity of the people that represent a form of wealth. From the study by Takeuchi, Lepak, Wang, and Takeuchi (2007), collective human capital was the mediator between high performance work systems (HPWSs) and firm performance (Sujchaphong, 2013). According to (Schwab, 2015) “A nation’s human capital endowment- the skills and capacities that reside in people and that are put to productive use- can be a more important determinant of its long term economic success than virtually any other resource. This resource must be invested in and leveraged efficiently in

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