Revenue vs. Education in the U.S. and the United Kingdom

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4.0. Analysis and Results In this chapter, statistical results of the revenue vs. education in The USA and in The UK will be comparatively illustrated. The time period chosen lies between 2008 and 2013 (immediately after the effects of the financial crisis started to appear, and up until today); firstly, data will be presented via bar charts and statistical information, and will continue with a regression for each country which will illustrate the qualitative parameters of the chosen model, and will establish the amount of influence between the “education level” and “annual income” series. The fixed model (or the Ordinary Least Square approach) is the most suitable model for our datasets, according to the result of the Hausman test. 4.1. Education and income in USA 4.1.1. Statistic description of the data The annual income in The USA, per year and education degree, is illustrated in the following chart: Figure 1: Median annual wage in The USA for the 2008-2013 period Figure 2: Median annual wage evolution by education level in The USA for the 2008-2013 period. Figures 1 and 2 offer a view of the median annual wage distribution of the US population by year and then by education level. The graphic in Figure 1 shows an obvious increase of the income values for higher education levels (bachelor, master, PhD) which is in accordance to the theoretical assumptions of this research paper. When analysing the wage differences between the separate education levels in Figure 2 it can be noticed that in recent years the discrepancies are much lower than in the beginning of the period. These reduced discrepancies however are not caused by an increase in the lower education wages, but rather by a decrease of the earnings of individua... ... middle of paper ... ...on makes people more receptive towards the risks and hazards of such negative practices and urges them to take attitude towards more widespread wellbeing in society. With better awareness come better decisions and this is why in developing countries higher education is automatically reflected in more income. Nevertheless, conclusive results on the financial yields of education in the long term have yet to be conducted properly, as no study revealed a clear pattern between education and income for individuals or globally. This remains so far a blind spot of social research, as the inconsistencies between macroeconomic and microeconomic gains on education remain a strong impediment in assessing the role played by schooling in long-term financial wellbeing. The lack of data regarding these issues remains a significant impediment for studies such as this one.

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