How Education Affects Income

Education is a significant factor in evolution of the mankind. The practice of imparting education is an age-old phenomenon, and as a discipline, it has evolved based on the needs of the mankind. In ancient times, imparting education involved the art of making weapons, poaching of animals, understanding sign languages, and all other factors essential for survival. During the medieval period, it was archery, horse riding, and war techniques. Nowadays, education is not only constrained to survival, but has become a tool in order to stay relevant. The purpose of acquiring education is also to be employable and earn a regular income.

Education Affects Income

With the industrial revolution and technological advancements, the appetite of consumers has increased significantly. The demand for a comfortable and an opulent lifestyle has led to an increase in consumption of goods and services manufactured and offered using a cutting-edge technology. That's why costs of consumables and services are exponentially high. Manufacturing of such commodities requires a great deal of skill and dexterity, which can only be imparted with a high-quality education. And in order to purchase those commodities, it requires a huge amount of money, as individuals at a high income level are the only ones who can afford the same. Therefore, increase in manufacturing and consumption of these commodities implies that the level of education and income has grown on the same trajectory.

Illiteracy is a vicious cycle that leads you astray from the path of development, and drags you into poverty and misery. People that attain dismal quality of education or no education at all, are devoid of essential skills to earn their livelihood. With poor skills, the likelihood of a person getting employed and earning a high income is very low. And if such is the case, the descendants of the person suffer the same fate since a person born in a poor environment is generally deprived of the basic amenities that are instrumental in the overall development. Consequently, the demon of poverty never ceases to exist in their case. Whereas if you compile the data of nations that have high-level of literacy, you can see their per capita income is also higher.

A. Hamilton's study points out that the earnings of those with a college degree have grown substantially, while the with just high school education or college dropouts have a stagnated income. There are reports of rising unemployment and loss of jobs as artificial intelligence, automation and other technological advancements have led to the replacement of hands by machine. The wage gap between those who are graduates and pose quality skills, and those who are bereft of it, is rapidly increasing. If the quality of education doesn't run in tandem with the technological advancements, there is no way in which this predicament can be mitigated. Thus, it is imperative on the government's part to empower their citizens with necessary skills, and have a significant amount of budgetary allocation for educational programs, as well as have subsidized education for the people in low income band.

Given the following nuances, education can yield a high level of income. It can be a vital tool for those who are deprived, and struggle to meet their ends. It can be a mediator in reducing the income gap that persists, and to address the problem of income inequality that has plagued many countries. However, along with education, a good resumes is also essential to earn a job one wish to do.