Summary
Education has a strong correlation with income, as shown by various studies and research. Articles, such as those that cite Deepak Hegde and Justin Tumlinson’s work on information frictions and entrepreneurship, reveal that education has a significant impact on income, ability, and international trade. In addition, education has implications for the economy, society, and overall education system. Studies also highlight the importance of using simultaneous equations to better gauge the relationship between education expenditures and income, as single-equation approaches can lead to large bias. Nonhuman wealth was found to have twice the impact on education expenditures, compared to other forms of wealth. Moreover, models that include variables like the Gini coefficient, per capita income, educational attainment, population density, and poverty rate can explain up to 72% of the variation in age-adjusted mortality among US states. The Gini coefficient, in particular, had a significant coefficient when income was controlled, but lost its relation when educational attainment was added to the model. Overall, multiple studies and research have shown that education plays a vital role in determining income levels and has a significant impact on individual and national economies, making investment in education an important priority for governments and individuals alike.
Consensus Meter
This study shows that single-equation approaches to examining the relationship between education expenditures and income can lead to large bias. This is due to the correlation between the independent and residual variables in the equation for income. Simultaneous equations can be used to better understand the relationship between the two variables, and it was found that nonhuman wealth has twice as much effect on education expenditures as other forms of wealth. Overall, this study demonstrates the importance of using simultaneous equations in order to get an accurate gauge of the relationship between education and income.
Published By:
GS Tolley, E Olson - Journal of Political Economy, 1971 - journals.uchicago.edu
Cited By:
57
This article reviews articles citing Deepak Hegde and Justin Tumlinson’s Information frictions and entrepreneurship. The articles include topics such as Charter Schools and Labor Market Outcomes, Controlling for Ability Using Test Scores, Envy Sensitivity on Twitter and Facebook Among Japanese Young Adults, Attenuation Bias in Measuring the Wage Impact of Immigration, Exploring Models of School Performance, and more. These articles provide insight into the economic, social, and educational implications of information frictions and entrepreneurship. They also provide evidence of the effects of education on income, ability, and international trade. The conclusion is that information frictions and entrepreneurship have a wide range of implications for the economy, society, and education. These implications can be explored further through the research discussed in this article.
Published By:
Z Griliches, WM Mason - Journal of political Economy, 1972 - journals.uchicago.edu
Cited By:
974
This paper looks at the effect of education on income inequality by conducting a meta-regression analysis of existing literature. The results show that education has a positive effect on both the top and bottom earners of the income distribution, particularly in Africa. Secondary schooling appears to have a stronger effect than primary schooling, although this is not always the case. The findings suggest that differences in econometric models and measures of inequality and education can explain the heterogeneity of reported estimates. In conclusion, education helps reduce inequality in income distribution and should be further promoted to reduce the gap between different social classes.
Published By:
A Abdullah, H Doucouliagos… - Journal of Economic …, 2015 - Wiley Online Library
Cited By:
248
This article investigates the relationship between social status (education and income) and fertility in the contemporary U.S. The published data on recent generations of Americans upon which such statements rest, however, are solid with respect to women but sparse and equivocal for men. Results show that increased education is strongly associated with delayed childbearing in both sexes and is also moderately associated with decreased completed or near-completed fertility. Women with higher adult income have fewer children, but this relationship does not hold within all educational groups. Higher-income men, however, do not have fewer children in the general population and in fact have lower childlessness rates. This study demonstrates that simple statements on the relationship between status and fertility do not always hold true. These findings suggest that the relationship between social status and fertility is complex, and further research is needed to explore this.
Published By:
J Weeden, MJ Abrams, MC Green, J Sabini - Human Nature, 2006 - Springer
Cited By:
102
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Published By:
J Morgan, M David - The Quarterly Journal of Economics, 1963 - academic.oup.com
Cited By:
166
<0.001. The first model contains the Gini coefficient and per capita income only. The R2 was 0.24, indicating that these two variables explain 24% of the variation in mortality among states. The second model adds the educational attainment variable to the equation and increases R2 to 0.51. Adding population density, the third model, further increases R2 to 0.58 while the fourth model, which includes the poverty rate, raises the R2 to 0.64. The fifth model, which includes all variables, has an R2 of 0.72, indicating that these five variables explain 72% of the variation in age adjusted mortality among US states. Fig 3. Percentage of variation in age adjusted mortality explained by five regression models for the 50 US states and the District of Columbia (DC), 1989-90 (Data sources US Public Health Service15 and US Census Bureau16 20 ) Download figure Open in new tab Download powerpoint The table shows the regression coefficients for the five models. The Gini coefficient had a significant coefficient when income was controlled for (model 1). This relation disappeared when educational attainment was added to the model (model 2). The fit of the regression significantly improved when education was added to the model (F (1,48)=66.6; P<0.001). All other variables had significant coefficients in all models. Discussion This study tested the hypothesis that the relation between income inequality and mortality found in US states is because of different levels of formal education. The results indicate that lack of high school education accounts for the income inequality effect and is a powerful predictor of mortality variation among US states. The income inequality effect disappears when educational attainment is added to a regression model that included per capita income as a measure of absolute deprivation. This finding indicates that lack of high school education may be a stronger predictor of mortality than absolute deprivation, at least among US states. This paper researched the association between income inequality, education, and mortality using data from all US states and the District of Columbia in 1989-90. It concluded that lack of high school education accounts for the income inequality effect and is a more powerful predictor of mortality variation among US states. Education is likely to extend life by providing economic resources, reducing occupational injuries, and influencing behaviour. It may also measure the lifetime cumulative effect of adverse socioeconomic conditions. This study highlights the importance of access to education as a public health intervention to reduce mortality disparities.
Published By:
A Muller - Bmj, 2002 - bmj.com
Cited By:
406
This paper discusses how education, income, and occupational class cannot be used interchangeably in social epidemiology. Empirical evidence from Sweden and Germany was analyzed to determine independent effects of each of these social factors on four health outcomes: diabetes prevalence, myocardial infarction incidence and mortality, and all cause mortality. It was concluded that each social dimension had an independent effect on each health outcome in both countries. Therefore, education, income, and occupational class measure different phenomena and tap into different causal mechanisms that should not be used interchangeably.
Published By:
S Geyer, Ö Hemström, R Peter… - Journal of Epidemiology & …, 2006 - jech.bmj.com
Cited By:
738