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Learn It to Earn It: Study Links Education and Earnings

Thursday, May 18, 2017

The Center for Business and Economic Research (CBER) at Ball State University has released a report titled The Relationship Between Educational Attainment & Wages, and though its conclusions aren’t necessarily surprising they are well worth staying aware of.

The report says it is intended to clarify the relationship between educational attainment and wages in Indiana. The report cites a previous study that analyzed Indiana from 2000 to 2010, which found that “the more educated a county is, the more new job growth there will be, which leads to more overall job opportunities in the county.” Building on this, the new report analyzes top and bottom counties by education and by income. One of the findings is that “in 2014 five of the top 10 highest earning counties were also five of the top 10 counties with the most educated populations.”

Nathan Law, the study’s author, concludes that theoretical predictions, past research and current data for Indiana’s counties all demonstrate that there is indeed a positive relationship between educational attainment and higher wages. Of particular interest to economic development is the further suggestion that areas with well-educated populations are more enticing to employers, leading to further job creation.

To read the information brief, visit: http://projects.cberdata.org/reports/EduAndWage-20170308.pdf

Center for Business and Economic Research

Ball State University

http://cms.bsu.edu/academics/centersandinstitutes/bbr