Comparing people income with college degrees and people without college degrees - Research Paper Example

Comparing incomes: People with college degrees and people without college degrees Background information Information exists to support a relationshipbetween level of education and income. Abdelbaki’s study established that the academic qualification of a house head is a determinant of the level of income of that household. The findings imply that level of education of a house head also influence factors to income of other members of a household. A relationship between income inequality and disparity in level of education, as evident in Bahrain, and trend in widening inequality in the two quantities indicate that education affect income that further affect ability to afford education (Abdelbaki 675-683).

Carmel, Stanley, Nolan, and Young support this observation and identify a positive correlation between education level and income among individuals (67-77). While Sedat acknowledges a similar relationship between the variables, his study did not identify a significant relationship (62-72), a position that Lin, Gao, Zhuang, and Chen reiterate (n.p.). Wells however identifies a significant relationship between education level and income with economic independence (13-21) and the study seeks to ascertain validity of the proposed relationship.

Summary of methodologyAcademic qualification is one of the determinants in employment and dictates people’s positions. This suggests a relationship with income that also varies with type of job and an individual’s position in an organization. The study proposes to ascertain significance of proposed relationship between education level, whether a person has a degree or not, and level of income. The study will use data from Infoplease to obtain average income for a person with a degree across years and average income for a person without a degree across respective years.

Test of hypothesis for difference between means will then be used to determine existence difference between the two secondary means and a significant difference would mean that education level affect income.Works citedAbdelbaki, Hisham. “An analysis of income inequality and education inequality in Bahrain.” Modern Economy 3.5 (2012): 675-685.Carmel, Saad, et al. “The relationship between education and ethnic minority factors in income among Asian Americans.” Asian American Journal of Psychology 3.2 (2012): 66-78.

Lin, Jing, et al. “Exploring correlation between education level, income level, and job satisfaction in Gippsland.” Agribusiness Gippsland. N.d. Web. August 21, 2013. < http://agribusinessgippsland.com.au/doc/AGIUoM_Report.pdf >.Sedat, Gumus. “Investigating the relationship between the quality of education and level of educational attainment in Turkish provinces.” International Journal of Education Reform 21.1 (2012): 62-72.Wells, Ryan. “Education’s effect on income inequality: A further look.

” California Centre for Population Research. N.d. Web. August 21, 2013. < http://www.ccpr.ucla.edu/publications/conference-proceedings/CP-05-054.pdf >. Appendix: Data on median annual income by level of education Median Annual Income, by Level of Education, 1990–2010Sex & YearElementary/SecondaryCollegeLess than9th grade9th to 12thgrade, nocompletion1High schoolcompletion (includesequivalency)2Some college,no degree3Associatedegree4BachelorsDegree5MastersDegree4Professional Degree4Doctorate4Men         1990$17,394$20,902$26,653$31,734—$39,328———199117,62321,40226,77931,663$33,81740,906$49,734$73,996$57,187199217,29421,27427,28032,103$33,43341,355$49,973$76,220$57,418199316,86321,75227,37032,07733,69042,75751,86780,54963,149199417,53222,04828,03732,27935,79443,66353,50075,00961,921199518,35422,18529,51033,88335,20145,26655,21679,66765,336199617,96222,71730,70934,84537,13145,84660,50885,96371,227199719,29124,72631,21535,94538,02248,61661,69085,01176,234199819,38023,95831,47736,93440,27451,40562,24494,73775,078199920,42925,03533,18439,22141,63852,98566,243100,00081,687200020,78925,09534,30340,33741,95256,33468,32299,41180,250200121,36126,20934,72341,04542,77655,92970,899100,00086,965200220,91925,90333,20640,85142,85656,07767,281100,00083,305200321,21726,46835,41241,34842,87156,50270,640100,00087,131200421,65926,27735,72541,89544,40457,22071,530100,00082,401200622,71027,65037,03043,83047,07060,91075,430100,000*100,000*200827,96433,43543,16550,35954,86182,19799,516166,065129,773200923,000—32,90039,00042,00051,00070,000——201024,00029,00040,00046,00050,00064,00081,000115,000101,000Women         1990$12,251$14,429$18,319$22,227—$28,017———199112,06614,45518,83622,143$25,00028,079$34,949$46,742$43,303199212,95814,55919,42723,157$25,62430,326$36,037$46,257$45,790199312,41515,38619,96323,05625,88331,19738,61250,21147,248199412,43015,13320,37323,51425,94031,74139,45750,61551,119199513,57715,82520,46323,99727,31132,05140,26350,00048,141199614,41416,95321,17525,16728,08333,52541,90157,62456,267199714,16116,69722,06726,33528,81235,37944,94961,05153,037199814,46716,48222,78027,42029,92436,55945,28357,56557,796199915,09817,01523,06127,75730,91937,99348,09759,90460,079200015,97817,91924,97028,69731,07140,41550,13958,95757,081200116,69119,15625,30330,41832,15340,99450,66961,74862,123200216,51019,30725,18229,40031,62540,85348,89057,01865,715200316,90718,93826,07430,14232,25341,32750,16366,49167,214200417,02319,16226,02930,81633,48141,68151,31675,03668,875200618,13020,13026,74031,95035,16045,41052,44076,24070,520200821,34621,93731,53335,88839,94854,20465,039100,16783,762200919,000—25,00029,30031,00040,10054,000——201018,00021,00030,00033,00038,00047,00059,00077,00077,000Data from: http://www.

infoplease.com/ipa/A0883617.html