The direct and indirect effect of education length to employment and job satisfaction. The value of education has traditionally focused on the contribution of formal schooling to increased earning capacity in the labor market.
The benefits of education promote not only higher wages but also expands the workers’ welfare possibilities. The basic idea is that longer schooling promotes a more efficient use of information both on the formation of expectations and on individual choices regarding the labor market.
The highly educated people are thought to pursue their aspirations more efficiently than poorly educated people do, consequently, they are more likely to gain additional education enhanced benefits in terms of personal utility arising from a variety of work related sources.
These may include performing more interesting or challenging tasks, holding a responsibility level matched to one’s qualification, working under healthier or more attractive conditions, developing good relationships with co-workers, taking on a tenured position, or enjoying greater work autonomy or higher social prestige. Education also does increase people’s well being and quality of life.
Studies also show that the well educated employees have a higher risk of becoming unemployed and that unemployed with qualifications have higher probabilities of regaining employment than the unemployed without educational qualifications.
So, education is an investment for your future. You already know that your base salary is largely determined by your education level.
But did you ever wonder exactly how much education matters? If you’ve got enough smarts, it shouldn’t matter whether or not you have formal training. As job scarcity continues to drive more competition to open positions, professionals with strong educational backgrounds are the ones scoring high paying jobs. Depending on the industry, pay increase may go as high as 300%.