The Effects Of Educational Attainment On Salaries For Post-Secondary Degree Holders

The Effects Of Educational Attainment On Salaries For Post-Secondary Degree Holders

No matter what you think, the education is the essential part of every society. The base of everything is placed in elementary school. The way your citizens will act in the future lays down in elementary education and education in general. If your student respects his teacher, it means it is going to respect his authority later and his boss at work. You are not just teaching them to learn, but to behave too. As a former educator, I was monitoring the entire system. How Post-Secondary Degree can affect the lives of the ones that have attained a degree in higher education.

EducationAs a retired educator and has spent the great majority of my career in higher education I am always curious about how post-secondary education affects the lives of those who have attained a degree in higher education. A few days ago I learned about “NSF SESTAT 2008 National Survey of Recent College Graduates Public Use File”, a comprehensive and integrated system of information about the employment, educational and demographic characteristics of individuals with post-secondary degrees with a focus on scientists and engineers in the United States.

One of the major outcomes of attaining a postsecondary degree is its impact on socio-economic status, namely salary. With the SESTAT database in hand, I examined salary outcomes, controlling for some covariates.

 Variables

It should be noted that I restricted the analysis to exclude individuals who responded that they were not in the labor force.

The purpose of this study is to assess each of the above covariate’s influence on the dependent variable, salary.

Model Specification and Findings

Highest-Attained-DegreeThe following multiple regression equations were specified, producing the results described in this section:

Please see Appendix A for the multiple regression outputs.

The model explains 46 percent of the variance in salary for degree holders (Prob> F = 0.0000) in the labor force. All of the covariates are statistically significant.

In the following section, I provide graphs for each covariate effect on predicted salary, controlling for all the other covariates. In each case, I plot the predictive margins against age distribution on the horizontal axis.

Highest Attained Degree – ‘DGRDG’

Individuals who attain a doctorate or professional degree can expect a higher predicted salary, holding all other variables constant.  Master degree, doctorate and professional degree holders are predicted to make $8,428, $16,144 and $19,328, respectively, more than individuals with the baccalaureate degree as their highest degree.