How education affects income

The impact of education on income is undeniable. A survey of nearly 2,000 adults found that nearly two-thirds of those with a bachelor's degree or higher made more than $50,000 per year, while only 34 percent of those with a high school diploma earned that much money. Higher levels of education have been consistently associated with higher salaries, better job security and opportunities for professional advancement.

Not only does education increase an individual's earning potential, it can also dramatically change the trajectory of their career. According to the Bureau of Labor Statistics, people who have a bachelor's degree or higher typically earn almost double the amount of money that those who have only a high school diploma earn. People who have a master's degree are even more likely to be in higher paying positions; they report incomes up to 30 percent above the national average.

Education gives people valuable skills that will be useful in their careers. College degrees teach important principles such as communication and critical thinking skills, which employers value highly when deciding whom to hire and promote. Additionally, college often provides people with a much broader understanding of their field than they would gain through entry-level positions or on-the-job training. College learning can also provide people with specific certifications and licenses which can improve their income potential and job security.

Increasingly competitive job markets make education even more important for getting ahead financially. Employers today often require applicants to have at least some college experience before being considered for employment — this means that those without a degree are likely to find it difficult to get ahead in terms of salary or career progression, let alone enter certain industries altogether. Higher levels of education open doors for graduate programs, specialized degrees, professional networking possibilities and internal promotions within companies large and small — any of which can lead to significant additional earning potential over time through increased responsibility or promotions that usually come with more financial rewards.

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