Effect of Education on Economy

1. What arguments is Marsh making about the relationship between inequality and education in the United States? How does he distinguish his position from other common arguments about the degree to which education, especially higher eduction, can or cannot serve as a panacea for social ills in this or other countries?

By the beginning of the second Millennium, many countries realized the need and necessity to cope up with the rest of the rapidly developing world. As they realized this necessity, they also realized that the key to growth and development is, indeed, education. As a result, many countries around the world entered the heated race of reforming their education systems hoping that this would ensure them a foothold in the modern world.

When the cost of labor is increased artificially by legislation instead of through market forces, companies will attempt to reduce their cost. When you pay someone more to work, the assumption is that they will have more disposable income and increased consumption will contribute to the economy as a whole. By increasing the cost of labor without an increase in productivity, market forces will cause a business to look for alternatives either through reduction in work force or by relocating jobs (offshoring). While those who are still employed will see an increase in pay, those lost their job will have no income and the government will lose the taxes associated with those jobs.

An increase in unemployment and product prices will occur because when the workers are paid more, businesses will have to raise the prices of their goods in order to still make profit. This may lead to inflation as well. Seeing the law of demand, when the prices increase, buyers will purchase less. This will cause the demand curve to shift to the right (Hubbard and Anthony 2015). If labor is more expensive employers will be forced to hire less workers. As for supply, higher prices of supplies will create a surplus in supply, causing the curve to shift to the right (Hubbard and Anthony 2015). The higher the wage, the higher the number of workers willing to work but the number of workers hired will be lower. This increase in unemployment can hurt the prices of goods and services and businesses will have to allocate more money for wage, which makes the charge more for their products. Raising the minimum wage can lead to many consequences, it can even lead to a decrease in economic

Today’s corporations are highly advanced in communication, operations, and productions. The need for highly educated people is in great demand for both white and blue collar workers. With the continuing evolution of technology, companies will need to train and educate their employees to upgrade their level of knowledge. This is being accomplished through company training or

According to data from the National Center for Educational Statistics, people with a college degree, on average, will earn significantly more over a lifetime than people without a degree. And the benefit increases with education beyond the baccalaureate. This relation of higher education and economic advancement has been

The recession has demonstrated the social and economic affects of higher education on society, with the recession having a greater, negative, affect on individuals who attained lower levels of education . The unemployment rate in 2009 was lower, with higher average wages, for people who did not drop out of school and was successful with higher education . This is suggesting that education, beyond GCSEs, has become “essential” for 21st century careers . This is supported by the inflation of examinations being taken , which is reducing “the relative economic value” of the qualification . This means for stronger financial development in a career, more education is required – as well as experience in the field to stand out against other candidates.

In this section, the importance of education is looked at. Highly educated individuals are becoming more and more important. “In 1980, across all 200 industry groups, there was 32% of the population that had some college and in 2000 there was 51% that had college education” (pg 7). All 200 industries had shown some increase in the percentage of people who had some college education and there was no decease in any of the industries. Overall, if a person wants a high paying job, they have to get a higher education. College has become almost necessary in order to get a job that pays an adequate amount. It is not necessary to go to college in order to make a living or become financially secure, but if a person wants to earn the

Unions often prevent more qualified workers from getting the jobs. Less skilful workers are often protected from layoffs or firing. Union contracts and

When the supply of labor is equal to the demand for labor, the labor market is in equilibrium at the intersection between the supply and demand curves. A rise in the money wage will decrease short-run aggregate supply and shift SRAS curve leftward while LRAS curve stay the same. The shift of SRAS curve will result in increase in labor supply while decrease the quantity of jobs. According to the macroeconomic model and basic supply and demand suggests that higher minimum wage will increase the unemployment rate, however many studies have found that increase in the minimum wage have had no measurable or negative effect on the employment and labor economy in the long

Training encourages the evolution of a culture of learning. The company that has developed a reputation of focusing on employee learning, and training will have the pool of the best people to choose from in their near future particularly of the younger

As an economics major, I spent a majority of my undergraduate career examining production functions, which are equations that estimate a level of output based on certain variables such as capital, labor, and technology. During my studies, I began to realize that education was a variable that almost always positively altered the level of output for any given person, business, or environment. The importance of education cannot be understated, therefore, I have the greatest appreciation for those who continue to invest in students like myself.

- Training is another factor that could reduce the unemployment rate of low skilled workers. Training, however, is mostly offered by employers and not by the government. Often training is also offered to the most skilled and educated workers opposed to low skilled workers. Furthermore, the amount of money spent on training by the government only entails 0,4% of the American GDP, whereas, it is more than 10 times as high for countries such as Denmark, Germany and the

There are many keys elements with training and development that will improve performance. Training is very important, it provides the opportunity for employees to expand their knowledge. When a new employee is hired they will required to participate in orientation program, which gives employees the job satisfaction and gives them the commitment of being with that organization at the beginning.

Whether you are an employer or a worker, job training can be a key component for improving your situation and making more money. For workers, you can be promoted into a better position, with a higher salary and more responsibility. Or if you’re still job-hunting, getting trained for new skills can make you much more marketable.