How Socio Demographic Factors Influence Income

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Summative Report 2
Research Question: How do socio demographic factors influence income in the UK?
Introduction
Socio demographic factors are factors such as age, sex, ethnicity, religion,which affect society and are present in statistics. These factors have a significant effect on income because a person with a university degree is able to increase their income as they may look for more specialized jobs in relevance to their degree thus allowing them to generate higher levels of income in comparison to somebody who has a lower education level for example GCSE’s who would look for jobs in line with their current qualifications. In order for me to analyse how socio demographic factors affect income I have chosen to look at 3 independent variables; Education, Gender and Religion to see the level of statistical significance in relation to income. In terms of a previous literature I have reviewed different types of literature in order to understand the relationship of these independent variables to income and have looked at the Theory of human Capital in regards to education by Becker (2009), theories that discuss the gender pay gap, and also Max Weber’s renowned book of The Protestant Ethic and the Spirit of Capitalism which examines the effect of religiosity in increasing levels of income amongst Protestants. After exploring this literature I will carry out Analysis of Variance and Regression; both linear and multiple to see how much of an impact the variables of Education,
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