Wage and Wage Earnings

White is using good sources, that she is respected in her field, and that this is a timely article. What about the conclusion she draws? The data she uses appears incontrovertible. She uses two graphs from the Georgetown study that are eye opening. The first, on rates of unemployment, shows that having a bachelor’s degree makes you less likely to be unemployed than all workers by two percent, and 4% less likely than a high school graduate with experience. The second graph, demonstrating earnings by education, vividly shows how much more you earn with more education. Recent college grads enter the market at slightly higher wages than experienced non-degree holders, but the experienced non-degree holders top out there, while the degree holders go up in yearly earnings with more education and experience (White). I can’t put it any better than Ms. White

Hypothesis is typically used in quantitative research only. Moreover, when a question poses an inquiry on the relationship between two variables, a hypothesis is a statement declarative in nature of the relationship between different variables (Pajares 2007). A researcher chooses whether to use a question or a hypothesis depending on the purpose of the research, its objectives, the methodology for the research and the preference of the audience to receive the research. A researcher must be able to interpret the final outcome with reference to the research questions or the hypothesis used (Pajares 2007). A research requires a minimum of two hypotheses namely a null and an alternative hypothesis.

New service industry jobs require enhanced skills and proficiencies, many demanding successful applicants to possess college degrees and other certifications. According to the OOH “Education is essential in getting a high–paying job.” The BLS states that “Education is an important determinant of labor market outcomes. The more education a person has, the more likely he or she is to be in the labor force and the less likely he or she is to be unemployed.” According to the text, a person’s capacity to earn more can be directly related to their level of education.

This research paper will be addressing minimum wage and the comparison and correlation of it from when it was first instituted through the Fair Labor Act of 1938 to now in 2015. This paper will also go into the inequality of pay concerning women as well. Some factors that I’m focusing on are instances that have affected minimum wage, firstly the affect that unions had in guaranteeing the continuing rise of minimum wage along with inflation until it began to stagnate in the 1970s, which seemed to happen in correlation with the decline of companies encouraging unions; and, secondly what has happened to the work force as a result of women transitioning from free home and domestic work to paid jobs in the market place in such great numbers.

Moreover, employers featured in the survey claimed that academic results of a graduate is not an effective indicator of his or her competencies in the job when compared to work experience performance(Highfliers Research Ltd,2012). Another report also revealed that neither GPA nor major of study was related to the salary level of graduates at the entry-level of employment, but only work experience resulted in obvious disparity in salary level(Gault et al,2000).

Leonhardt says “Americans with four ­year college degrees made 98 percent more an hour on average in 2013 than people without a degree.” According to the statistics of the past thirty years, he came to the conclusion that if there were more college graduates, the pay gap would shrink. The national income inequality has a lot to do with the American’s education level.

The direct effects of education on wages have been well documented, however there continues to remain unobservable factors correlated with education that can affect wages, such as the lack of equal opportunity in the access to education. Several

Low levels of postsecondary degree attainment are especially impactful from a micro and macro perspective. At the micro level, individuals who complete postsecondary credential are correlated with significantly higher wages and earnings. Community colleges

The text states there is a variation in the income of the individuals in the service sector and good-producing sector. The service sector on average makes less than the good-producing sector. The text states “ …annual average weekly earnings for full-time workers in goods-priducing sector was $958, compared to $854 for the services”. (Krahn, Hughes, & Graham, 95). This shows that there is a huge variation among the service sector and producing-good sector. Furthermore, job quality and wages vary by occupation. The text discusses occupations with high weekly earning including senior managers, professional business and finances, health and professors, workers in applied sciences and teacher and professors. Occupations earning low weekly earnings include occupations related in the service sector being chefs and servers, child care and home support workers. The article suggests the higher paid occupations receive higher wages as they bargain and demand full time work and the basis that their education is formal in comparison to their lower paid counterparts. Moreover, the text discusses job quality and wages vary by gender. The text determines that females on average earn less than their male counter parts. For example the text states “female teachers and professors earned 90.9 percent of weekly earning s of their male counterparts ($1250 and $1375 respectively)”. (Krahn, Hughes, & Graham, 94). This demonstrates that there is a huge wage gap among genders in the work force. The article discusses this female to male earnings ratio as it varies in groups and job types typically women work part time therefore their wage is dissimilar to their male peers. The text outlines the job qualities and wages that vary in industry, occupation and gender. There are many things to take into account when varying among these niches, components such as education level, ability to

Our question is, “Does the level of education you receive affect the amount of income you will earn?” Currently, it is said that you need at least a college degree to earn a decent income. This question is often important because in todays society, the amount of money one makes is important to the quality in which one wishes to live. By looking at data we have found through our research it seems as if the higher your level of schooling, reaching anywhere from a high school diploma to a phD, generally leads to a higher average income. In an online article posted on dailyedventures, a close look is taken at five different segments which include, high school diploma or GED, high school diploma, training in vocational schools or associates degree, bachelors degree, and lastly a graduate degree, and specific occupations within those segments. The lowest reported salary came from the first segment, high school diploma or GED. At an average income of only $17,700 a year were waiters/waitresses. The average income increased with the amount of school and the occupation in which you chose, yet this article proved just what we were looking to prove. At an average income of $166,400+ surgeons chimed in, proving that the longer you go to school, the more money you are likely to make. Another article looked at similar information, this time it was against the unemployment rates in the United States. In March 2014 the Bureau of Labor Statistics looked at the earnings and unemployment rate

The paper will analyze the differences between women and men salaries. The salaries are definitely higher for men than women in all age groups. Women with higher education will receive higher pay but not equal to men with the same years of experience due to gender, and education. The data statements that were found was that males work longer than females which may cause a lower percentage in salary for females, and that females do not negotiate salary as much as men. Another issue caused is that women in the workforce are less likely to work a full-time schedule, and leave the labor force for longer periods of time than men, which repress women’s wages. These differing work

This simple equation has drawn many research, studies and debate over the years. Much of the controversy focuses on the issue of variable bias. This simple equation violates one of the basic assumption of E(|S) ≠ 0. This leads to two major problems in equation above firstly in job market education has been regarded only signal to higher ability, which leads to more educated individual paid more; this might be because of the correlation of education and wage results from probably individual ability which affects both the variables. Although education does not increase one’s effectiveness but still much of research in past has focused on separating effect of education and unobserved ability by introducing plausible ability variables. Second major problem with equation above is that education is a choice variable, desired level of education depends upon number of other factors for all individuals, which leads to education being an endogenous variable.

This result is supported by many studies (Baum & Ford, 2004; Caliendo & Gehrsitz, 2016; Vincenzo, Noemi, & Daniela, 2008) and statistics that a degree will have more power and knowledge to receive more wages. Similarly, we found out different levels of occupation earn different wages as we see “managerial occupation” make 33% higher wages than other occupations under 1% level in all specifications, which is consistent with statistics in other studies that wages will increase over the period of a job promotion. Also, another interesting finding we found is that while a worker works more hours each week will earn 0.5% to 26% less as we see “Hours Worked per week” is negatively significant at 1% level, a part-time worker will also earn less than a full-time worker by 59% to 64% per hour. This may indicate wages start to decrease once work hours exceed a certain amount in each week, along with a decrease in productivity. However, this may require further research and hypothesis testing on the relationship between hours of work and productivity, which is beyond the scope of this study. Furthermore, as we considered health limitations in specification 3 regression, we found out that a worker does receive a wage

Strong hypotheses give insight into a research question and give a hint on what we will find when we answer the research question. A hypothesis gives therefore an a priori answer to the research question. Punch (1998) makes the following connection between hypothesis and research question: “A specific research question states what we are trying to find out. The hypothesis predicts, a priori, the answer to that question.” Punch (1998) suggest that we do not need a hypothesis in any case. It only makes sense when we have an explanation in mind behind the hypothesis. A further question we should ask is what answer we expect and why. If we expect a certain answer only because previous research has found it to be true, we do not need to propose a hypothesis. To summarize and find out whether a hypothesis is reasonable one can follow figure 1.

The following literature review gives a thorough account of the current research into the determination of wages. It was crucial for this project to study the current body of literature on this topic in order to decide on which approach was best to take. Sapsford et al. (1993) claim that “at the simplest level of analysis, wages, viewed as the price of labour, are seen as being straightforwardly determined by the intersection of labour demand and supply curves in the market for labour.” (Sapsford et al., p. 155) Thus on one side we have the demand for labour by the firm, and on the other we have the supply of labour by workers. In cases where the market is in perfect competition the wage is given so the firm must choose the amount of workers it wants to employ at that wage. But in such a market at equilibrium the price of labour, i.e. the wage, will be equal to the marginal productivity of the worker. However, in imperfect markets, there can be monopsony firms who have market power and can choose the wage and the amount of workers that will maximise their profits. This latter theory is one of the reasons that was given to explain Krueger’s findings that an increase in the minimum wage actually increased employment which obviously contradicts main economic theory. The main idea was that in the case of a monopsony, higher wages may induce the firm to employ more people so as to find the profit maximising level of workers given that wage. But this project will not focus on the