Answer to Question #241248 in Macroeconomics for Koko

Question

Suppose the following were facts relating years of education to average annual income of individuals. Can you conclude that years of education cause income to increase?

Years of education​ Income
​​​0–10​$ 8,000
​​​11–12​15,000
​​​13–15​22,000
​​​16–18​30,000
​​​19–21​35,000
​​​22 and over​52,000

Answer 1

Solution:

Yes, we can conclude that years of education cause income to increase.

This is because, the more years an individual spends in education, the more skills and knowledge they get that can allow advance in their careers. Over the years, the earnings of those with a college degree or higher have risen steadily, while the wages of those with lower levels of education have remained the same or fallen. This is because most employers are looking for highly skilled employees who have spent more years in education in order to earn their degrees, masters, PhDs, and doctorate degrees.

A Ph.D. or doctorate holder who has spent a lot of years in education will definitely earn more income than a degree holder who has to spend lesser years in education.