economic benefits of education

8/12/2019 economic benefits of education

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Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th

, 2014, pg. 1

Assignment 4Economic Benefits of Education


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, 2014, pg. 2

Introduction:

Knowledge is power and therefore learning is the most important which a person can

possess in this world. Knowledge not only enables individuals to reap its benefits but it is

also very beneficial to the society as well as the country. This paper discusses the

economic benefits of knowledge for the individuals, society and country.

The Benefits of Education for the Individual:

Education is one of the most lethal weapon in the modern day. Education not only

increases the awareness of the person about what is right and what is wrong but it also

enables him to increase standard of living as well as increasing his self-confidence.

People with higher level of education are less likely to have problem in obtaining jobs,

regardless of their gender, ethnicity and race. According to the report published in 2007

by US bureau of labor statistics the unemployment rate of people graduated from college

is only 2.4% which is almost the half when compared to the high school graduates (5.2%)

and less than one third the rate of high school dropouts (8.5%) [1]. People having

professional degree are more likely to work for an employer that offer pension plan

(69%) and are more likely to participate in pension plan(89%). Furthermore, these people

are more likely to have been provided with health insurance from their employers

[2].Another important personal benefit which reaped by the individual who have higher

education level is that these people live nine years more compared to the dropouts and

these people are less vulnerable to diabetes, cancer, lung disease, cardiovascular disease

and other type of infections. Higher level of education is related with improved health


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across all ages and earnings [2].Other personal benefits which can individual can achieve

through better and higher education is to have better employee benefit packages, longer

vacations and better work conditions.

The Benefits of Education for Society as a Whole:

Individuals receive better economic benefits in terms of more lifetime income due to

better and high education but it isnt these individual who benefit from these gains but the

whole society gains from it. These individual will be more likely to have higher incomes

and are more likely to pay more taxes. Similarly, they will also be having better health

which again benefits the society and these individuals are also more likely to depend on

government social schemes and they will probably get more engaged in civic activities.

People with education are more likely to have job which provides them with health

insurance as well as retirement benefits. This will result them to have access to better

health care services which in turn will lead to longer and healthier lives. These healthier

lives thereafter lead to decrease in public spending on these people, therefore reducing

the government costs. Hence education not only brings with itself important and

significant benefits to the society by providing greater employment opportunities but it

also increases the income of the people because of their superior and enhanced skills and

better social status.


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The Impact of Education on the Economic Conditions of a Country:

Every country can benefit from a good educational system. In many countries with

additional year of schooling people earn 10% higher wages, which in turn contribute to

national economic growth. Education helps in the political stability of a country, because

educated people handle political matters through critical thinking, which adds as strength

for the country. It helps in the growth of the civil society; it allows people to learn more

about their rights and their duties and then exercise it accordingly which results in an

educated population of a country. Dee (2004) and Milliganet al(2004) estimate that an

additional year of schooling increases voter registration and voting in the US, with

impacts typically ranging from 30% to 40% [3]. Educated people elect officials who are

educated enough to plan ahead. A country prospers this way, because the laws then will

be wise and government incompetence and public corruption is better dealt. Educated

citizens practice more reasonable citizenry.

Conclusion:

Education is not only benefits individual but it also has significant benefits for the society

as well as for the country. A knowledgeable person is not only a self-dependent but is

also an asset to a society as well as the country.


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References

1.

Bureau of Labor Statistics. (2007, July).Labor Force Population from the current

Population Survey. Retrieved from http://data.bls.gov/timeseries/LNS14000000

2. College Board. (2007).Education Pays: The benefits of higher education for

individuals and society. Retrieved from

http://www.collegeboard.com/prod_downloads/about/news_info/trends/ed_pays_

2007.pdf

3. Milligan, Kevin, Enrico Moretti, and Philip Oreopoulos (2004).Does Education

Improve Citizenship? Evidence from the United States and the United

Kingdom,Journal of Public Economics, 88(9-10):1667-1695.

4. Institute for Higher Education Policy, Washington, and D.C. The Broader

Societal Benefits of Higher Education. Retrieved from

http://jcu.edu/academic/planassess/planning/files/Planning%20articles/Broader%2

0Social%20Benefits.pdf
http://www.collegeboard.com/prod_downloads/about/news_info/trends/ed_pays_2007.pdfhttp://www.collegeboard.com/prod_downloads/about/news_info/trends/ed_pays_2007.pdfhttp://www.collegeboard.com/prod_downloads/about/news_info/trends/ed_pays_2007.pdfhttp://www.collegeboard.com/prod_downloads/about/news_info/trends/ed_pays_2007.pdf


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Paper 4 Rubric

Total 100 points

Criteria Unacceptable Acceptable Proficient Student Points

and Comments

Discusses the

benefits of an

education for the

individual.

Vaguely discusses

the benefits of an

education for the

individual or

completely off the

topic.

(0-11 points)

Discusses the

benefits of an

education for the

individual and, for

the most part,

fulfills assignment

requirements.

(12-13 points)

Discusses the

benefits of an

education for the

individual and

demonstrates solid

ability to

accomplish the

assignment.

(14-15 points)

Discusses the

benefits of an

education forsociety as a whole.

Vaguely the

benefits of an

education forsociety as a whole

or completely off

the topic.

(0-11 points)

Discusses the

benefits of an


and, for the most

part, fulfills

assignment

requirements.

(12-13 points)

Discusses the

benefits of an


and demonstrates

solid ability to

accomplish the

assignment.

(14-15 points)

Discusses the

impact of

education on the

economic

conditions of a

society.

Vaguely discusses

the impact of

education on the

economic

conditions of a

society or

completely off the

topic.

Discusses the

impact of

education on the

economic

conditions of a

society and, for the

most part, fulfills

assignment

Discusses the

impact of

education on the

economic

conditions of a

society and

demonstrates solid

ability to

accomplish the


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, 2014, pg. 7

(0-19 points)

requirements.

(20-22 points)

assignment.

(23-25 points)

Integratesestablished

managerial

economics

principles into the

discussion.

Rarely integratesestablished

managerial

economics

principles into the

discussion.

(0-11 points)

For the most part,does a good job of

integrating

established

managerial

economics

principles into the

discussion.

(12-13 points)

Consistently does agood job of

integrating

established

managerial

economics

principles into the

discussion.

(14-15 points)

Synthesizes

relevant

information and

materials to

provide evidence

of critical thought.

Synthesizes

information at a

minimal level.

(0-7 points)

For the most part,

effectively

synthesizes

information, which

supports main

ideas.

(8 points)

Consistently and

effectively

synthesizes

information, which

provides strong

support to main

ideas.

(9-10 points)

Uses supporting

documentation

that has been

properly

references and

cited.

Inadequate or

minimal use of

supporting

documentation or

not properly

referenced or

cited.

(0-3 points)

For the most part,

uses supporting

documentation

that is properly

referenced and

cited.

(4 points)

Consistently uses

supporting

documentation

that is properly

referenced and

cited.

(5 points)


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, 2014, pg. 8

Considered

holistically,

demonstrates the

ability to write at

the graduate level.

Considered

holistically, the

student

demonstrates an

inadequate ability

to write at thegraduate level.

(0-11 points)

Considered

holistically, the

student

demonstrates an

acceptable ability

to write at thegraduate level.

(12-13 points)

Considered

holistically, the

student

demonstrates a

proficient ability to

write at thegraduate level.

(14-15 points)

SubTotal Points =

Turnitin.com Did not turn paper

into Turnitin.com

Minus 10 points

---- ----

Revisions based on

the originality

Report.

Did not revise

paper based on the

originality report

Minus 10 points

---- ----

Total Points

economic benefits of education

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