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How does education affect economic status?

Updated: 8/19/2019
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13y ago

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Studies have shown that there is a inverse correlation between educational level and unemployment rate. For example, in 1992 (yes, that was a long time ago) the rate of unemployment for high schools drop out were at least 12% while the same rate for Masters and Dotoral degree earners were only 2%.

In addition, as the educational level you get improves, employers are more willing to pay a higher price (wage) to buy your skills and thus, improving your economic status.

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