The Multifaceted Returns to Education.

Overview & Synopsis

Trends in economics in the United States show a strong positive relationship between educational attainment and productivity growth. The earnings differential between those with more education and those with less education reflects the fact that education raises productivity rather than the fact that more productive students go on to pursue more education. Some trends include the following: (1) labor force participation rises with educational attainment; (2) more education translates into higher earnings; (3) the earnings gap has grown larger over time; (4) higher education means lower unemployment, more stable employment, and faster reemployment when dislocated--but education is no guarantee against being dislocated; (5) more education increases the chances of being covered by a pension and of having health insurance coverage; (6) more education translates into receiving more training; (7) lower levels of educational attainment translate into higher poverty rates and more dependence on public assistance; (8) those with higher education use technology on the job, engage in less criminal activity, are more active civic participants, volunteer in more charitable activities, have fewer children and better health; (9) with a more educated work force, business productivity increases and regional economies grow; and (10) new jobs in the future will require more education. (KC)