The key to having a good life is employment; having a good, well paying job. It is the job of the government, whether it is your state government or the federal government, to create and provide the jobs needed to earn higher pay. However, how can a person obtain a good, high, well paying job once they are created? Having and obtaining a good education is the important factor. Correlations, equations, and statistics have shown the more education you have the more money you’ll make. Thus, the creation of jobs by the government that pay substantially well, allowing persons to have an opportunity to a high standard of living, along with possessing the education needed to perform the duties required of these jobs, are the two factors that will lead to economic prosperity and someone living a successful life.
Trade and productivity are the basis to job creation. People desire, need, and want different things. In order to obtain these goods, the market including people must create these goods or products out of the supply of labor, capital goods or resources, and natural resources. This is called work or employment. Employment is important because people need and want to live well and they need certain goods and services to do so. Making money is the byproduct of employment and allows a person to buy the things they desire, need, and want. In addition, money is the compensation a person receives for creating a good or product for someone else. The more money a person has, the higher their standard of living is and the ability to buy the goods they desire, need, and want increases.
Jobs come from or are created by either the public sector, government oriented jobs like police, military, public education, and health care, or the private sector, also referred to as the business sector, which includes the jobs not originating from the government but by private investors and entrepreneurs. The voluntary sector is another job sector consisting of charitable organizations. The private sector contains most of the jobs, comprising of almost 80 percent of the total jobs in the market. However, education still plays an important factor in the types of jobs and pay you’ll receive in both sectors.
Jobs are being created requiring varying degrees of education. Jobs that require just a high school education do not pay as much as jobs requiring a college degree because they typically do not require as much skill to perform. Skill level requirements are usually lower. Typically, jobs that require a great deal of education require more out of their workers, higher skill sets in various ways and degrees, allowing for an increase in the amount of pay.
Statistics show between 1979 and 2012, states having a higher percentage of adults with college degrees experienced greater increases in productivity, measured as a gross state product per hour worked. As a person’s education increases, their skill and productivity level increases. This signals to employers they are hard workers, able to get the job done, completing a variety of different tasks when asked to do so, which equate to responsibility. Productivity is directly linked to increases in income. Thus, these states also experienced large increases in median worker compensation. As a result, the ability to complete a variety of different tasks when ask to do so, can lead someone to a good paying job that requires that certain skill set for success. Hence, there is a link, correlation, between increases in education, a high standard of living, and increases in income. States can play a role in increasing productivity, wage earnings, and standard of living for all of its citizens by investing in education. Investments in education may include states giving people incentives on attending college by keeping tuition low and increasing financial aid availability and eligibility. Also, states can promote the value of obtaining high levels of education through various programs and info sessions.
In addition, a well educated workforce does not only show gains for the individual, but states benefit economically as well. Statistics describe states with highly educated workers having substantially higher median wages than those states with less educated workforces. The best way to measure the economic prowess of a state is to measure the income levels of its citizens. The more money a person makes, the more money they’ll be able to spend. The connection between education and income, and economic potential is strong.
An increase supply of educated workers actually help creates its own demand. A higher-skilled labor force attracts employers with more skilled jobs. Labor supply increase labor demands by at least two-thirds the supply increase. States will do well by investing in education and helping its citizens obtain a good education. Education investments are good for the state budget in the long run because normally students graduating from state schools remain in the state, pay more taxes due to higher wages, are better employed and better trained, and have better jobs. There are many benefits for the individual and the state by investing in education. A person can obtain a good life if their state and government are creating the high paying jobs needed to sustain that life, and if the person is willing to invest in the education needed to perform the duties of the high wage paying job.
http://www.bls.gov/emp/ep_chart_001.htm - U.S. Dept of Labor Bureau of Labor Statistics: Employment projections and earnings and unemployment rates by educational attainment
http://usgovinfo.about.com/od/moneymatters/a/edandearnings.htm - Link to website About.com on article discussing income earnings increasing with a college degree
http://www.epi.org/ - Link to the Economic Policy Institute
http://www.gsb.stanford.edu/news/bmag/sbsm1201/spence_jobs.html - "Where will new U.S. jobs come from, Stanford Graduate School of Business