Question: What are the economic benefits associated with higher education qualification attainment and how these benefits can vary according to the subject of study , gender and prior qualification attainment
The study analyses the importance of a highly qualified degree. It is a universal belief that a student with a higher degree earns more than a student possessing a lesser degree. This is because of the fact that most organisations look to employ people with good knowledge. However, skilful workers are also required for increasing the economy of an organisation as well as the country. The chances of getting a good job and supporting the family are more for a well-qualified person than a low qualified person. The study highlights the economic benefits that a country can acquire with the help of a highly qualified person as compared with a low qualified person. The study takes into account the rate of employability of the two types of people, their rate of earning and the job satisfaction that they derive. These factors vary with the type of people, the gender and the mentality that the people possess. The study argues this topic taking into consideration the various factors that contribute to the building up of them economy.
According to Astin (2012, p.55), undergraduate people earn about 20% to 25% more than a person who has completed his graduation. This can be related to the fact that the undergraduate people possess more skills in working with technologies and other handicraft works. Apart from this, competition among the highly qualified people is more than with the low qualified people. This is because a highly qualified individual aspires to be doctors, engineers or owner of a big business. Forsyth (2014, p.44) stated that the return to the economy by a highly qualified student depends upon the subject that they have studied. In this regard, it can be said that the lifetime earning of a dentist or any other medical qualification is only £340,000. This is very low when compared with the annual income of a person qualified in humanities.
An ordinary person qualified only in humanities earns £51,549. This is more than the earning of a highly qualified individual possessing knowledge about various fields. However, the benefits of higher education increase as an individual gains experience (Hout, 2012, p.379). This is because in some organisations highly qualified personnel are required in order to manage an industry and improve its financial condition in the economy. The older the people are, the more valuable they become to the society. However, the hard-working nature of the people diminishes. The highly qualified people seek to perform jobs that are more suited to less hard work. In this regard, it can be said that the biggest contribution made to the economy of England is by the undergraduate people. T
he employment of a highly qualified individual enhances the chances of contribution to the society. This is because; the manager of an organisation earns more than an employee. In this regard, a highly knowledgeable person can contribute more to the economy of a country. Despite the earning rate of a lower qualified individual, contributes more to the economic condition of the society. The suitability of the jobs that they pursue is more than that of a graduate person. Hence, the employability rate is also more in favour of the undergraduates. These benefits the economy by a great deal, as the undergraduates can contribute heavily to the rise of the economy.
Education qualifications affect the earning rate and the employability rate of an individual. This is because most organisations prefer to employ people with a higher qualification. According to Mertens (2014, p.33), knowledge is an important factor for the progress of an economy. Without the proper possession of knowledge, an individual cannot gain the respect and the desired recognition in a highly competitive world. Thus, individuals possessing a great deal of knowledge has an advantage of getting better jobs than compared to the people with a low knowledge level. However, Mittler (2012, p.44) stated that knowledge of a person does not signify high qualification of an individual. An individual with a low qualification can possess knowledge based on practical skills; this is highly beneficial for an organisation. Thus, both the types of people hold strong chances of being employed and contribute to the growth of the society. The employability rate increases with the increase in experience of an individual.
However, the employment rate of the highly qualified individuals depends upon the qualification of the subject they possess. A person holding a graduate degree in management has a better opportunity of being employed in a multinational sector. This comparison arises out of the mentality of an individual. With the existence of competition in the market, employment is one of the hardest things for an individual. Every individual possessing a good knowledge about a particular topic tends to get relevant job suitable to his skills. Mittler (2012, p.44) stated that the skills of an individual need to be taken into account before recruiting a person.
Hence, a person possessing higher skills can get better employment than a person possessing higher knowledge can. Although it is argued that skill and knowledge are proportionate to each other. This is because without proper knowledge of an activity a person cannot apply his or her skills. This outline the fact that a highly knowledgeable person has to wait for a long time before being employed in a multinational sector. In this regard, individual professions such as that of a doctor benefit in terms of employment. Although there remains a question of success in this profession, the employment rate and the qualification of an individual hold a direct proportion to one another (Peters, 2015, p.33). The job satisfaction of an employee is also taken into consideration regarding the rate of employability and the contribution they make towards the economy.
The job satisfaction of an individual plays an important factor for the rate of employment. Job satisfaction depends on upon the type of job that an individual undertakes. Job satisfaction depends on upon the qualification of an individual. The higher the qualification, the more difficult it is for an individual to get a job as per his desires (Sena et al. 2012, p.427). This is due to the existence of competition, lack of jobs and the mentality of the people. A highly qualified person never settles for a job that does not match his qualifications. On the other hand, the job that a highly qualified person gets need to portray the skills of the person. Thereby, the rate of unemployment as well the rate of turnover increases in an economy. In this regard, as stated by Stephenson and Yorke (2013, p.67), a person possessing low qualification seems to derive job satisfaction from any work which they indulge.
A low qualified person does not possess a greater chance of being employed by a reputed company on a large pay scale. Thereby, the kind of job opportunities derived by the person reflects the qualification of the individual. Thus, they do not possess any regrets in comparison to the job. Hence, it can be said that a person possessing lower qualification have a stable mentality in terms of rate of satisfaction. They also reduce the rate of turnover in an industry. In this context, it can be said that the employability rate of such individuals is higher than compared to a highly qualified person. Stephenson and Yorke (2013, p.67) stated that the rate of earning also increases as most organisations tend to reward loyal employees with financial and non-financial motivation factors.
The growth rate of such individuals in an organisation contributes to the increase of economic rate. Thus, unemployment and job satisfaction are related to one another. The rate of employability depends upon the job satisfaction rate of an individual. In the words of Mittler (2012, p.44), the earning of an individual depends upon the type of job they undertake. In this context, a highly qualified individual is more prone to be dissatisfied with the type of job they posses. Thus, a low qualified individual is the type of people most organisations need to seek in order to reduce the rate of turnover.
Thus, it can be concluded that a person with higher qualification possesses certain advantages than a person with a lower qualification. The earning rate of a highly qualified person is more than that of a person possessing low qualification. However, such a thing depends on upon the studies undertaken by an individual. An individual profession such as that of a doctor earns less than a person possessing a degree in humanities.
This is mainly because success in the profession depends on upon the job satisfaction of an individual. The rate of employability of an individual also depends on upon the type of job they undertake. Thus, the earning of an individual, employability and job satisfaction depends on upon the mentality of an individual and not about the degree and qualifications, they possess. The skills of an individual play an important factor in the field of employability and earning capability. Hence, the possession of a degree is not an important factor for an individual.