The financial benefits of higher education are frequently debated, especially with the increasing demand for skilled workers driving up the wages of tradesmen. So does having a higher level of education result in an increased average salary?
What do you gain from attending college or university?
Higher lifetime earnings
Research consistently links a college education with higher earnings. For most people, there are financial benefits to going to college. Education beyond high school is linked with an increase in pay at every level.
Some studies have shown that bachelor’s degree holders have median lifetime earnings of 2.8 million dollars, which is over $1 million more than those with a high school diploma alone.
Lower unemployment rates
When you earn a college degree, you’re helping to protect yourself from unemployment. The US Bureau of Labor Statistics has found that as your degree level increases, unemployment rates decrease. Unemployment rates are even lower for those with advanced degrees, such as a master’s degree or doctoral degree.
Increased job opportunities
Employers have increasingly made college education a requirement for employment, even in jobs that didn’t require it before. And industries that require more education are also hiring more people, showing a 68% increase in employment between 1980 and 2015. Jobs in education and health services, which overwhelmingly require a college degree, have been gaining the most employees.
Better health, job satisfaction, and more
Some studies have shown that a college education is associated with a healthier lifestyle. College graduates are less likely to smoke tobacco, and more likely to exercise regularly. They may also be less likely to be exposed to dangerous working conditions. The children of college graduates benefit as well, making it more likely for them to have access to preschool and other enrichment activities.
More than half of two-year and four-year degree graduates report that their college education was very useful in opening up job opportunities, and led to personal and intellectual growth.
The picture in the EU
According to Eurostat data, the average salary for those with a high level of education (at least one year of tertiary education) in the EU was approximately 50% higher than those with a medium level of education (secondary/high school), and a humongous 70% higher than those with only a low level of education (anything below secondary/high-school).
The basic correlation was consistent across all member states, but the highest disparity between wages by education level was in Portugal – the average hourly earnings there were three times higher than for those with a low level of education.
The trend was constant throughout the European Union and the EEA, regardless of GDP. The richest European country by capita, for example, is Luxembourg, where residents with a high level of education make almost double those with the lowest level of education. Compare this to the country with the lowest GDP per capita, Bulgaria, where the difference in wages between the least and most educated residents is just above double.
Similarly, in the Czech Republic, Hungary, and Poland, the average wage is more than twice as high for those educated to a high level.
There is a clear correlation between education level and salary. Generally, the more educated you are, the greater your salary becomes.
The picture in the UK
Focusing on the UK specifically, reports from the Office of National Statistics showed that the more advanced your education, the higher your salary throughout your lifetime.
While those who did an apprenticeship earn a higher wage at the age of 21 than those who graduated from university, this quickly reverses after graduates spend a few years in the workforce.
Those who completed an apprenticeship earn less than graduates of all ages over 24 but earn more on average than those educated to A level or A to C grade GCSE standard.
For those educated to an A to C grade GCSE standard, gross annual earnings level out at around the age of 30 at an average of £19,000.
For graduates, their annual income rises at a rapid rate as they get older, before plateauing around the age of 39 at an average of £35,000.
The picture in the US
The same pattern emerges in the US and does not conflict with the pay of some diplomas and trades. Data from the 2021 Current Population Survey showed that the average weekly wages were:
| Earnings and unemployment rates by educational attainment, 2021 | ||
| Educational attainment | Median usual weekly earnings | Unemployment rate |
| Doctoral Degree | $1,909 | 1.5% |
| Professional Degree | 1,924 | 1.8 |
| Master’s degree | 1,574 | 2.6 |
| Bachelor’s degree | 1,334 | 3.5 |
| Associate’s degree | 963 | 4.6 |
| In some colleges, no degree | 899 | 5.5 |
| High school diploma | 809 | 6.2 |
| Less than a high school diploma | 626 | 8.3 |
Education level and employment prospects seem to correlate around the world. A study carried out by the International Labour Organization found that tertiary education in developing countries led to a higher chance of securing stable work and earning more money.
The study, which covered Northern and Sub-Saharan Africa, Asia, Eastern Europe, Latin America, and the Middle East, showed that an average of 83% of young people with university-level education had secure jobs in the 27 countries surveyed, as opposed to 40% of those with only secondary education.
Additionally, graduates also secured higher wages. In Nigeria, for example, those with secondary education earned a daily average of 1000 Nigerian Naira, those with a polytechnic qualification (OND) earned 2000 Naira, and those with a university qualification earned 3500 Naira.
However, none of these statistics take into account the social and financial background of those surveyed. It’s important to bear in mind that the vast majority of students accessing higher education, especially in less economically developed countries, have parents who can afford to send them to university and support them while they study. And it’s often the case that familial background has just as much of an effect on potential earnings as education level.
Nevertheless, the results are consistent across the board. Higher levels of education offer a better salary and quality of life, wherever you live.
Do you want to earn a higher salary? The simple answer is to upskill yourself at one of the Donnish Hub Educational Limited partner institutions. We guarantee to help you to fulfill your dreams.
For Inquiries & Applications
For detailed information and application, please, contact Donnish Hub Educational Limited at +234 817 973 0282 or email admission@donnishhub.com.ng. You can also download our brochure at www.donnishhub.com.ng