Relationship between Labor Market and Education Essay

Relationship between Labor Market and Education - Essay Example From the above table it is evident that majority of full time workers are those with PhD, masters, bachelors degree and 2 year program. Of those interviewed those with masters' degree and work full time amount to 66.2% while only 43% with high school diploma are working full time. In contrast to this we check the percentage of those that are unemployed; from the table only 5.2% with PhD are unemployed compared to 11.7% of those who have attained high school diploma. There it is evident that employment status will depend on education attainment. Now due to the fact that the T critical value is less than the T calculated value we reject the null hypothesis that the two means are equal therefore we conclude that mean percentage of those employed and have PhD is greater than the mean value of those employed and have attained high school diploma. In the labor market people who have higher educational attainment are paid more than others, for example PhD holders will be paid higher wage rates than bachelors degree holders, in this case we analyze education level and lowest wage willing to accept, the following table summarizes the results: The above table summarizes the percentage of those who are willing to paid 4.35 to 9 according to their education attainment; it is evident that only 1% of PhD holders are willing to be paid 6 dollars while 7.8% of GED holders are willing to be paid 6 dollars. ... Variance 1 = (2.22)2 Variance 2 = (2.47) 2 N1 =2535 N2 = 2535 Tcal = 100.2828 T critical at 95% level of test = 1.9599 Now due to the fact that the T critical value is less than the T calculated value we reject the null hypothesis that the two means are equal therefore we conclude that mean percentage of those employed and have PhD is greater than the mean value of those employed and have attained high school diploma. Education and lowest wage willing to accept: In the labor market people who have higher educational attainment are paid more than others, for example PhD holders will be paid higher wage rates than bachelors degree holders, in this case we analyze education level and lowest wage willing to accept, the following table summarizes the results: High school diploma GED 2-year program Bachelors Degree Masters Degree PhD... 4.35 0.1 0 0.2 0 0 0 4.5 0.4 0.9 0.3 0.1 0 0 4.75 0.2 0.9 0.1 0 0 0 wage 5 5.7 11 3.2 0.9 0.3 1 6 4.4 7.8 3 1 0 1 7 4.3 6 3 1.3 0.8 0 8 2.7 6.3 3.1 2.4 1.8 0 9 1 4.1 1.6 0.5 0.8 0 The above table summarizes the percentage of those who are willing to paid 4.35 to 9 according to their education attainment; it is evident that only 1% of PhD holders are willing to be paid 6 dollars while 7.8% of GED holders are willing to be paid 6 dollars. For this reason therefore it is evident that the cost of labor depends in education attainment. Hypothesis: More high school diploma individuals are willing to be paid 5 dollars than Masters Degree holders Null hypothesis: H0: a = b Alternative hypothesis: Ha: a b Where a high school diploma individuals are willing to be paid 5 and b is masters individual willing to be paid 5 dollars therefore a = 5.7and b = 0.3 Tcal = 2.34057 T critical at 95% level of test =