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Running Head: IMPORTANCE OF EDUCATION 1

Importance of Education

Student’s Name

Institution Affiliation

IMPORTANCE OF EDUCATION 2

Importance of Education

Part I

Asoni, A., & Sanandaji, T. (2016). Identifying the effect of college education on business and employment

survival. Small Business Economics, 46(2), 311-324. doi:10.1007/s11187-015-9686-5

The study utilized a multipronged identification strategy to measure the effect produced by

college education on business and employment survival. The study looked at both employed and self-

employed individuals and their level of education relying on data from the National Longitudinal Survey of

Youth 1979. The study found that having a degree significantly increased the chances of gaining

meaningful employment. However, having a degree had less significant impact on the chances of

business survival. The authors conclude that college degree benefits individuals by increasing chances of

employment. At the same time, it provides knowledge and technical expertise needed for

entrepreneurship.

The findings of the article directly support the thesis that education is vital in several areas in this

case in employment and entrepreneurship. Therefore, education plays a vital role in upward social

mobility making getting a college degree a essential strategy in life.

Abel, J. R., & Deitz, R. (2014). Do the Benefits of College Still Outweigh the Costs?. Current Issues In

Economics & Finance, 20(3), 1-12.

The authors note college tuition is continuously in the increase a trend that has led to observers

questioning the value of college education. However, an analysis of economic returns to college from

1970s demonstrate that an associate degree and bachelors degree still outweigh the cost. The study

found that a degree offers a return on 15% over the past decade. Therefore, the return to value on the

degree has remained despite falling wages.

The article is relevant to the study establishing the value of education and the investment on

education on the long-term. The article findings support the thesis that education has a positive impact on

individuals helping them develop their financial status.

IMPORTANCE OF EDUCATION 3

Guo, X., Chen, W., & Yu, A. (2016). Is college education worth it? Evidence from its impacts on

entrepreneurship in the United States. Journal Of Small Business & Entrepreneurship, 28(1), 1-26.

doi:10.1080/08276331.2015.1104452

The study looks at the impact of education of the likelihood of self-employment and

entrepreneurship and also the annual income in the United States. The data obtained from the

Current Population Survey (CPS) between 1989 and 2011. The study found that individuals

with college education have a high probability of owning their businesses. In addition,

entrepreneurs with a level of college education had high annual income than their counterparts

without. In particular, college education has been found to promote Black and Hispanic

entrepreneurs.

The findings of the study support the thesis that college educations promotes improved

social-economic status helping communities overcome social-economic inequality. Overall,

college education is beneficial.

Part II

Thesis statement: Education provides the initial step towards financial and social development

and freedom by opening opportunities of employment, entrepreneurship and networks needed to

develop individuals and communities.

Benefits of Education to Individuals and Communities

Education Impact on Employment and economic-freedom

Education is directly tied to access to employment opportunities with employers always

seeking for talented and skilled people to develop their brands. Having a college degree in the

IMPORTANCE OF EDUCATION 4

respective field is one of the necessary qualifications to secure a well-paying job. A study by

Abel and Deitz (2014) finds that an investment in a college degree is still a valid plan to

economic and financial freedom. The study found that despite minimum wage falling and college

fees increasing a degree offers 15% return on premium within the first decade (Abel and Deitz,

2014). A person who decides to investment in education will continue to harness long-term

benefits from employment or entrepreneurship. The study provides a valid reason for college

students to investment time, money and effort in their academic growth with employment

opportunities available for skilled and qualified personnel.

Education Positive Impact on Entrepreneurship

Entrepreneurs have several things in common including talent, skill, passion and most

importantly a good quality education. Entrepreneurs represent a group of people whose interests

are to gain knowledge and explore opportunities in the market. Guo et al. 2016 finds that college

education is one of the primary necessities for successful entrepreneurship in the United States.

Asoni and Sandanji (2016) make similar findings where they identify college education as a

necessary qualifications for a majority of the new business owners. Therefore, relying on the

various evidences it is accurate to state that education is a perquisite requirement for successful

entrepreneurship.

Education impact on Social Economic status, business and self-development.

Education is not just meant to equip individual with the skill to be employed. Rather,

education provides the networks and connections needed for personal and business growth. To

illustrate, education provides individuals with the exposure to a wider angle of thing and

engagement. Example, a study by Guo et al (2016) finds that education allows for minority

IMPORTANCE OF EDUCATION 5

groups such as African Hispanic Americans to overcome social-economic disparities and

develop self and their communities. Access to employment and entrepreneur skills and resources

are some of the ways that education promotes social-economic growth and helps reduce gaps in

income status for different groups particularly in the United States. Therefore, it is accurate in

this case to state that education is a path to financial or economic freedom.

IMPORTANCE OF EDUCATION 6

References

Asoni, A., & Sanandaji, T. (2016). Identifying the effect of college education on business and employment

survival. Small Business Economics, 46(2), 311-324. doi:10.1007/s11187-015-9686-5

Abel, J. R., & Deitz, R. (2014). Do the Benefits of College Still Outweigh the Costs?. Current Issues In

Economics & Finance, 20(3), 1-12.

Guo, X., Chen, W., & Yu, A. (2016). Is college education worth it? Evidence from its impacts on

entrepreneurship in the United States. Journal Of Small Business & Entrepreneurship, 28(1), 1-

26. doi:10.1080/08276331.2015.1104452

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