IMPORTANCE OF EDUCATION 2
Importance of Education
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
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.