Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th, 2014, pg.

Assignment 4
Economic Benefits of Education
Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th, 2014, pg. 2

Introduction:

Knowledge is power and therefore learning is the most important which a person can

possess in this world. Knowledge not only enables individuals to reap its benefits but it is

also very beneficial to the society as well as the country. This paper discusses the

economic benefits of knowledge for the individuals, society and country.

The Benefits of Education for the Individual:

Education is one of the most lethal weapon in the modern day. Education not only

increases the awareness of the person about what is right and what is wrong but it also

enables him to increase standard of living as well as increasing his self-confidence.

People with higher level of education are less likely to have problem in obtaining jobs,

regardless of their gender, ethnicity and race. According to the report published in 2007

by US bureau of labor statistics the unemployment rate of people graduated from college

is only 2.4% which is almost the half when compared to the high school graduates (5.2%)

and less than one third the rate of high school dropouts (8.5%) [1]. People having

professional degree are more likely to work for an employer that offer pension plan

(69%) and are more likely to participate in pension plan(89%). Furthermore, these people

are more likely to have been provided with health insurance from their employers

[2].Another important personal benefit which reaped by the individual who have higher

education level is that these people live nine years more compared to the dropouts and

these people are less vulnerable to diabetes, cancer, lung disease, cardiovascular disease

and other type of infections. Higher level of education is related with improved health
Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th, 2014, pg. 3

across all ages and earnings [2].Other personal benefits which can individual can achieve

through better and higher education is to have better employee benefit packages, longer

vacations and better work conditions.

The Benefits of Education for Society as a Whole:

Individuals receive better economic benefits in terms of more lifetime income due to

better and high education but it isn’t these individual who benefit from these gains but the

whole society gains from it. These individual will be more likely to have higher incomes

and are more likely to pay more taxes. Similarly, they will also be having better health

which again benefits the society and these individuals are also more likely to depend on

government social schemes and they will probably get more engaged in civic activities.

People with education are more likely to have job which provides them with health

insurance as well as retirement benefits. This will result them to have access to better

health care services which in turn will lead to longer and healthier lives. These healthier

lives thereafter lead to decrease in public spending on these people, therefore reducing

the government costs. Hence education not only brings with itself important and

significant benefits to the society by providing greater employment opportunities but it

also increases the income of the people because of their superior and enhanced skills and

better social status.

Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th, 2014, pg. 4

The Impact of Education on the Economic Conditions of a Country:

Every country can benefit from a good educational system. In many countries with

additional year of schooling people earn 10% higher wages, which in turn contribute to

national economic growth. Education helps in the political stability of a country, because

educated people handle political matters through critical thinking, which adds as strength

for the country. It helps in the growth of the civil society; it allows people to learn more

about their rights and their duties and then exercise it accordingly which results in an

educated population of a country. Dee (2004) and Milligan et al (2004) estimate that an

additional year of schooling increases voter registration and voting in the US, with

impacts typically ranging from 30% to 40% [3]. Educated people elect officials who are

educated enough to plan ahead. A country prospers this way, because the laws then will

be wise and government incompetence and public corruption is better dealt. Educated

citizens practice more reasonable citizenry.

Conclusion:

Education is not only benefits individual but it also has significant benefits for the society
as well as for the country. A knowledgeable person is not only a self-dependent but is
also an asset to a society as well as the country.
Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th, 2014, pg. 5

References

1. Bureau of Labor Statistics. (2007, July). Labor Force Population from the current

Population Survey. Retrieved from http://data.bls.gov/timeseries/LNS14000000

2. College Board. (2007). Education Pays: The benefits of higher education for

individuals and society. Retrieved from

http://www.collegeboard.com/prod_downloads/about/news_info/trends/ed_pays_

2007.pdf

3. Milligan, Kevin, Enrico Moretti, and Philip Oreopoulos (2004). “Does Education

Improve Citizenship? Evidence from the United States and the United

Kingdom,” Journal of Public Economics, 88(9-10):1667-1695.

4. Institute for Higher Education Policy, Washington, and D.C. The Broader

Societal Benefits of Higher Education. Retrieved from

http://jcu.edu/academic/planassess/planning/files/Planning%20articles/Broader%2

0Social%20Benefits.pdf
Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th, 2014, pg. 6

Paper 4 Rubric

Total 100 points

Criteria Unacceptable Acceptable Proficient Student Points

and Comments

Discusses the Vaguely discusses Discusses the Discusses the

benefits of an the benefits of an benefits of an benefits of an
education for the education for the education for the education for the
individual. individual or individual and, for individual and
completely off the the most part, demonstrates solid
topic. fulfills assignment ability to
requirements. accomplish the
assignment.

(0-11 points)
(12-13 points)
(14-15 points)

Discusses the Vaguely the Discusses the Discusses the

benefits of an benefits of an benefits of an benefits of an
education for education for education for education for
society as a whole. society as a whole society as a whole society as a whole
or completely off and, for the most and demonstrates
the topic. part, fulfills solid ability to
assignment accomplish the
requirements. assignment.

(0-11 points) (12-13 points) (14-15 points)

Discusses the Vaguely discusses Discusses the Discusses the

impact of the impact of impact of impact of
education on the education on the education on the education on the
economic economic economic economic
conditions of a conditions of a conditions of a conditions of a
society. society or society and, for the society and
completely off the most part, fulfills demonstrates solid
topic. assignment ability to
accomplish the
Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th, 2014, pg. 7

requirements. assignment.

(0-19 points) (20-22 points) (23-25 points)

Integrates Rarely integrates For the most part, Consistently does a

established established does a good job of good job of
managerial managerial integrating integrating
economics economics established established
principles into the principles into the managerial managerial
discussion. discussion. economics economics
principles into the principles into the
discussion. discussion.

(0-11 points) (12-13 points) (14-15 points)

Synthesizes Synthesizes For the most part, Consistently and

relevant information at a effectively effectively
information and minimal level. synthesizes synthesizes
materials to information, which information, which
provide evidence supports main provides strong
of critical thought. ideas. support to main
ideas.

(0-7 points)
(9-10 points)
(8 points)

Uses supporting Inadequate or For the most part, Consistently uses

documentation minimal use of uses supporting supporting
that has been supporting documentation documentation
properly documentation or that is properly that is properly
references and not properly referenced and referenced and
cited. referenced or cited. cited.
cited.

(4 points) (5 points)
(0-3 points)
Paper 4, MBA 723-01, By Waqas Sher Zaman, Prof. Ed DeJaegher, Feb 23th, 2014, pg. 8

Considered Considered Considered Considered

holistically, holistically, the holistically, the holistically, the
demonstrates the student student student
ability to write at demonstrates an demonstrates an demonstrates a
the graduate level. inadequate ability acceptable ability proficient ability to
to write at the to write at the write at the
graduate level. graduate level. graduate level.

(0-11 points) (12-13 points) (14-15 points)

SubTotal Points =

Turnitin.com Did not turn paper

into Turnitin.com
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Minus 10 points

Revisions based on Did not revise

the originality paper based on the
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Report. originality report

Minus 10 points

Total Points