The following article is an excerpt from the U. S. Census Bureau report released on September 8, 2011.

The relationship between education and earnings is a long-analyzed topic of study. Generally, there is a strong belief that achievement of higher levels of education is well established path to better jobs and better earnings. This report provides one view of the economy value of educational attainment be producing an estimate of the amount of money a person might earn over the course of their working life, given their level of education.

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It is a widely known fact that the level of education has risen steadily in America over the last 70 years. In the 1940 census, 24.5% of people aged 25 and over had at least a high school diploma. In 2008, 85% of this group had at least a high school diploma, and 27.7% had a bachelor’s degree or higher. In addition, 10.2% of people ages 25 and over had advanced degrees.

Occupation is often the mechanism by which education is related to earnings. Higher levels of education allow people access to more  specialized jobs that are often associated with high pay. Degrees in many occupations are treated as job training that may be required for a position or earn the employee more pay within that position. While this report does not focus on the specific occupations individuals hold, it does consider the degree of labor force involvement.

The following statistics are based on an analysis of 2006 – 2008 data. Census researchers found that the difference in annual earnings between a professional degree (master’s or doctoral) and dropping out of high school was about $72,000. Those with higher levels of education were also more likely to be employed full time and year round.

Race and gender still play a strong role in lifetime earnings. White men had higher earnings than any other group at each education level below a master’s degree, where they were out-earned by Asian men. Moreover, workers of some racial groups got more value from higher degrees that others did. For example, while Asian, Hispanic, and non-Hispanic black workers with just a high school diploma made roughly similar earnings over a 40 year career span, an Asian man with a master’s degree could expect to earn nearly $3.5 million during his career, while with the same academic credentials, a Hispanic man would earn $2.8 million, and a non-Hispanic black woman would earn only $2.3 million during the same time frame.

The Census researchers also compared the data to previous educational attainment data and found that the overall level of education in America has risen dramatically in the past. As of 2008, 85% of adults ages 25 and older had at least a high school diploma, up from 24.5% in 1940. However they found those who speak English as a second language had an annual decrease in earnings, after accounting for education and other issues. Those who spoke English “very well” still saw $989 less each year compared to workers who spoke only English.

This is a convincing data research that shows the importance of education to all people regardless of ethnic group, race, or gender.