THE RELATIONSHIP BETWEEN EDUCATION LEVEL AND INCOME

Abstract

This study examines the relationship between education level and family financial outcomes using secondary data from the U.S. Bureau of Labor Statistics (2024) and the Federal Reserve Survey of Consumer Finances (2022). The analysis compares income, wealth accumulation, and the wealth-to-income ratio across four distinct educational cohorts. The results show that higher educational attainment is strongly associated with greater income, wealth, and financial efficiency. Families with advanced degrees earn over three times the income of those without a high school diploma and accumulate nearly 18 times more median wealth. These findings underscore education as a primary driver of economic mobility and highlight the need for policies ensuring equitable access to higher education.