A Comment of a Maltese Accountant
There is no denying that education is a significant part of our lives, not only for higher economic stability, but also for an emotional and psychological point of view. These days, many people are returning to school to further their education. Capable of increasing self-confidence and showing determination, knowledge is an invaluable tool.
Learning to progress in your career will bring about numerous challenges, some more exciting than others. Nonetheless, the fact remains that education can enhance your communication skills, analytical skills, problem-solving skills and reasoning skills – all of which will help your professional goals.
A. Education Reduces Economic and Social Risks
Often, the message portrayed by the Government and Universities is that a person’s knowledge level is the primary determinant of whether they will be extremely exposed to economic and social risks.
The stigma is that without a minimal level of education, people can often find themselves without shelter or stability. By contrast, those who have benefited from higher education have higher chances. While these findings might have a grain of truth attached to them, a considerably large determinant is the structural changes in the labor market. More specifically, highly educated University graduates take the jobs of the middle-educated individuals, who, in turn, drive low-educated workers into unemployment.
Nonetheless, different data contradict these results. For example, if tertiary-educated individuals were to take medium-skilled jobs en masse, the monetary compensation they would receive would not increase by much. However, as wages do increase with age, this suggests that the higher level of skills among tertiary-educated workers is relevant to the salary they receive.
B. The Value of a Good Education
There is a widening employment gap between well-educated youths and those who leave school early. According to studies on the matter, in the OECD area, the average difference in earnings between students who didn’t finish high school and those with a University degree has risen from 75% in 2008 to 90% in 2011.
When considering the purely economic point of view, we are talking of private returns on investments of around 10% per year. This might also suggest that taxpayers gain significantly more in the form of higher tax payments than those from lower educational backgrounds. Some studies have concluded that a good education provides a degree of "valuable insurance" against lacking experience – and this seems particularly true for younger adults.
Across OECD countries, research has recorded that an average of 18% of 25-34-year-olds without secondary education were unemployed in 2011, compared to 9% of 55-64-year-olds. Additionally, among 25-34-year-olds with a tertiary qualification, an average of 7% didn’t have a place of work, compared to only 4% of 55-64-year-olds with a similar level of education.
Results seem to be highly conflicting and it is increasingly difficult to say with certainty whether education yields a higher-quality of life. Particularly in times of economic crisis and fierce competition in the labor market, it is unlikely that employers will value education as much as they do under normal political and economic situations.
C. The Statistics
The message portrayed by our society is pretty clear – education will open the gateway to better and higher-paying jobs. To put things into perspective, consider that individuals with a high school diploma are twice as likely to make less per year as a graduate with a college degree.
From a numbers point of view, these results sound like excellent future prospects. For example, finding a new accountant position will always require one level of education or another. However, while the economic and social benefits of education are declared as high, Education at a Glance revealed that some countries struggle to help unemployed graduates that are now living on the streets.
Although there is always a scarcity of finding employees that have the needed skills, these conflicting results show that education does not automatically translate into relevant skills, a better job, or a higher-quality of life.
In fact, last year’s data concluded that vocational qualifications are the actual pathway to employment. For example, countries like Austria, Germany, or the Czech Republic have a high degree of occupational students. And, it’s not coincidental that these same nations struggle the least with youth unemployment rise. In other words, our education systems should focus more on skills-oriented learning, rather than qualifications-focused education.
Conclusion
Going back to school does show your employers a drive for success and commitment to your career. Nonetheless, investing time and money needs to correlate to the vocational skills you are able to learn, as those are the determining factors in progressing your career.
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