Previously, we have discussed how one's college major impacts their potential earnings. Obtaining a college degree also correlates to higher income, as statistics from The New York Times and Pew Research Center demonstrate. American workers who have earned college degrees make 74 percent more than those with high school degrees alone, according to the Organization for Economic Cooperation and Development or O.E.C.D.
Pew Research notes that college-educated households are the only group whose incomes increased on a per-household basis from 1991 to 2012. Household income increased 9 percent, from $92,289 to $100,637, for houses with bachelors degrees and 20 percent for households with professional degrees. By contrast, households without college degrees saw their income decrease.
On a macro level, the relative education level of an area affects hiring trends, and where employers decide to base their businesses.
The rise of technology and the wane of manufacturing in the U.S. have also altered hiring trends, with most employers looking to hire those with at least Bachelor's degrees. In addition, it's no coincidence that business owners often choose to base their companies in areas with a high concentration of universities and a well-educated population. In a recent post, we described this trend, noting the development of "innovation hubs."
Innovation hubs are "places where IT, software, science research, finance and marketing companies drive economic growth," explains Economist Enrico Moretti of the University of California-Berkeley to NPR. These cities include San Francisco, Seattle, Boston and Raleigh-Durham. Moreover, these innovation hubs have been able to continue hiring during the recession.
What is clear is that education not only benefits graduates, but also influences employers and hiring trends, in turn strengthening the local job market and economy.