The Impact of Education on the Income of the Economically Active Population in the European Union

Abstract

In this article, we confirm that education is the main social catalyst for people from different social backgrounds. There is a direct connection between the conscious birth of children and the education of people. The higher the level of education, the higher the income of workers, the higher the labor productivity and speed of economic development, the higher the intensity of export. We found that over the past ten years, the population in the fears of the European Union has increased by an average of 3%. Along with the increase in the number and density of the population, the employment of people with higher education (level 5-8) is steadily increasing. It is important to say that in Europe as a whole, the trends we have identified characterize the steady demand of the labor market for raising the level of education of labor resources. Based on Eurostat data, we calculated that the average level of personnel costs in 2017 in the European Union was on average 37.4 thousand euros. The difference between the maximum level of personnel costs in the field of electricity, gas, steam, the highest value of which is noted in Austria and the minimum in the area of accommodation and catering services in Bulgaria is 30 times. For the same period of time, people receive a very differentiated income and have different motivation to work, as well as different opportunities to recover physical and mental costs. Despite the general growth trend in the share of educated economically active people in the countries of the European Union, about 9-10% of them are poor people. Our correlation-regression analysis showed that the more educated people, the higher the average level of their costs and the fewer people who can be classified as “poor”. Thus, education is the main factor in improving the competitiveness of any country and is the main wealth of the people. Keywords— education, employment, personnel costs, income, poverty