Salary is a measure of a worker's productivity. My paper will try to clarify the connection between education and salary. These considerations are important for the government to examine when making policy decisions when it comes to government funding for public schools, community colleges, loans and other forms of financial aid for private college students. A more detailed representation of the effects of an additional years of schooling could also help students when deciding what level of graduate school is worth the money and time. I use the Current Population Survey data on individuals from the United States Census. I estimate the effects of different levels education while controlling forage, race (white, black, Asian or other), sex, located in a city or not, marital status, what sector they work in, pension, and union status. The results of this research could help the government better understand the returns on investment in federal loans and grants for higher education.
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