Question

CAN YOU WRITE THE LITERATURE REVIEW FOR THIS RESEARCH QUESTION: "RELATIONSHIP BETWEEN INCOME EARNINGS AND EDUCATION LEVEL IN THE UNITED STATES"

Answer 1

Americans are among the world's highest living standards, and have enjoyed decades of rising living standards. In 2015, median household income in the US stood at $56,516, up from $49,276 in 2010. Gains in household revenue, however, were not uniformly distributed among all income classes. Income inequality has been increasing in the United States since the 1970s, peaking in 2013

Saving is an important component of wealth formation. Wealth, also known as net worth, is the overall value of a person's properties, such as liquid assets (cash or anything you can quickly convert into cash), real estate, companies, and vehicles, minus any liabilities (money owed; debt). Creating wealth formation is an integral aspect of financial planning. And debt doesn't automatically mean evil. Since income at younger ages tends to start low, borrowing (taking on debt) helps people to buy things now and pay for them over time. This is called smoothing demand in an economic context

There's a close connection between education and income. Education is also considered a intellectual capital investment. People invest in human capital for similar reasons like making money, people invest in financial assets. In general, people with more education earn higher wages Often referred to as the "graduate wage premium" is the higher income resulting from a college degree. Research indicates that this premium has increased over time. Besides, the more skills people have in general, the more employable they are. As a result, the average unemployment rate for employees with more education is lower than those with less education

Inequality in wages and wealth has been on the rise in the US for decades. Education rates are closely linked to both revenue and income. Higher-educated households tend to have more liquid assets that can survive financial disasters, diversify their savings (investments) and sustain low debt relative to assets. Such financial practices are successful wealth-building techniques. Since much of the building of wealth can be tied to financial decision-making, financial literacy is likely to play a key role in rising wealth disparity over time.