Why is education important for wages?
The worker’s wage profiles in the Wage Indicator are also defined by the level of education. In general the level of education determines the productivity of an individual. More educated individuals may be assigned more complex tasks, more responsibility, or are simply using their time at work more efficiently. Differences in educational attainment give rise to wage differentials even within the same occupation and for individuals sharing other characteristics. Therefore controlling for education is crucial for the reliability of our wage information.
