The average income earned by an employee is believed to be dependent on their experience in their field of operation (Firebaugh, & Tach, 2012). The assumption of the relation is that old people have outstanding experiences in their fields of operation as well as high academic qualifications. The present analysis conducted an investigation on the effect of both education level and age on the average income earned by an individual. The analysis utilized data obtained from GSS.ORG from 2010 to 2016. The dependent variable, respondent income, was measured as a ration while the independent variables; age and highest degree of respondent, had their level of measurement as nominal. The current analysis hypothesized that both age and education level have a positive effect on the income of an individual. The following tables presents the multiple regression analysis.
|
Model Summary |
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| Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
| 1 |
.476 a |
.0975 |
.097 |
2.919 |
| a. Predictors: (Constant), Rs highest degree, Age of respondent | ||||
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|
ANOVA a |
||||||
| Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
| 1 | Regression |
1362768.582 |
2 |
681384.291 |
293.9 |
.000 b |
| Residual |
2899978.915 |
5441 |
342.261 |
|||
| Total |
4262747.497 |
5443 |
||||
| a. Dependent Variable: Respondent income | ||||||
| b. Predictors: (Constant), Rs highest degree, Age of respondent | ||||||
|
Coefficients a |
||||||
| Model |
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
||
|
B |
Std. Error |
Beta |
||||
| 1 | (Constant) |
7.422 |
.133 |
55.86 |
.000 |
|
| Age of respondent |
.558 |
.032 |
.079 |
17.36 |
.000 |
|
| Rs highest degree |
.041 |
.002 |
.559 |
14.76 |
.000 |
|
| a. Dependent Variable: Respondent income | ||||||
From the analysis of variance (ANOVA) results, the obtained p-value indicates that the obtained linear model is statistically significant. The coefficients obtained from the regression coefficients table above indicates that each of the independent variables have a positive impact on the dependent factor. In addition to this, the p-value for each of the independent variable shows that their relationships with the dependent variable are statistically significant thereby validating the developed null hypothesis. The equation below represents the linear model relating the dependent and the independent variables.
Income = 7.422 + 0.558 (Age) + 0.41 (Highest degree)
References
Firebaugh, G., & Tach, L. (2012). Income, Age, and Happiness in America. In Marsden P. (Ed.), Social Trends in American Life: Findings from the General Social Survey since 1972 (pp. 267-287). Princeton University Press. Retrieved from http://www.jstor.org/stable/j.cttq94xb.14
