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.

Trends of Migration Transformations in the Countries of the European Union and the Russian Federation: Identification of Predictors of Migration Processes in the Context of Migration Policy and Public Administration

“…In Canada, Australia, Finland, the emphasis is on recruiting migration policies with the involvement of highly qualified specialists (Balaz & Williams, 2018;Bijak & Czaika, 2020). In the Russian Federation, the lack of labor resources until 2016-2017 compensated for the influx of people from the countries of the former Soviet Union: Kazakhstan, Uzbekistan, Tajikistan (Kuznetsova, 2019). The process of successful integration depends on the quality of migration policy, strict compliance with the Laws, knowledge of the language of the receiving parties and the level of qualification of arriving migrants (Theoharides, 2020).…”

“…In the study of risks and uncertainties associated with migration processes, six theoretical approaches can be applied: 1) risks in terms of the quality of human capital formation, 2) risk attitude and tolerance, 3) new economic aspects of migration, 4) cultural risks, 6) social risks and statehood (Bijak & Czaika, 2020;Zinn, 2016). The issues of the influence of the level of education on the incomes of the economically active population and the prospects for educational migration in the countries of the European Union and in the Russian Federation were considered in our previous works (Kuznetsova, 2019), factors and reasons for the successful adaptation of migrants to the labor market in the European Union, as well as the impact of migration on the labor market (Kuznetsova et al, 2019). We completely agree with the opinion of scientists that existed theories are not quite useful for specialists in the field of migration, because of migration theories are fragmented, belong to different spatial scales, they are difficult to practically implement and cover a number of distant disciplines (Wickramasinghe & Wimalaratana, 2016;Willekens et al, 2016).…”

Educational Potential as a Basis for Increasing the Country’s Competitiveness

“…In our works, we have already discussed the impact of education on the incomes of the economically active population in the European Union [17] and the factors of successful adaptation of migrants to the labor market in the European Union, as well as the prospects for the development of educational migration in the Russian Federation [18]. Since we are living in a period of transformation of the education system, the multifaceted nature of the factors affecting the problem under consideration aims or helps us to further continue research in this direction.…”