GDP per capita has always been a clear indicator of how well-off the citizens of a country are. GDP per capita is dependent on a substantial number of factors, but this paper focuses on two particular factors: Years Of Education and the... more
GDP per capita has always been a clear indicator of how well-off the citizens of a country are. GDP per capita is dependent on a substantial number of factors, but this paper focuses on two particular factors: Years Of Education and the Rate of Inflation. There is a substantial amount of evidence and research pointing to a positive correlation between the years of education and the GDP per capita as well as research explaining that there is the possibility of there being no such relationship. Meanwhile, there is the fact that increases in inflation rates are surpassing increases in wage rates leading to a general decline in real income levels. This means regardless of the fact that income earnings can be raised by acquiring more years of education, these increases can be made irrelevant by the rising inflation rate. As for now, there is clear and reliable evidence that a clear path to a high-income level is the acquisition of tertiary or post-secondary education even as inflation rates make these elevated levels falter.
