The Impact of Education on Poverty
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The effects of education on poverty has often been discussed and analyzed by economic researchers. This paper aims to do the same, researching the education-poverty relationship. In this paper, we create a regression model with education level as our independent variable and its causality upon the income to poverty ratio. Using data compiled from the US Census Bureau, we created a single variable regression model estimating the ceteris paribus effect of education on income to poverty. We followed this regression model with several others, separating our data into different population groups, to compare the effect of education within these groups. The results of our regression model indicate a positive correlation between education and the income to poverty ratio with a coefficient of 15.5 indicating that each additional threshold of education achievement results in a 15.5% increase in the income to poverty ratio. When contrasting this coefficient with different population groups, such as minorities and those within poverty, we can see that the education coefficient varies, many times drastically. We also see, through multiple variable regression models, the effects other independent variables have on poverty.