Relationship Among Education, Income, and Life Satisfaction

Abstract

This study examines the relationships among Education, Income, and Life Satisfaction. The study also seeks to learn whether Unemployment can be a mediator of these relationships. For this study, database collected by the Quality of Government Institute was used. The database contains 194 countries' records on the topic and its variables collected in 2012. Correlation to test relationship, and partial correlation to test the relationship among the variables while controlling for unemployment was used. It was found that income strongly relates to life satisfaction, and years of schooling relates weakly to life satisfaction. Years of schooling, however, strongly relates to GDP per capita. Contrary to previous studies, it was found that unemployment was not a mediator of the relationship among Education, Income, and Life Satisfaction but shows slight indication that it can be a mediator between higher education and life satisfaction. It was advised that governments put more effort into education as well as future research on enhancing the quality and efficacy of education.