'Education improves income potential'
11/01/2008(4:12 PM)
Making it compulsory for students to remain at school for additional years can have a positive impact upon their earning potential, a new report has found.
Andrew Leigh and Chris Ryan, economists from the Australian National University, found that pupils who stayed in school had a greater level of income over the course of their lives, the Australian reports.
The study noted that people in states where the school leaving age had been raised in the 1960s had "substantially higher earnings during their lifetime, according to the newspaper.
Consequently, recent increases made to the school leaving age could be "beneficial" for people, it added.
Commenting on the findings, Mr Leigh said: "The government ought to think of the skills shortage in terms of the life chances of somebody who gets ten years of schooling in a modern economy."
Earlier this week, the Australian reported that opposition leader Brendan Nelson warned against taking steps within the country's labour market that could place "wage pressure" on the economy and possibly lead to higher unemployment.
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