Chapter 7.3, Problem 77E

To determine

To find: the unemployment rate for people with each level of education and there is an association between unemployment rate and education explain.

Answer to Problem 77E

Highest education	Unemployment rate
Didn’t finish high school	8.516%
High school but no college	5.23%
Less than bachelor’s degree	4.245%
College graduate	2.716%

Explanation of Solution

Given:

Highest education	Total population	In labor force	Employed
Didn’t finish high school	27,669	12,470	11,408
High school but no college	59,860	37,834	35,857
Less than bachelor’s degree	47,556	34,439	32,977
College graduate	51,582	40,390	39,293

Calculation:

The number of unemployed people is the number in the labour force

Highest education	Total population	unemployed
Didn’t finish high school	27,669	12,470 - 11,408 =1,062
High school but no college	59,860	37,834 – 35,857 = 1,977
Less than bachelor’s degree	47,556	34,439 – 32,977 =1,462
College graduate	51,582	40,390 – 39,293 =1,097

The unemployment rate is

Highest education	Unemployment rate
Didn’t finish high school	$\frac{1,062}{12,470}=0.08516=8.516\%$
High school but no college	$\frac{1,977}{37,834}=0.0523=5.23\%$
Less than bachelor’s degree	$\frac{1,462}{34,439}=0.04245=4.245\%$
College graduate	$\frac{1,097}{40,390}=0.02716=2.716\%$

It is observed that the unemployment rate is not the same for each highest education category. This then implies that there is an association between unemployment rate and education.