Analysis of education influence on the wage level in Czech Republic

The main objective of this thesis is to find out if and how education influence wage. Logical consideration and existing studies imply that there is a positive correlation in between achieved education and individual´s wage level. The studies, however, vary in size of influence and in the Czech Republic there are very few studies that deal with this topic. This master thesis is based on its own survey from which was obtained a total of 521 responses. The survey was conducted during the period of March to May 2015. Data were analysed and interval regression demonstrated positive correlation between achieved education and wage level. When reaching a bachelor´s degree, an individual´s wage increase on average by 8 % compared to individuals with secondary education with graduation. If an individual reaches master degree, his wage increases on average by 21.9 % compared to the wage of individual who achieved the secondary education with graduation. The analysis has also proven the existence of gender pay gap. According to the results, women in Czech Republic have lower wages by 21.3 % compared to men´s. The study also discusses the achievement of higher education for individuals older than 26 years. Regression analysis showed that obtaining bachelor education for this group has higher yield (14.4 %) than in the analysis of the whole data set. Conversely, obtaining master degree has for this group lower profitability (17.3 %). Part of this thesis was also to calculate the return on investment in higher education. Using the method of internal rate of return, it was found out that the return on investment is 8.3 %