The difference in income from work of individuals aged 25 to 64 years by level of education has decreased somewhat over the years. In 2009, individuals with upper secondary education had a 19% higher income from work than those with basic education. Ten years later, in 2019, the difference had dropped to 10%. At the same time the difference between the income from work for individuals with tertiary education and those with basic education went from 61% to 39% in ten years. During the same ten-year period, the number of individuals with tertiary education has increased proportionally while the number of those with basic education has decreased.
In this context, it could be noted that income from work has increased most for those with basic education or around 39% during this ten-year period, while income from work of individuals with upper secondary education has increased by 28% and tertiary education by 20%.
It should be taken into consideration that income from work is regardless of the working hours of individuals.
Income from work highest for individuals with tertiary education
A comparison of the median income from work in 2019 for the age group 25 to 64 years reveals that individuals with basic education had 5.6 million ISK per year in 2019 or 467 thousand ISK per month. In comparison, individuals with upper secondary education had 6.1 million ISK per year, or 10% higher income, and those with tertiary education around 7.8 million ISK or 39% higher income than those with basic education.
A focus on those with tertiary education shows that indivuals with a doctoral education, for example, had about 54% higher income from work than indiviuals with a bachelor‘s degree. It should, however, be taken into consideration that the groups compared can vary in size, e.g. around 1,500 individuals have attained an education on a doctoral level in the ages of 25 and 64 years but over 20 thousand a master‘s degree.
About the data
Income by the level of education is also published by age and sex and further breakdown of age groups has been added. This comprises total income as well as income from earnings, capital gains and disposable income, including other income and taxes. Results are based on individuals’ tax returns. Education is classified according to the International education classification ISCED 2011. Data on the highest level of education are preliminary data.