After age 25, people with college degrees earn more than those with only a high school education, all else being equal. Additionally, people with some college experience earn the same as high school graduates. The first model of educational attainment explains earnings better by giving more weight to highest qualification when determining compensation. This model assumes people with higher qualifications are more mature, skilled, and able to perform jobs, and age is indirectly a factor as higher qualifications take more years to attain, leading to better pay. Therefore, this model concludes that higher education or college degrees are a better fit than only a high school degree.

1. Consider the following facts. After the age of 25, persons with college degrees earn more than
persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons
with high school degrees earn the same as persons who have had some college training
Solution
First model of educational attainment explains better where highest qualification is given more
weightage in compensation payment.
This model assumes that a person with higher qualification is more mature, skilled and
thoughtful to do a particular job. Here, age is also indirectly used as criteria. Because, higher
qualification is achieved in higher side of years, which is converted in to better monetary
rewards.
So, this model concludes that higher education / college degrees are better fit in comparison to
people with high school degree only.