Economic Benefits Of Postsecondary Education for Hispanics / Latinos

“New rules” of the workforce and how they affect Hispanics / Latinos

December  2,  2015  2:00  pm  ET  #CEWEquity  #FutureReady                                                      #ReachHigher        #HispanicEconomicSuccess        #HispanicFuture            #La9noEconomicSuccess          

Center  on  Educa9on  and  the  Workforce    Presenters  

Anthony  Carnevale    

Founder  &  Director  

Nicole  Smith    

Chief  Economist  

Jennifer  Landis-­‐Santos  Counselor  

Webinar  Moderator  

MISSION  OF  HIGHER  EDUCATION:  To  empower  individuals  to  live  fully  in  their  Dme,  free  from  economic  or  public  dependency  The  mission  of  higher  educaDon  endures  but  Dmes  change  …  and  higher  educaDon  is  changing  with  the  Dmes.  

72%

44% 41% 35%

12%

27% 27% 30%

16% 29% 32% 35%

1973 1992 2010 2020

Shar

e of

jobs

by

educ

atio

n re

quire

men

t, 19

73-2

020

(pro

ject

ed)

BA+ Some college/AA HS or less

Jobs  requiring  high  school  or  less  have  declined  from  72%  of  all  jobs  in  1973  to  41%  in  2010,  to  become  only  35%  in  2020.  

4  

Since  1983,  the  US  has  been  under-­‐producing  college  talent:  The  supply  of  college-­‐educated  workers  has  grown  by  1%  each  year,  while  demand  has  grown  

by  3%.  

College  supply  College  demand  

Baby  Boom  Surge  

5  

“New  Rules”  for    A  new  economy  

$973,000  

$1,304,000  

$1,547,000  

$1,727,000  

$2,268,000  

$2,671,000  

$3,252,000  

$3,648,000  

Less  than  HS  

High  school  diploma  

Some  college  

AA  

BA  

MA  

PhD  

Professional  

Life9me  earnings  by  educa9onal  a_ainment  (in  2009$)  

Workers  with  BAs  earn  $1  million  more  than  high  school-­‐educated  workers  over  a  lifeDme.  

7  

Rule  #1:  More  educa9on  is  usually  is  be_er  

 

Earnings of High School Educated

Worker Earnings of

Certificate Holder Certificate Premium Over High School

Hispanic Women $19,086 $26,911 41%

Hispanic Men $27,718 $39,914 44%

Hispanics receive the largest wage premium from certificates

Source:  Survey  of  Income  and  Program  ParDcipaDon  

Rule  #2  :  In  some  cases  less  educa9on  is  worth  more  

ConDnued  …  

9  

28%  of  AAs  earn  more  than  the  median  BA    44%  of  people  with  BA’s  earn  more  than  the  average  person  with  a  graduate  degree    

Rule  #2  :  In  some  cases  less  educa9on  is  worth  more  

10  

Rule  #3:  What  you  make  depends  on  what  you  take  

60,000  

57,000  

55,000  

65,000  

85,000  

70,000  

65,000  

62,000  

70,000  

80,000  

90,000  

80,000  

80,000  

89,000  

99,000  

42,000  

42,000  

44,000  

47,000  

50,000  

50,000  

50,000  

50,000  

50,000  

55,000  

59,000  

60,000  

60,000  

70,000  

75,000  

0   20,000   40,000   60,000   80,000   100,000   120,000  

Psycology  and  Social  Work  

EducaDon  

Arts  

HumaniDes  and  Liberal  Arts  

Biology  and  Life  Science  

Law  and  Public  Policy  

Industrial  Arts  and  Consumer  Services  

CommunicaDons  and  Journalism  

Agriculture  and  Natural  Resources  

Social  Science  

Physical  Sciences  

Health  

Business  

Computer  and  MathemaDcs  

Engineering  MEDIAN  EARNINGS  BY  MAJOR  GROUP*  

Median  Earnings  for  those  with  only  BA  Median  Earnings  for  those  with  Graduate  Degree  

*Full  %me,  full  year  workers  with  a  terminal  Bachelor's  

Rule  #  4:  Where  you  go  does  ma_er  

“New  Rules”  are  especially  hard  on  First  genera9on  students    

•  They  have  the  least  resources  –  make  most  mistakes  and  can  take  longer  to  figure  things  out  compared  to  peers  who  have  financial  support  from  families  

•  “Culture  shock”  at  some  insDtuDons,  distance  from  family  

•  Internalized  stereotypes  and  struggles  with  self-­‐confidence  

A_ainment  rates  have  improved  drama9cally    but  s9ll  lag  na9onal  averages  

•  High  school  dropout  rates  is  sDll  14%  for  Hispanics  (compared  to  8%  for  African  Americans  and  5%  for  whites)  

•  Only  13%  of  Hispanics  25  years  old  and  above  have  a  BA  or  graduate  degree  (compared  32%  of  all  US  Americans)  

Underemployment    The  more  educaDon  the  less  unequal  the  races  are  in  

underemployment  and  unemployment                    High  School              BA  

As  educa9on  rises,  racial  dispari9es  are  less  visible  

Underemployment  rates  2008  -­‐  2015  HISPANIC  RATE:  14.4%    WHITE  RATE:  10.4%    

Underemployment  rates  2008  -­‐  2015  HISPANIC  RATE:  8.4%    WHITE  RATE:  5.2%    

Interconnec9vity  of  various  competencies  (cogni9ve  and  non-­‐cogni9ve)    is  required  for  success  in  the  workforce.      

Moving  Forward    

Judgment and decision making

Active Listening

Critical Thinking

Oral and written comprehension

Problem sensitivity

Help  students  develop  21st  century  skills:    

Customer and personal service

Deductive reasoning

Mathematics

Monitoring

Social perceptiveness

Help  students  ask  cri9cal  ques9ons  about  where  they  go  and  what  they  study  in  order  to  avoid  debt  and  

underemployment  Please  share  via  social  media  or  post  in  public  places  as  a  community  resource.   Also  available  in  Spanish  

Disponible  en  Español  

Your  input  shapes  our  future  projects    

Please  fill  out  brief  survey:  hgps://www.surveymonkey.com/r/GN8QLMY    

Ques9ons    and    

Answers  

#FutureReady            #ReachHigher        #HispanicEconomicSuccess        #HispanicFuture        #La9noEconomicSuccess        

For  more  informa9on:  Visit: https://cew.georgetown.edu/cew-reports/equity/

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