The price system works marvelously to allocate resources in our society, but in higher education, prices often do not reflect the true value society places on resource usage, as they are often distorted by a variety of policies. The price of elite colleges, for example, is actually well below what demand-and-supply conditions would warrant, while the price of college in general has been distorted upward by extravagant federal student financial-assistance programs (although some would argue with that contention).
But labor markets are largely free of these distortions, and very recent evidence from them on the whole supports the hypothesis that the huge gains from obtaining a bachelor’s degree may be diminishing for a simple reason: Supply has been rising faster than demand for college graduates.
The large differential between the earnings of high-school and college graduates is often cited as proof that college has a high payoff. Elsewhere I have argued that this is not an entirely useful comparison, since the behavioral traits of high-school graduates are markedly different than those who complete college. Moreover, those differentials have actually narrowed some in recent years. Compare 2008 and 2010, looking at the average earnings of those working full-time, year-round. For males with a high-school education, earnings rose 1.87 percent, while for those with bachelor’s degrees, they fell4.17 percent (for those with master’s degrees, earnings were essentially unchanged). Those with a less than 9th-grade education fared better in terms of earnings change than those with degrees, whether associate, bachelor’s, or master’s. In inflation-adjusted terms, the earnings of those with bachelor’s degrees on average fell well over five percent (and over $3,500 in absolute dollars) at a time when college costs were rising at least as much. (Read more.)
CTE State Directors- Legislative Update: Drop in Per Pupil Spending for Public Elementary and Secondary Systems May 24, 2013
- McKinsey Report Outlines Common Elements of Innovative Programs to Close the Skills Gap May 24, 2013
- Career Clusters® Institute Blog Series: Reviewing and Using Eight Key Indicators of Rigorous Career Technical Education to Improve Programs of Study May 24, 2013
- Why CTE?
- Education notebook | Conway academy offers summer look at careers – MyrtleBeachOnline.com May 24, 2013
- Fire science – Times Herald-Record May 24, 2013
- Statement from U.S. Secretary of Education Arne Duncan on the Boy Scouts of America’s Decision to No Longer Deny Membership to Youth on the Basis of Sexual Orientation May 24, 2013
- Ed Week: Beyond School
- Support Rises for Expanded Learning May 14, 2013
- New Summer Learning Grants Available May 10, 2013
- Summer Learning Revamped May 6, 2013
- SmartBrief on EdTech
- Public Policy Institute of California
- COMMENTARY: Parents Weigh School Fundingand Goals April 29, 2013
- EVENT: The James Irvine Foundation Briefing SeriesCollege Readiness as a Graduation Requirement: An Assessment ofSan Diego's Challenges April 25, 2013
- PUBLICATION: College Readiness as a Graduation Requirement: An Assessment of San Diegos Challenges April 24, 2013
- Edutopia
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- Do BYOD Programs Encourage Bullying? May 24, 2013
- A Curriculum of Concerns May 23, 2013
- Professor Van Ry
- U.S. Campuses Wrestle With Safety Perceptions May 24, 2013
- Pushing a Data-Driven Culture on One Campus May 23, 2013
- USC Announces $70 Million Gift by Dr. Dre and Jimmy Iovine May 23, 2013
The College-Graduate Glut: Evidence From Labor Markets
July 11, 2012 — Veronica Van RyA State-by-State Report Card on Public Postsecondary Education
July 10, 2012 — Veronica Van RyThe Institute for a Competitive Workforce, a division of the United States Chamber of Commerce, released a report card for each state based on their performance in several categories:
- Student Access and Success
- Efficiency and Cost Effectiveness
- Meeting Labor Market Demand
- Transparency and Accountability
- Policies
- Innovation
The researchers for the national report card hope that state leaders will use the information garnered through reading this report to better craft the reform agenda and to support the needs of students. The report not only offers detailed information about each state’s performance, but also offers policymakers suggestions into improving the completion outcomes of students that attend college.
Read the full report:
Leaders and Laggards: A State-by-State Report Card on Postsecondary Education
1 in 2 New Graduates Are Jobless or Underemployed
April 23, 2012 — Veronica Van RyThe college class of 2012 is in for a rude welcome to the world of work.
A weak labor market already has left half of young college graduates either jobless or underemployed in positions that don’t fully use their skills and knowledge.
Young adults with bachelor’s degrees are increasingly scraping by in lower-wage jobs — waiter or waitress, bartender, retail clerk or receptionist, for example — and that’s confounding their hopes a degree would pay off despite higher tuition and mounting student loans.
An analysis of government data conducted for The Associated Press lays bare the highly uneven prospects for holders of bachelor’s degrees.
Opportunities for college graduates vary widely.
While there’s strong demand in science, education and health fields, arts and humanities flounder. Median wages for those with bachelor’s degrees are down from 2000, hit by technological changes that are eliminating midlevel jobs such as bank tellers. Most future job openings are projected to be in lower-skilled positions such as home health aides, who can provide personalized attention as the U.S. population ages.
Taking underemployment into consideration, the job prospects for bachelor’s degree holders fell last year to the lowest level in more than a decade.
“I don’t even know what I’m looking for,” says Michael Bledsoe, who described months of fruitless job searches as he served customers at a Seattle coffeehouse. The 23-year-old graduated in 2010 with a creative writing degree.
Initially hopeful that his college education would create opportunities, Bledsoe languished for three months before finally taking a job as a barista, a position he has held for the last two years. In the beginning he sent three or four resumes day. But, Bledsoe said, employers questioned his lack of experience or the practical worth of his major. Now he sends a resume once every two weeks or so. (Read more.)
Why Companies Aren’t Getting the Employees They Need
November 9, 2011 — Veronica Van RyEverybody’s heard the complaints about recruiting lately.
Even with unemployment hovering around 9%, companies are grousing that they can’t find skilled workers, and filling a job can take months of hunting.
Employers are quick to lay blame. Schools aren’t giving kids the right kind of training. The government isn’t letting in enough high-skill immigrants. The list goes on and on.
But I believe that the real culprits are the employers themselves.
With an abundance of workers to choose from, employers are demanding more of job candidates than ever before. They want prospective workers to be able to fill a role right away, without any training or ramp-up time.
In other words, to get a job, you have to have that job already. It’s a Catch-22 situation for workers—and it’s hurting companies and the economy. (Read more.)
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Obama Supports Initiative to Increase Manufacturing Job Training
June 9, 2011 — Veronica Van RyPresident Barack Obama announced his support [yesterday] for expanding Skills for America’s Future, an industry-led initiative to partner community colleges and businesses to meet the demands of the labor market. Specifically, Obama stressed the importance of increasing job training in the manufacturing sector, an area that he views as critical to strengthening and rebuilding the economy.
Plans to increase the reach of Skills for America’s Future include helping 500,000 community college students to earn industry-recognized credentials for manufacturing jobs, and providing a website to connect job-seekers to businesses. The President added that more high school students will have an opportunity to earn college credits. The initiative would benefit industry as well as students by addressing the current mismatch between skills earned by students and those required to fill vacant positions.
Applause erupted from an audience filled with business and non-profit leaders when Obama pushed Congress to reauthorize the Workforce Investment Act (WIA). He wants the new legislation to build on innovative and effective programs, and to eliminate ineffective programs.
“Right now, there are people across America with talents just waiting to be tapped, sparks waiting to be lit,” Obama said. “Our job is to light them and there’s no time to lose when we’ve got folks looking for work, when we’ve got companies that need to stay competitive in this 21st Century economy, and when we know that we’ve got to rebuild the middle class. A lot of that’s going to have to do with how well we do in manufacturing and how well we do in jobs that are related to making products here in the United States of America.”
Career Technical Education (CTE) offers tremendous opportunities for and access to training in the manufacturing sector. Industry-verified Knowledge and Skills Statements ensure that students graduate from CTE programs with the skills demanded by industry.
via NASDCTEC. Also of interest: Community Colleges Critical For Job Creation, Says Obama via NEA Today.
