April 1, 2016 David Dodson President, Building an Infrastructure of Opportunity in Mississippi

Today we will consider: What are the current patterns of economic mobility in Mississippi, and what levers can provide economic uplift broadly? Who in this region is stuck with limited economic opportunity, and who is on the path to success? How can young people growing up in this region access opportunity and participate in future prosperity?

How many of you believe that where a person starts in life shouldn’t determine where they end up?

The American Dream

Source: Equality of Opportunity Project The American Dream is broken

Chances if born at bottom  70% 63%  Source: The Pew Charitable Trusts

Growth and Low Mobility The paradox of the metro South, 100 Largest Metros Sources: Forbes, Equality of Opportunity Project, Trulia, Brookings, and U.S. Census Bureau Forbes Best for Business Mobility Poverty Rate Increase in Poverty Since 2000 Raleigh, NC %96.8% Nashville, TN %66.7% Charlotte, NC %97.4% Dallas, TX %64.4% Atlanta, GA %89.9% New Orleans, LA %-14.3% Baton Rouge, LA %9.2% Memphis, TN %31.8% Birmingham, AL %20.3%

Economic Mobility in Gulfport What are the chances a child raised in a given quintile of the income distribution will move to another quintile as an adult in the Gulfport area? Source: Equality of Opportunity Project

Economic Mobility in Jackson What are the chances a child raised in a given quintile of the income distribution will move to another quintile as an adult in the Jackson area? Source: Equality of Opportunity Project

Economic Mobility in Tupelo What are the chances a child raised in a given quintile of the income distribution will move to another quintile as an adult in the Tupelo area? Source: Equality of Opportunity Project

How do mobility outcomes change with a postsecondary credential?

Education makes a difference 47% 26% 37% 10% 16% 17% 10% 8% 3% No Postsecondary Credential Postsecondary Credential Source: The Pew Charitable Trusts

What keeps people stuck in place?

Residential segregation Income inequality Local school quality Family structure Social capital Five factors that keep people stuck Source: Equality of Opportunity Project

Residential Segregation Overall economic segregation index Source: Martin Prosperity Institute

Residential Segregation Percentage of the population under the poverty line living in high-poverty neighborhoods, U.S. Source: The Century Foundation using U.S. Census Bureau American Community Survey data

How do mobility outcomes change with a postsecondary credential? Residential Segregation: Race and Ethnicity Source: Dustin Cable, UVA’s Weldon Cooper Center for Public Service

Income Inequality Annual growth rate of real income across family income distribution Source: Alan Krueger, Chairman of the Council of Economic Advisers

“Inequality would not be a problem if upward mobility were strong in America.” ~Robert Reich, former U.S. Secretary of Labor

Family Structure Getting by on one income, 2015 Jackson MSA Hourly Living Wage, One Adult and One Child$20.38 Median Hourly Earnings, all Occupations$17.90 Percent of Jobs with Median Hourly Earnings Above Hourly Living Wage ($20.38) 27.8% Sources: MIT Living Wage Project and EMSI Q Data Set. EMSI occupation employment data are based on final EMSI industry data and final EMSI staffing patterns. Wage estimates are based on Occupational Employment Statistics (QCEW and Non-QCEW Employees classes of worker) and the American Community Survey (Self-Employed). Occupational wage estimates also affected by county-level EMSI earnings by industry. Greenville MSA Hourly Living Wage, One Adult and One Child$19.40 Median Hourly Earnings, all Occupations$15.23 Percent of Jobs with Median Hourly Earnings Above Hourly Living Wage ($19.40) 17%

Source: National Equity Atlas using data from the National Center for Education Statistics Note: Chart shows the percentage of students in each group who are attending public schools by school poverty level. School poverty level is measured by the share of students eligible for free- or reduced-price lunch (FRPL). Local School Quality Percent of students by school poverty level: Jackson Metro Area, 2014

Social Capital Clustering and Fragmenting Bill Bishop’s The Big Sort: We’re increasingly living in “balkanised communities whose inhabitants find other Americans to be culturally incomprehensible.” Bonding, bridging, and linking social capital Ambassador James Joseph: Smaller communities of “meaning and memory” Experiential and economic clustering/isolation

PreparationConnectionEntry ProgressCompletion Family- Supporting Employment Higher education’s role in the system Based on a Bill and Melinda Gates Foundation model

Culture Cultural Messages & Media Representation Public Policies Institutions & Organizations Families History Economics Politics Race & Ethnicity Geography Transportation The inside game and the outside game

Questions?

Lillian and Norris

What’s your family’s mobility story?

The Path to Possibility Prospects for young people are widely variable, depending on the circumstances of their birth, the inclusiveness of their communities, the dynamism of the economies in which they function, and the quality of the education and workforce systems that serve them. How do we make sure all of these factors are consistent in the lives of young people so that those who start at the bottom of the income ladder can rise and thrive?

Consists of the systems and supports needed to boost young people to higher rungs on the ladder of economic and personal advancement Requires active leadership by employers, education systems, community-based organizations, policy makers, civic and neighborhood leaders, philanthropy, and young people themselves Is rooted in a common strategic vision of aims and outcomes for education and training systems The Infrastructure of Opportunity

Calls for a data-driven approach to analysis, strategy, and evaluation and takes advantage of local assets Should be as pervasive and reliable as the physical infrastructure of roads and water lines The Infrastructure of Opportunity

Challenge A region that as recently as 1990 had a deep reservoir of well-paying manufacturing jobs, but has suffered from economic decline with the demise of traditional manufacturing. Response Marshalling significant philanthropic resources to implant a series of education and talent development strategies, including Say YES to Education with $28 million raised in local funds. Greensboro, N.C.

Challenge High-growth city with talent pipeline that is disconnected from local labor force, leaving local youth on the sidelines of opportunity. Response Made in Durham: an employer-led strategy to align local resources, link data systems, and create secondary to postsecondary career pathways with seamless, work-based learning opportunities with the support of private philanthropy, employer capital, and public funding. Durham, N.C.

Challenge Both regions are hubs of high-growth industries, but many youth are left on the fringes of the economy, due to geographic isolation, intergenerational poverty, and fragmented pathways from education to employment. Response Bold long-term visions and public/private partnerships shepherded by local leaders who are committed to making sure all young people are equipped with the information and work experience they need to participate in and sustain those high-growth, living wage sectors. Greenville, S.C./Chattanooga, T.N.

What would it look like if mobility was higher in Mississippi? What would it take to get there? What would it take to see these patterns change?

What are you doing now that will help increase mobility? What could you be doing more of to increase mobility?

Source: Equality of Opportunity Project The American Dream is broken

The American Dream

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