Education &Technology Spotswood Presentation Week 6

and the prospects aren’t looking so hot. Autor, D. H. (2014). Skills, education, and the rise of earnings inequality among the "other 99 percent" It isn’t equal, folks, and the prospects aren’t looking so hot.

Rise in educational premiums and earnings inequality Autor, D. H. (2014). Skills, education, and the rise of earnings inequality among the "other 99 percent" “The return to skill” – the wage gap between people w/ and w/o a college degree Rise in educational premiums and earnings inequality Differential gaps from 60-70% to 95% Hard to quantify how this rise relates to income inequality This isn’t just across the 1 %, but across the income spectrum Hard to quantify, but some

Supply and demand Attendance soared until ~midish 1970s* The value of a degree increased 1981- average college grad earned 48%> 1990, 72%> In 200, 90%> 2005, 97%> Other reserachers say the increase slowed before this, like in the 1970s

But is college worth it? Like we will see with Hout, college is so worth it! But college is[n’t] for everyone We need some inequality, for motivational purposes, of course Lifetime earning wage gap high school college -3% for college attendance

Of course it is! Light blue = postbac Orange= Bachelor’s Green= some college Red= high school grad Dark blue= < high school But what about mobility? Increased inequality doesn’t mean decreased mobility

But the bad news…The widening wage/earnings gap –not just college premium 1980-2012 College grads Non-college grads Real wages fell 11% with high school diploma 22% without high school diploma 3 explanations Globalization Destabilized unions Humans replaced by technology Real wages increased 20- 56%

So now what? Rising inequality… not just the market Declining value of minimum wage Diminished power of unions and collective bargaining International trade Tax laws Policy should focus Increasing high quality jobs Increasing basic standard of living Increase the populations’ skill level Reduce the “skill premium,” reduce inequality

"질문 있어?"

Hout: Social and economic returns to college education in the United States Why go to college? Healthier Better job opportunities, including conditions and wages Better citizens Vote more Incarcerated less Lower divorce rates Happier

Relationship between college and success If college is so great, so what? Who gets to go? Who does it help the most? What about it being so damn expensive? Ability (10th grade predictor) Protective benefits: The Great Recession College graduates were unemployed less When unemployed, for short periods of time More desirable jobs and better money Greater benefits for those less likely to attend (negative selection)

Relationship between college and success If college is so great, so what? Who gets to go? Who does it help the most? What about it being so damn expensive? Of course it’s worth it! Selectivity matters Any is better than none If your parents went… You’ll be such an awesome person, even those around you will be affected What a boon to your community!

It’s Good for you! Hout’s conclusion? College is good for you go. Go more. Go longer. Be amazing… …ok, that last was me, but the point remains.

Questions, comments, or concerns?

Kane, T. J. (2004). College-going and inequality Widening gaps in college enrollment Family income relates to college attendance-- the gap is growing Higher income rate growing faster than lower income African American rate growing, but not as fast as white As tuition increases by $1000, enrolment drops by 5-6% Pell doesn’t increase enrollment, other programs do No good literature regarding borrowing constraints Public subsidies help all students, so it is justifiable Despite increased enrollment, college graduates entering work force will slow

Kim, C. , Tamborini, C. , & Sakamoto, A. (2015) Kim, C., Tamborini, C., & Sakamoto, A. (2015). Field of study in college and lifetime earnings in the United States. The relationship between education and lifelong earning by field of study Longitudinal study of Survey of Income and Program Participation education module matched to tax returns Gap between various bachelor’s degree holders was greater than the gap between college graduates and those with only high school diplomas Not all degrees are created equal Education degree< less return STEM> greater return Women seemed to benefit most Financial burden of college pays off for everyone!

References Autor, D. H. (2014). Skills, education, and the rise of earnings inequality among the "other 99 percent". Science (New York, N.Y.), 344(6186), 843-851. doi:10.1126/science.1251868 Hout, M. (2012). Social and economic returns to college education in the United States. Annual Review of Sociology, 38, 379-400. Retrieved from http://0- www.jstor.org.libapp.emporia.edu/stable/23254601 Kane, T. J. (2004). College-going and inequality. In K. M. Neckerman (ed), Social inequality (310-353). Kim, C., Tamborini, C., & Sakamoto, A. (2015). Field of study in college and lifetime earnings in the United States. Sociology of Education, 88(4), 320-339.