The Millenial Generation: Labor Market and Young Adult TTA

Changes over past 35 years  labor-saving technological changes labor-saving technological changes  two-thirds of the increased earnings inequality to technological innovation that favored skilled over unskilled workers.  increased globalization  declining unionization  failure of the minimum wage to keep up with inflation

New report by Pew

GROUPS  MILLENIAL (AFTER 1980)  YRS, 57% NON-HISPANIC WHITE  GENERATION X  34-49,61% NON-HISPANIC WHITE  BABY BOOM  50-68, 72% NON-HISPANIC WHITE  SILENT  69-86, 79% NON-HISPANIC WHITE

MARRIAGE

FACEBOOK FRIENDS

TRUSTING OF OTHERS

LIVE LIFE THEY WANT?

VIEWS THEMSLEVES

DIFFERENT VIEWS

ENVIRONMENTALIST

PARTY DIFFERENCE?

BELIEVE IN GOD?

Post WWII Labor Market  “Golden Age”-steady economic growth, rising real wage rates, and improved living standards  Ended by mid-1970  inequality in earnings and family incomes grew  some government safety net programs eroded.

Mid 1970’s labor changes  computerization and other forms of labor- saving technology  declines in the inflation-adjusted minimum wage  declining shares of workers covered by union contracts  Increased globalization  Especially hard on men with no more than high school degree.

Most benefits to educated

Worst is yet to come..  The severe recession that started in December 2007 and  Large declines in the value of homes and the net worth of famiies  parents’ declining net worth will require many to rely more on their own earnings and less on parental support.

Two major trends in past 30 years  declining economic status of those with at most a high school degree relative to those with a college degree or more  increasing economic status of women relative to men.

25-34 year olds-earnings by race and gender

Earnings by education

Earning less than $9 an hour

Employment rate of High School Grads

One reason for inequality  dramatic rise in incarceration rates for black men over the past three decades  negative effect of a criminal record on an employer’s willingness to hire.  accounts for an employment decline among black men of from 4 to 9 percentage points.

William Julius WilsonWilliam Julius Wilson…  young black males’ lower educational attainment (a “skills mismatch”),  their residential concentration in the inner city during an era when jobs were moving to the suburbs (a “spatial mismatch”),  Persisting employer racial discrimination, often reflected in how firms advertise for and recruit entry-level workers.

Increased Churning  Movements from employment to unemployment (involuntary job changes)  movements from one job to another (voluntary job changes), especially among younger workers.

Results of churning  shorter job tenure and job instability for young workers reduce wage growth employment opportunities in later adulthood  Postpone childbearing  can reduce the likelihood of independent living  makes purchasing a home or having a child a riskier decision  Churning more common among males and young people Churning more common among males and young people

Gender and Educational Attainment  Women’s gains attributable in part to their increased access to jobs, particularly managerial and  professional positions  Increased educational attainment  Went from being 7% less likely to grad in 1970’s to 7% more likely now

Quiet Revolution  In 1970’s women were secondary earners who worked if their families needed extra money  Now employment defines their “fundamental identity and societal worth.”

Changes  higher divorce rates easier access to contraception have shortened the portion of their adulthood that women spend as wives

Changes  Wage gap between high school and college graduates in their first seven years after entering the labor force has substantially widened.

Why Haven’t the Growing Returns to College Led More Men to Complete College?  Rising tuition costs and reductions in grants Rising tuition costs and reductions in grants

Forwarded message  From: President's Office ‪ ‬  Date: Fri, Mar 16, 2012 at 4:12 PM  Subject: Amherst's Comprehensive Fee for  To:  Dear Amherst Students and Families,  I write to inform you that the Board of Trustees has established $55,510 as Amherst College’s comprehensive fee for This figure represents a four percent increase over the current comprehensive fee.  The current annual cost of providing an Amherst education for each student is about $81,000, which means that the College must provide a substantial subsidy even to those students who do not receive financial aid. For its revenue, Amherst relies on: income from the endowment; annual giving by alumni, parents, and friends; and the comprehensive fee.  An Amherst education is expensive and requires significant sacrifice. It is hard to imagine a better investment for our students, and for the world that will benefit from their talents, contributions on many fronts, and their leadership in the years to come.  Yours,  Biddy Martin President

And yet  a $1,000 increase in college costs leads to about a 5 % decline in college enrollment.

Why women are delaying marriage  higher educational attainment and declining gender discrimination in the labor market

Living arrangements present  the share living with parents has grown 3 percentage points (from 15.1 to 18.2 percent),  The share living without a parent or spouse grew 26.3 points (from 13.6 to 39.6 percent).  The decline in the share of men who were married (from 71.3 to 42.3 percent) resulted in a greater share cohabiting, living with roommates, or living on their own.

Policies to improve  Increase federal minimum wage  falling real value of the minimum wage  set the minimum wage at 45 percent of the median wage of production workers  The Earned Income Tax Credit (EITC)  Reduce labor market discriminiation  Support Unions

Policies  Expanding Employment for Less-Educated Workers . A transitional jobs-of-last-resort program could reduce their employment instability

Policies  Investing over the Life Course to Increase Skills for Future Young Adults promote lifelong participation in educational programs More effective early childhood and K–12 educational policies would result in fewer high school dropouts and more college graduates in the next generation.

policies  raise high school graduation rates and skills a ensure that more earn community college degrees and certificates and four- year college degrees