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Education and Labor Market
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Since the late 1970s, social science researchers, the media, private foundations, and policymakers have directed considerable attention to the labor market problems of young adults and their families. Most of this attention has focused on high school dropouts, the poor, minorities, and inner-city youth. But an equally troubling—and broader—problem has received comparatively less notice: the steep and sustained decline since 1973 in the real (inflation-adjusted) earnings of young men and women generally. Even adjusting for demographic and socioeconomic characteristics, the labor market problems of young workers are disproportionately severe—they include higher than average unemployment and relatively low earnings when employed. This sustained drop in earnings has been especially dramatic for young adults with no postsecondary school education.
Most proposed remedies have emphasized the quality of the labor supply. But improving education and training, while often worthwhile and necessary, is not by itself sufficient to raise earnings. If this downward trend, which has persisted through recession and recovery alike, is to be reversed, then policymakers and educators must address the demand side as well as the supply side. Raising young adult wages will require not only better academic performance, training, apprenticeships, and school-to-work programs, but also full-employment policies, changes in the configuration of jobs and careers, and larger young adult union membership. Prior to 1973, the annual and weekly earnings of both young adults and older workers had been improving markedly. Between 1967 (the year the Bureau of Labor Statistics began tracking weekly earnings of wage and salary workers) and 1973, the real median weekly earnings of 16- to 24-year-olds rose by approx i mately 8 percent. Since 1973, however, the earnings of young adults have fallen almost continuously. Between 1973 and 1979, the weekly earnings of young men working full time fell by 7 percent. Young men experienced a 19 percent decline in earnings (a real value of $72 per week) between 1979 and 1989. This decline cannot be attributed solely to business cycle contractions. About half of the 19 percent decline did take place during the recessionary period of 1979-1982. But between 1982 and 1989, a period of strong overall job growth, the weekly earnings of young men fell by another $33, or 9 percent. Earnings declined still more between 1989 and 1994, dropping yet another 9 percent. The result of all this decline? A young man under 25 years of age employed full time in 1994 earned 31 percent less per week than what his same-aged counterpart earned in 1973.
The second chapter of this book advocates students to attend college, even if they must take on a moderate amount of student loan debt. They give statistics showing the tremendous gap in wages between a college graduate and a non-college graduate. The third chapter of this book argues the opposite viewpoint of the second chapter. The author states that the cost of college today is too high and that there are too many college graduates flooding the job market causing many of them to go unemployed or seek low level jobs that do not pay enough to pay off their student loans. Both of these chapters will help me to show the two main ...
A majority of people believe that graduating from college will result in a well-paying job. Unfortunately, a degree will not secure a job for many graduates. In the U.S., the jobless rate for college graduates in 2012 was 7.7 percent, and has further increased in the past five years(Robinson). With such a large pool of unemployed citizens for employers to choose from, recent graduates are facing fewer opportunities for work due to little or no previous work experience(Robinson). Although many graduates are faced with unemployment, the majority do receive the opportunity to work. Sadly, many must work jobs they do not enjoy for salaries that make it difficult to make ends meet(Debate). Students are faced with mortgage-sized debts upon graduation, making it difficult for them to start businesses, buy cars or houses, or make other investments that would better the
While college may be initially uneconomical, evidence from a 1959 census shows a “three-fourths of earning difference” between those who graduated from college and those who merely received a high school diploma (Weisbrod et al 495). Weisbrod and Karpoff acknowledge the high cost of college in America, but assert the benefits of a college degree will more than reimburse a person in the long run, therefore the initial cost of attending a college is worthwhile. (Weisbrod et. al). Furthermore, this indicates only “one-fourth of the earnings differences are attributed...to non-schooling factors”, which proves the significant role college plays in determining the future earnings of an individual (Weisbrod et. al 497). College appears to be the most influential factor in regards to a person's earnings, therefore according to Weisbrod and Karpoff, college is necessary for a person who wishes to obtain a higher expected income. Even students who attend mediocre to below-average colleges will receive “a lifetime income that is [around] 10 percent lower ...than that which someone at one of the best schools can expect” (Weisbrod et. al 497). Weisbrod and Karpoff contend even low-tier colleges result in higher earnings, therefore a student should strive to attend any college regardless of the
One of the major problems Lewis and Zaidane’s argue in their piece is that fifty-three percent of graduates are unemployed (587). People are attending college, accumulating debt, and are not able to start careers. Recently, a student graduated with a degree in marketing and because of low unemployment rate he had to work as a bartender. More people will have degrees than jobs in the next ten years.
Education can be somewhat helpful to people headed toward poverty or homelessness. However, new research is showing that education is needed but alone it is simply not enough to help people get jobs and help their situation. Along with their education, the poor need job training in the area of work they are looking towards (Bernstein 1). The training along with the mandatory education helps people excel in something they are good at and improve their job chances. The people who do get their education and job training then run into another roadblock. In the U.S. economy, typically low-wage jobs are more abundant. In fact, the low-wage sector of the economy is the part that is projected to grow the most. In the next ten years, thirty new low-wages jobs are expected to be added to the work force. Of those thirty, half of the new jobs will require very little training (Bernstein 3). This results in a lower quality of work and less pay. Many people on the verge of poverty occupy these low paying job...
People with various degrees are finding it harder to get jobs where they would like to work. Even the increased rate of layoffs for the Tech industry, which usually include packages for an estimated amount of time off, has risen as well. There are programs that assist these situations such as welfare. “The Welfare Act of 1996 was designed to move people from welfare to jobs. According to a letter to the Chicago Tribune, once they got jobs, they lost public assistance,” said Arloa Sutter, executive director of Breakthrough Urban Ministries. She has firsthand knowledge about the struggle of homelessness because she runs two Chicago homeless shelters. Then, when they lose the jobs they once had, they find it difficult to qualify for the assistance they need again under the new regulations that have been put in place. People who are considered the “lower-class” are not the people to be worried about, even though they may seem to be more prone to poverty in their lives. These individuals still have the availability of all the services and programs which allow them to get help. The “middle-class” people are expected to be closer to poverty because they are said to make too much money. The amount that is required for financial aid in college is below $10,000 annually, but by then the person is already expected to be homeless and in debt on that salary. The Temporary Assistance for Needy Families
Everyone would think getting an education is easy so you wouldn’t need a minimum wage job, but it isn’t. College tuition has gone up and so have private schools and catholic schools. Some private schools are at the cost of some colleges. Education has become very expensive, that people decide not to attend college and rather work a low paying job to get by. Some young adults are responsible for college payments if they want to further their education to make something of themselves because their parents do not have the financial funds to pay for it. People may think that parents just don’t want to pay for it, but that’s not the case, they just cannot afford it on their minimum wage job so young adults are forced to get jobs in areas such as department and grocery stores, or
What gives a life meaning? Some might say that family, friends, religious values, or even money give meaning to their life, but what about the people who do not have any of these things? In Earnest Hemingway’s short story “A Clean, Well-Lighted Place,” two characters are portrayed as being in despair. These older gentlemen have explicit reasons for their grief however. Hemingway presents the central theme of despair throughout the story by the use of dialogue, images, and multiple viewpoints. Through the use of these three literary tools, Hemingway is able to reiterate that without family, friends, or values life is ultimately meaningless.
An interesting facet of the American job market has to do with a direct connection to W.W.II - the "baby boom generation." (those born between 1947-57). A noticeable increase in enrollment in public and elementary schools grew steadily from 1964 and peaked at 46 million in 1971 due to this large group of children entering school. As they graduated or left school, the rate declined steadily for 13 years, but the rate again grew in 1984 when the children of those baby boomers, the "baby boomlets," came of school age. Although it has not reached the peak level of 1971, by 1998 their projected enrollment is expected to surpass this number (National Current Employment Statistics.
One major reason millenials are not projected to do as well as the current Generation X is a financial one. According to David Leonhardt of the New York Times, “The typical American household made less money last year than the typical household made a full decade ago,” while the “median household [income] fell to $50,303 last year [2009] from $52,163 in 2007.” (Leonhardt, par 1-2). This is a major problem, considering the cost of living and inflation are continuously on the rise. Millenials are the most educated generation in American History. This may sound like a fantastic prospect for the future; however, the average debt for graduates of public (notice this is not a statistic for private schools, which are even more costly) universities doubled between 1996 and 2006. In f...
In a recap, the three policies introduced, the Unemployment Reformation Act of 2059, the Infinite Education Opportunities Program Act, and the Unity Tax, will be a vital part in restoring and surpassing expectations for decreasing the percentage of Americans unemployed by ten to fifteen percent within the next six to eight months. I believe that with these policies the chances of a recession will not occur for a long period of time. For that matter, a recession may not occur again depending on how successful the unemployment plans develop. Nevertheless, I predict that by the year 2109 the employment rate for Americans will reach eighty-three to eighty-five percent.
The younger workers are heavily affected by low wages. Among those under thirty years, the share of low pay is twice as high as in the 30-49 age groups. They represent 45% of low wages for less than 30% of all employees. If the w...
The literature agrees that although there are other options for young adults to choose as a living arrangement, a growing amount are electing to live with parents for conditions related to their employment status (Biggart, 2006). The transition of moving away from the home of parents has become more difficult in light of the recent recession. The existing unemployment rate for young adults intensifies the struggle when attempting to pursue independence and obtain individualism (Warner, 2012). The rate of unemployment for the 18 – 31 age groups nearly doubles that of the next age group comprised of their senior cohort. According to the U.S. Census Bureau, 63% of the stated young adult age groups were not employed in 2012, with this being the highest percentage in forty years (2012). Most parents have a very strong influence on the course of the career their children chooses to follow. Finding employment that will support a household with established debt from college and other growing expenses has proven to be a real ...
Kahn, Lisa B. 2010. “The Long-Term Labor Market Consequences of Graduating from College in a Bad Economy.”
Unemployment has always been something that Americans have worried about since the great depression in which one in every four people was unemployed. High unemployment has an impact on every one even those whom are still currently employed. For example if the unemployment rate is particular high then even those with jobs get worried. Unemployment is also separated in to distinct categories base on which group is the focus of the study. The categories can be by race, age or location, for example the unemployment rate of those between the age of sixty and sixty-five could be compared those between the ages of thirty and thirty-five. These categories allow economist to see which groups are the best and which groups are worst off. One group particularly bad off is the age group referred to as teenagers. This paper is going to focus on how teenage unemployment affects the economy and what possible solutions there are.