Raising Incomes and Reducing Inequities via Higher Education

Those of us working in community colleges have long assumed that higher education propels students of modest means into the middle class and reduces income inequality.  In short, affordable, accessible higher education grows the economy and strengthens our democracy.

Now a new report entitled “The Uneducated American” from Georgetown University’s Center on Education and the Workforce provide the data that back up these understandings.  Demonstrated by the increasing pay gap between high school and college grads, this report shows that our economy suffers because insufficient numbers of US citizens are achieving college degrees.    If we increase the number of college grads, the authors argue, two things will happen: everyone's income (and the US economy) will go up and the income of HS grads will go up faster thus reducing income in-equality.  I encourage you to read the report at the link The Uneducated American .

To demonstrate that higher education is still of great value, even during the Great Recession, look at the chart below that shows unemployment by educational attainment. ( Chart from NY Times, 3/11/11).

COMMUNITY COLLEGE GRADS NEEDED FOR MIDDLE SKILL JOBS

So called middle skill jobs - those that require some college education or an associate degree - are in the news as policy makers and researchers look at the future of the American economy.  These jobs include positions such as network administrators, nurses, physical therapy assistants, computer numerical controlled (CNC) machine operators, emergency medical technicians (EMTs), respiratory therapists.  


While unemployment continues to plague the United States and young people, even those with college credentials, struggle to find jobs, the future may look very different as labor shortages may develop.  Why?  Because our population growth will slow, and the new economy will require more education.  Meanwhile this generation appears to be falling behind the college attainment of their parents just when more education is predicted to be necessary for a decent paying career.  For documentation that New England will suffer a shortage of labor in middle skills jobs see a recent report of the Federal Bank at the link:


Federal Reserve Brief on Middle Skill Jobs in New England

What should be done?  We are missing a golden opportunity to encourage additional post-secondary education.  Because of high unemployment many young adults have the time to go to college - especially community college.  But state and federal government are making it harder for them to attend by withdrawing support for public higher education forcing colleges to raise charges on students.  If we are to secure our economic future we should, as a society, invest in that future.  That means not scrimping on the college education of our youth.