1. Education &Technology
Spotswood Presentation Week 6

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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 %

8. 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

9. "질문 있어?"

10. 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

11. 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)

12. 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!

13. 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.

14. Questions, comments, or concerns?

15. 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

16. 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!

17. 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), doi: /science Hout, M. (2012). Social and economic returns to college education in the United States. Annual Review of Sociology, 38, Retrieved from Kane, T. J. (2004). College-going and inequality. In K. M. Neckerman (ed), Social inequality ( ). Kim, C., Tamborini, C., & Sakamoto, A. (2015). Field of study in college and lifetime earnings in the United States. Sociology of Education, 88(4),