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Event Briefing Slides – Higher Education as a Driver of Economic Mobility

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object(Timber\Post)#3742 (44) { ["ImageClass"]=> string(12) "Timber\Image" ["PostClass"]=> string(11) "Timber\Post" ["TermClass"]=> string(11) "Timber\Term" ["object_type"]=> string(4) "post" ["custom"]=> array(5) { ["_wp_attached_file"]=> string(53) "eventbriefing_highereducationeconomicmobility1218.pdf" ["wpmf_size"]=> string(6) "600378" ["wpmf_filetype"]=> string(3) "pdf" ["wpmf_order"]=> string(1) "0" ["searchwp_content"]=> string(7189) "Higher Education as a Driver of Economic Mobility December 12, 2018 Hans Johnson, Marisol Cuellar Mejia, Sarah Bohn Supported with funding from the College Futures Foundation and the Sutton Family Fund California’s economy is strong Unemployment rate (%) 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Source: Bureau of Labor Statistics. U.S. California 2 Economic success is tied to educational attainment Median annual salary and wage income ($) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1990 2000 2010 Bachelorʼs degree or higher Associate degree Some college HS graduate No HS diploma 2016 3 Higher education confers multiple benefits  A college degree helps people access a host of economic and social benefits—including upward mobility  But too few Californians are earning college degrees  California must build on recent progress and become a global leader, once again, in broad-based college graduation 4 Outline  Value of a college degree  Falling short in college attainment  Progress and next steps 5 Higher levels of educational attainment confer higher wage premiums Wage premium relative to HS graduates (%) 100 80 60 40 29 21 20 0 -20 -22 -40 No HS diploma Some college Associate degree 91 73 62 Bachelor's Bachelor's Advanced degree only degree or higher degree 6 College-educated Californians are much more likely to be employed… Labor force participation (%) 100 80 60 40 20 0 No HS HS Some Associate Bachelor's diploma graduate college degree degree or higher Unemployment rate (%) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 No HS HS Some Associate Bachelor's diploma graduate college degree degree or higher 7 …and are less likely to be in poverty or reliant on government safety net benefits Poverty rate (%) 40 35 30 25 20 15 10 5 0 No HS HS Some diploma graduate college Source: California Poverty Measure. Associate Bachelor's degree degree or higher Social safety net recipient (%) 50 40 30 20 10 0 No HS HS Some Associate Bachelor's diploma graduate college degree degree or higher 8 Outline  Value of a college degree  Falling short in college attainment  Progress and next steps 9 California ranks last in generational progress on college completion Difference in the share of college graduates among older and younger adults (% pts) 35 30 25 20 15 10 5 0 Source: Education at a Glance (OECD, 2015). 10 Generational progress in earnings has also declined Share of Californians earning more than their parents (%) 100 89 80 60 71 58 40 20 0 1940 1950 1960 Source: Chetty et al., The Fading American Dream (Opportunity Insights, 2016). 57 1970 49 1980 11 Only a third of young adults born in California have a college degree Share of California-born young adults with a bachelor’s degree (%) 70 60 50 40 30 20 10 0 All Asian American White African American Latino 12 Why are Californians falling behind in college attainment?  Equity gaps are a big challenge  At each step to a college degree, students from socioeconomically disadvantaged and historically underrepresented racial/ethnic backgrounds have poorer outcomes than their peers  Given the demographics of the state, it is essential to reduce these achievement gaps  Access to UC and CSU has not kept up with increases in college readiness 13 Most high school students graduate in California 2017 high school graduation rates (%) Asian American White Statewide total Latino Socioeconomically disadvantaged African American English Learner 0 93 87 83 80 79 73 67 20 40 60 80 100 14 The majority of students across income groups go to college College-going rates among recent HS graduates in California (%) 100 79 82 80 67 71 60 88 40 20 0 Less than $30,000 $30,000–$49,999 $50,000–$74,999 $75,000–$149,999 $150,000 and over 15 Higher education sectors vary greatly in their shares of underrepresented racial/ethnic groups… % of first-time student enrollment 100 80 49 60 6 40 22 20 10 12 0 CCC 45 4 21 15 14 CSU 27 23 2 5 Latino 21 African American 40 White Asian American 30 Other 14 20 18 UC Private nonprofit 16 …and other disadvantaged student groups % of first-time student enrollment 100 80 60 54 45 40 54 47 20 0 CCC CSU 40 35 First-generation Low-income 30 28 UC Private nonprofit 17 All types of four-year institutions see equity gaps across racial/ethnic groups… Six-year graduation rates (%) 100 80 67 63 60 53 44 40 85 87 75 77 20 0 CSU UC Four-year institutions 71 77 82 64 African American Latino White Asian American Private nonprofit 18 …and for low-income students Six-year graduation rates (%) 100 80 64 60 53 87 81 40 20 0 CSU UC Four-year institutions 80 71 Private nonprofit Low-income Not low-income 19 Outline  Value of a college degree  Falling short in college attainment  Progress and next steps 20 Bright spots of progress in critical areas  College preparation: More high school students are completing coursework to be UC- and CSU-eligible, with especially large improvements for Latinos  Access: At UC and CSU, the shares of first-time freshmen from low-income families are up substantially from a decade ago  Transfers: CCC’s Vision for Success sets ambitious goals; Associate Degrees for Transfer (ADT) link to CSU and UC, and now private nonprofit colleges as well  Student success: CSU’s graduation initiative has improved rates for all groups  Financial aid: CalGrants provide the largest aid packages to students from families with the lowest incomes 21 Further action is needed  College preparation: Middle and high school students need to know about college entrance requirements—including specific high school courses required  Access: Colleges should consider systematically including students’ economic background as one of the criteria used in determining admissions  Transfers: Continue expanding the ADT to include more colleges and majors  Student success: Provide supports and services that accompany students from beginning to end and that help them to stay on track and achieve their goals  Financial aid: Future proposals should link financial aid to the total cost of college and should reevaluate eligibility restrictions 22 California has a track record of success—and now is a critical time for renewal  California higher education institutions have a record of improving economic mobility for previous generations  The state and its public colleges and universities have invested heavily in a wide range of policies and programs  California must build upon its recent progress 23 Higher Education as a Driver of Economic Mobility December 12, 2018 Hans Johnson, Marisol Cuellar Mejia, Sarah Bohn Supported with funding from the College Futures Foundation and the Sutton Family Fund Notes on the use of these slides These slides were created to accompany a presentation. They do not include full documentation of sources, data samples, methods, and interpretations. To avoid misinterpretations, please contact: Hans Johnson (johnson@ppic.org; 415-291-4460) Marisol Cuellar Mejia (cuellar@ppic.org; 916-440-1135) Sarah Bohn (bohn@ppic.org; 415-291-4413) Thank you for your interest in this work. 25" } ["___content":protected]=> string(208) "

Event Briefing Slides - Higher Education as a Driver of Economic Mobility

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U.S. California 2 Economic success is tied to educational attainment Median annual salary and wage income ($) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1990 2000 2010 Bachelorʼs degree or higher Associate degree Some college HS graduate No HS diploma 2016 3 Higher education confers multiple benefits  A college degree helps people access a host of economic and social benefits—including upward mobility  But too few Californians are earning college degrees  California must build on recent progress and become a global leader, once again, in broad-based college graduation 4 Outline  Value of a college degree  Falling short in college attainment  Progress and next steps 5 Higher levels of educational attainment confer higher wage premiums Wage premium relative to HS graduates (%) 100 80 60 40 29 21 20 0 -20 -22 -40 No HS diploma Some college Associate degree 91 73 62 Bachelor's Bachelor's Advanced degree only degree or higher degree 6 College-educated Californians are much more likely to be employed… Labor force participation (%) 100 80 60 40 20 0 No HS HS Some Associate Bachelor's diploma graduate college degree degree or higher Unemployment rate (%) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 No HS HS Some Associate Bachelor's diploma graduate college degree degree or higher 7 …and are less likely to be in poverty or reliant on government safety net benefits Poverty rate (%) 40 35 30 25 20 15 10 5 0 No HS HS Some diploma graduate college Source: California Poverty Measure. Associate Bachelor's degree degree or higher Social safety net recipient (%) 50 40 30 20 10 0 No HS HS Some Associate Bachelor's diploma graduate college degree degree or higher 8 Outline  Value of a college degree  Falling short in college attainment  Progress and next steps 9 California ranks last in generational progress on college completion Difference in the share of college graduates among older and younger adults (% pts) 35 30 25 20 15 10 5 0 Source: Education at a Glance (OECD, 2015). 10 Generational progress in earnings has also declined Share of Californians earning more than their parents (%) 100 89 80 60 71 58 40 20 0 1940 1950 1960 Source: Chetty et al., The Fading American Dream (Opportunity Insights, 2016). 57 1970 49 1980 11 Only a third of young adults born in California have a college degree Share of California-born young adults with a bachelor’s degree (%) 70 60 50 40 30 20 10 0 All Asian American White African American Latino 12 Why are Californians falling behind in college attainment?  Equity gaps are a big challenge  At each step to a college degree, students from socioeconomically disadvantaged and historically underrepresented racial/ethnic backgrounds have poorer outcomes than their peers  Given the demographics of the state, it is essential to reduce these achievement gaps  Access to UC and CSU has not kept up with increases in college readiness 13 Most high school students graduate in California 2017 high school graduation rates (%) Asian American White Statewide total Latino Socioeconomically disadvantaged African American English Learner 0 93 87 83 80 79 73 67 20 40 60 80 100 14 The majority of students across income groups go to college College-going rates among recent HS graduates in California (%) 100 79 82 80 67 71 60 88 40 20 0 Less than $30,000 $30,000–$49,999 $50,000–$74,999 $75,000–$149,999 $150,000 and over 15 Higher education sectors vary greatly in their shares of underrepresented racial/ethnic groups… % of first-time student enrollment 100 80 49 60 6 40 22 20 10 12 0 CCC 45 4 21 15 14 CSU 27 23 2 5 Latino 21 African American 40 White Asian American 30 Other 14 20 18 UC Private nonprofit 16 …and other disadvantaged student groups % of first-time student enrollment 100 80 60 54 45 40 54 47 20 0 CCC CSU 40 35 First-generation Low-income 30 28 UC Private nonprofit 17 All types of four-year institutions see equity gaps across racial/ethnic groups… Six-year graduation rates (%) 100 80 67 63 60 53 44 40 85 87 75 77 20 0 CSU UC Four-year institutions 71 77 82 64 African American Latino White Asian American Private nonprofit 18 …and for low-income students Six-year graduation rates (%) 100 80 64 60 53 87 81 40 20 0 CSU UC Four-year institutions 80 71 Private nonprofit Low-income Not low-income 19 Outline  Value of a college degree  Falling short in college attainment  Progress and next steps 20 Bright spots of progress in critical areas  College preparation: More high school students are completing coursework to be UC- and CSU-eligible, with especially large improvements for Latinos  Access: At UC and CSU, the shares of first-time freshmen from low-income families are up substantially from a decade ago  Transfers: CCC’s Vision for Success sets ambitious goals; Associate Degrees for Transfer (ADT) link to CSU and UC, and now private nonprofit colleges as well  Student success: CSU’s graduation initiative has improved rates for all groups  Financial aid: CalGrants provide the largest aid packages to students from families with the lowest incomes 21 Further action is needed  College preparation: Middle and high school students need to know about college entrance requirements—including specific high school courses required  Access: Colleges should consider systematically including students’ economic background as one of the criteria used in determining admissions  Transfers: Continue expanding the ADT to include more colleges and majors  Student success: Provide supports and services that accompany students from beginning to end and that help them to stay on track and achieve their goals  Financial aid: Future proposals should link financial aid to the total cost of college and should reevaluate eligibility restrictions 22 California has a track record of success—and now is a critical time for renewal  California higher education institutions have a record of improving economic mobility for previous generations  The state and its public colleges and universities have invested heavily in a wide range of policies and programs  California must build upon its recent progress 23 Higher Education as a Driver of Economic Mobility December 12, 2018 Hans Johnson, Marisol Cuellar Mejia, Sarah Bohn Supported with funding from the College Futures Foundation and the Sutton Family Fund Notes on the use of these slides These slides were created to accompany a presentation. 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