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blog post

Examining the Federal EITC’s Impact on Poverty

By Tess Thorman, Caroline Danielson, Sarah Bohn

The federal Earned Income Tax Credit (EITC) keeps hundreds of thousands of Californians out of poverty. But its role varies widely across regions.

blog post

California Politics and the Future

By David Lesher

A panel of experts this week focused on the challenges and opportunities ahead for the governor and legislature.

blog post

Testimony: Closing California’s Degree Gap

By Hans Johnson

The most promising approach to closing the workforce skills gap is to concentrate on improving the educational attainment of California residents.

Report

Will California Run Out of College Graduates?

By Hans Johnson, Sarah Bohn, Marisol Cuellar Mejia

California’s higher education system is a critical driver of the state’s economic progress. As the state’s economy continues to change, will its workforce be ready for the jobs of tomorrow?

This report updates and extends projections of California’s workforce skills through 2030, focusing on the supply and demand for workers with a bachelor’s degree. We find that the state will fall about 1.1 million college graduates short of economic demand if current trends persist—a problem we call the workforce skills gap. Even the arrival of highly educated workers from elsewhere is unlikely to be large enough to fill this gap.

Today’s college graduates have better economic outcomes than those who do not hold a bachelor’s degree. Over time, college graduates have seen lower rates of unemployment and higher wages than other workers—even through the Great Recession—suggesting that college degrees have become increasingly valuable in California’s labor market.

The future workforce skills gap looms large. But California and its higher education institutions can take several practical steps to close it. The core of a new plan for higher education should include increasing access to the state’s four-year institutions, improving college completion rates, expanding transfer pathways from community colleges, and being smart about aid programs.

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Economic Trends

Analyzing the major economic and labor market trends that are affecting California today and shaping its future.

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