July 2010 newsletter
share this pageThe link between higher education and higher incomes in Minnesota is reconfirmed in the most recent data, according to a research brief released this week. Analyzed by the Minnesota Private College Research Foundation, the data also capture how dramatically the wage benefit varies depending on race, with average wages considerably lower for black, American Indian, Hispanic and Asian Minnesotans.
The brief, Change in Income by Education Level, by Race in Minnesota (PDF), confirms that these two longstanding national trends — the link between education and income as well as discrepancies tied to race — remain in place in Minnesota and neighboring states. The analysis uses the U.S Census Bureau’s most recent American Community Survey data, from 2006 to 2008. Finding examples include:
- Minnesotans with a high school credential earn 43% more than those who do not finish high school. Earnings for Minnesotans with bachelor’s degrees average 149% higher than for those who do not finish high school.
- College degree holders see their wages grow faster and plateau at a higher level than Minnesotans with less education.
- For Minnesotans earning a bachelor’s degree, whites earn an average of $52,808 while earnings for blacks, American Indians, Asians and Hispanics average around $40,000.
We asked three local experts who follow such trends to weigh in on the findings. What do they mean for Minnesota and what responses should our state consider, in terms of both the economic benefits of education and how those benefits are distributed among different racial groups? Here are their responses.
Paul W. Mattessich, executive director of Wilder Research and director of the Minnesota Compass project
For
the five-state region, a college degree clearly adds an average of
$15,000 to $20,000 to a person’s annual income; it adds $24,000 for
blacks. This suggests that the quality of life for everyone in our state
will increase if we can sustain industries here that require and pay
for higher skills, and if we can promote the attainment of college
degrees. Persons of color currently contribute the largest growth to our
population. To remain competitive, we must increase their rates of
post-secondary degree attainment. Our communities and our institutions
must nurture the aspirations of all young people to pursue higher
education; they must promote the early development of academic skills.
They need as well to address any barriers to access which inhibit
qualified individuals from entering or completing higher education.
Carlos Mariani Rosa, executive director, Minnesota Minority Education Partnership
Increased
educational attainment produces benefits for all racial groups. But in
Minnesota, systemic racial dynamics produce unequal education outcomes
resulting in different levels of prosperity for different racial
communities.
Minnesota must focus on both education quality and equality. For example, while white students have been better set up than students of color to be successful, all students share a strong need to be better college equipped by their K-12 schools.
We can target strategies tailored for specific groups while expecting all students to meet the same high quality expectations. Given unequal economic resources, we could create additional means for different students to afford college, e.g. targeted scholarships, financial aid specifically for older adults. We can also make K-12 more powerfully connected to post-secondary, e.g. by expanding PSEO and other college course-conferring programs and by extending K-12 to grade 14.
Minnesota should engage this data as an essential step to economic and education reform.
Steve Hine, research director, Minnesota Department of Employment and Economic Development
As
Minnesota and the nation recover from the “Great Recession,” our state
has once again become a national leader by many measures of economic
performance. For example, the state’s unemployment rate has fallen from
8.4% a year ago to 6.8% as of June 2010. This decline is the largest
across the states and puts us in a tie for eighth-lowest. However, not
all indicators give us such bragging rights. Not only is there a
disparity among races in income, but there is a glaring gap between the
unemployment rates for whites versus blacks. Based on the most recent
12-month average from the Current Population Survey, the unemployment
rate for whites in Minnesota was 6.7% while the corresponding rate for
blacks stood at 22.6%. The corresponding rates for the nation as a whole
were 8.9% and 15.8% respectively. So while blacks nationally are 77.5%
more likely to be unemployed, that increases to a whopping 237% here in
Minnesota.
A strong influence on a person’s employment situation is their educational attainment — for example, the unemployment rate nationally for those with less than a high school degree stands at 14.1% while the rate for those with a four-year college degree or higher is 4.4%. One can speculate that this underlies the 237% unemployment rate gap, but this appears to be an incomplete explanation. Based on 2008 American Community Survey estimates, 27.9% of white Minnesotans have a high school diploma or equivalent only, while the rate for blacks is slightly lower at 26.1%. The attainment gap widens when we look at the share of these populations with an associate, bachelor’s or graduate degree — 42.0% of white Minnesotans have such a degree compared to only 28.8% of black Minnesotans. While this difference in educational attainment certainly contributes to the unemployment gap, it is hardly large enough to explain the huge gap in unemployment. Identifying and understanding the additional forces that are impeding black success in our state’s labor markets is crucial to our continued standing as a national leader in economic opportunity.
Real-world learning as a Mayo Innovation Scholar
This past year, I participated in the Mayo Innovation Scholars Program, a uniquely designed program that provides an opportunity for undergraduate science and economics students to research and analyze Mayo Clinic invention ideas. The experience was enriching in that it enabled me to critically assess a variety of issues from both a scientific and logistical perspective.
The program was a focal point of numerous internship interviews and helped me get an internship with the Healthcare Group at an investment bank in New York this summer. More importantly however, I have wonderful memories of working with a team of driven, smart, funny and talented peers.
Macalester College's team consisted of four students that included Philip Titcombe and Chen Gu (science focus) and David Lopez and me (economics focus). We assisted the Mayo patent and licensing experts by presenting a feasibility study on a new technology that delivers drugs across the blood-brain barrier and is under development by Mayo scientists.
Under the guidance of an MBA student from Augsburg College (Chad Leonard) and our faculty mentors at Macalester, our team systematically assessed the strengths, weaknesses, opportunities and threats of the technology in the medical field and in terms of its economic value. The value of the project lay in the inter-meshing of knowledge between the science and economics students. Although Philip and Chen were primarily responsible for understanding the scientific technicalities behind the product, David and I worked alongside them, conducting patent searches and pausing for a "teach-back" lesson where Philip and Chen would simplify the intricacies of the science behind the invention.
Besides an intricate description of the technology and the patents associated with it, the final report included a market analysis of buyer and supplier power, the threat of substitutes, competition and the barriers to entry in order to ascertain the profitability of the product. Ultimately our report recommended that both the therapeutic and diagnostic applications of the new technology be licensed out to two specifically identified pharmaceutical companies that are specialists in the field of drug delivery.
The project made me realize that while necessity is truly the mother of invention, the real world demands the analysis of numerous factors such as pricing, affordability, future demand projections, unemployment, inflation, demographic changes and even cross-border migration. By bringing together an Indian, a Malaysian, a Chinese and an American, the project inspired many a discussion on the diseases to which medical research money should be distributed, the social value of patenting - as well as the usual digressions on soccer team rivalry!
Having to juggle four classes, extracurricular activities, sports and getting some necessary sleep in the middle of a Minnesota winter brought the team together in every way. Besides the academic knowledge and the real world experience, it was the exchange of ideas, the shared labor of a stellar product, the intellectual curiosity, late nights in the library over endless cups of coffee, and the team camaraderie that allowed us to embrace real-world unknown elements with confidence. The experience afforded us the chance to work across multiple disciplines, including biomedical sciences, supply-demand economics and biomedical ethics. By honing our critical thinking, effective written and oral communication skills, it proved to be the perfect application of a liberal arts education.
Designed by retired Medtronic executive John Meslow in 2006, the Mayo Innovation Scholars Program (MISP) is a unique synthesis of cutting edge scientific research and economic feasibility studies. The program offers an opportunity for undergraduate science and economics students to research and analyze projects submitted by Mayo Clinic scientists and physicians to Mayo's Office of Intellectual Property, thus extending academic learning beyond the confines of the classroom and laboratory.
Funding for MISP is provided by the Medtronic Foundation. Additional funding and support comes from the Mayo Clinic Office of Intellectual Property and the Minnesota Private College Council.
For recent college graduates, the question of what to do after graduation can loom overhead like an ominous rain cloud. Try to get an entry-level job in a faltering economy? Apply to graduate programs and go right back to school? For many recent graduates of Minnesota's private colleges, neither choice makes as much sense as finding a way to serve others. And, as more students aim to do good, they're finding the experience they are gaining is good for their careers, too.
"I feel like people who are graduating now have a real interest in service because they want to be part of the change, to be on the ground, rather than just giving financially," said Marie Zimmerman, a 2009 College of Saint Benedict graduate.
Zimmerman chose to spend 2009-10 volunteering with Admission
Possible, a nonprofit organization started in Minnesota by Carleton
College alumnus Jim McCorkell, as an AmeriCorps VISTA (Volunteers in
Service to America). The program coaches low-income high school students
through the process of preparing for, applying to and getting into
college.
Zimmerman's decision is part of a trend that is bringing increased numbers of applicants to Admission Possible (and programs like it), providing communities with the energy and expertise of recent graduates, and changing young people's career paths.
More students looking to serve
Throughout the
last decade, the trend toward college graduates spending time after
graduation serving their communities or countries has taken off. As it
has, existing programs have expanded, and new programs have been
founded.
U.S. government-funded AmeriCorps began in 1993 and now provides volunteers to hundreds of national and local nonprofits; Admission Possible is one of many AmeriCorps-affiliated organizations.
As part of their one-year AmeriCorps commitment, Admission Possible members work more than 1,700 hours each; they are compensated with about $800 monthly to cover living expenses and provided a modest health benefit. When they complete their term, they are eligible to receive an education award of up to $5,325 to put toward student loans or additional schooling.
Increased interest for many reasons
Admission
Possible has received increased interest and numbers of applications in
the last several years, including interest from students from private
colleges in Minnesota, Communications Coordinator Emily Jacobs said.
Two hundred candidates applied for the 2007-08 school year; that number nearly doubled to 374 by 2009-10. Of those applicants, 70 were chosen last year to be a part of Admission Possible, and about half of those members attended Minnesota's private colleges.
The reasons for the added interest in service-oriented programs are varied, Jacobs said. "We feel this increase represents a growing interest in service, as well as the growing competitiveness in the job market."
Myles Radtke, a 2009 Carleton College graduate, applied and was hired as an AmeriCorps VISTA by Admission Possible this year, but said the hiring process was actually "very competitive," which took him by surprise.
Jacobs sees the increase in interest as a good thing, noting that it creates a more qualified pool of candidates, allowing Admission Possible to "find the best fit for the position."
Catalysts for a career
As an increase in interest
in Admission Possible and similar programs has occurred in the last few
years, something unique has happened; in addition to being a way to
"give back," contributing a year (or two) of service has been recognized
as one of the best ways for young people to begin their careers. In
fact, in 2008, Admission Possible ranked as one of the Princeton
Review's Best Entry Level Jobs.
To Zimmerman, Admission Possible provided a way to explore several fields she thought she might want to pursue and gain work experience. She applied to several AmeriCorps programs shortly before graduating and was then hired by Admission Possible for a communications position.
Communications was not only her major, but an area she had her eye on, she said. In addition, the program's organizational culture and nonprofit status appealed to her. "I wanted to try working in nonprofits to see if it fit."
Working with the organization this year has "absolutely" helped Zimmerman move forward in her career, as she now knows she wants to work in communications and in the nonprofit world, she said. Her dual focus on making a good career decision while also helping others echoes what seems to be students' mixed motivations for pursuing service programs.
According to Denise Ward, associate dean for student services at Macalester College, wanting to do something positive after graduation might have as much to do with the school the student is attending as it does to factors like the economy. Macalester, like many private colleges in Minnesota, has a "strong tradition of service orientation," she said.
A culture of service
Students pursuing service
opportunities might have varied motivations for doing so, but the
encouragement they receive from their respective institutions proves an
important part of their decision.
According to Radtke, the message to serve after graduation didn't necessarily come from administration - it came from the students themselves. Several people within his group of friends also chose service opportunities, from the Peace Corps to other AmeriCorps programs, he said. He specifically chose to pursue Admission Possible because he was once a low-income high-schooler himself, he said, and was drawn to the program's mission of navigating the path to college for first-generation students.
Bethel University alum Christian Ann Drummond, who graduated in 2009 and is an Admission Possible college coach, echoed Radtke's belief that her university's climate and mission inspired her to serve her community after graduation. "In general, college students believe they can change the world, but I think people at Bethel really believe that," she said.
Drummond also credited her adviser as helping her to see that Admission Possible was an opportunity and a privilege. In turn, she has persuaded several of her friends still at Bethel to apply, and two of them will be Admission Possible AmeriCorps members this coming year, she said.
Overall, Jacobs says that Admission Possible's AmeriCorps program gives recent graduates "a lot of responsibility and opportunities to develop their career skills."
Zimmerman said her year-long experience has been very positive. "I have loved working at Admission Possible. It gave me a chance to take on some career responsibility while also making a difference," she said. "It's fun to come to work and know that you could change someone's future."
