Study: Charter high grads earn more as adults

Florida students who attended charter high schools earn significantly more as 23- to 25-year-olds than those who went to traditional public high schools, concludes a large-scale study by Vanderbilt and Georgia State researchers. Charter high school students are more likely to complete high school, go to college and stay in college, concluded the study, which was published in the Journal of Policy Analysis and Management.

Former charter students earned $2,300 more per year, on average, in their early to mid-20s, said Ron Zimmer, one of the researchers.

Test scores weren’t higher at the charters, but these schools may do better at “promoting life skills like grit, persistence, self-control and conscientiousness,” he said.

To create a control group of students from education-minded, school-choosing families, researchers compared charter eighth graders who went on to traditional public schools with charter eighth graders who enrolled in charter high schools. They crunched the numbers five different ways to show their results were “robust.”

It’s not news that charter schools boost “attainment” — years of schooling — for disadvantaged students, even when test scores are no higher. Going farther in school and college pays off.

Zeeconomics has more on the long-term effects of charter school attendance in Boston, Chicago and Florida.

Blacks graduate in lowest-paying majors

Black college graduates are likely to choose low-tech majors that lead to low-paying jobs, according to a report by Georgetown’s Center on Education and the Workforce. Twenty percent of black students major in human services and community organization (median earnings of $39,000). They’re also over-represented in social work ($42,000), early childhood education ($38,000) and psychology.

Few major in engineering, science or math. Those who do often choose the lowest-paying speciality, such as biology for black women and civil engineering for black men.

Early childhood education, one of the lowest-paying majors, is a popular choice for black students.

Blacks are more likely to major in the “caring” professions, such as early childhood education, which lead to low-paying jobs.

Two-thirds of black college graduates are female, which surely explains some of the lean toward the “caring” and underpaid professions.

In addition, most black graduates have attended an open-admissions college that may have limited majors and inadequate counseling, the report observed.

Many Americans — and especially those who are the first in their families to attend college — think any degree guarantees a decent job and a middle-class life. Someone should tell them they’ll have trouble repaying student loans for a non-technical degree from an unselective college.

Elite degree doesn’t matter for STEM grads

Graduating from an elite college doesn’t boost earnings for science, math and engineering graduates, conclude Eric R. Eide and Michael J. Hilmer in the Wall Street Journal. A prestige degree does help business and liberal-arts majors, according to the Journal‘s analysis of a survey of graduates.

STEM grads with a degree from a low-priced state university earn as much as those from elite private schools, they found.

The analysis controlled for “factors that might influence earnings, such as family income, race/ethnicity, gender, marital status, SAT score, postgraduate degree and age at graduation and more.”

In STEM fields, “curriculums are relatively standardized and there’s a commonly accepted body of knowledge students must absorb,” write Eide and Hilmer. Employers seem to be looking for skills rather than prestige.

Assessing a job applicant’s competence is harder if the degree is in what we used to call “fuzzy studies.”

College graduates’ “well-being” — financial security, health, sense of purpose and other factors — isn’t related to their alma mater’s selectivity, size or whether it was public or private, concluded the Gallup-Purdue Index in 2014.

Gallup will use its Well-Being Index  to certify universities that produce the happiest graduates. George Mason is the first university to seek  certification.

Study: Teachers bargain, students lose

Teachers’ collective bargaining rights correlate with lower employment and earnings for students later in adult life, concludes a study by Michael F. Lovenheim and Alexander Willén in Education Next.
They compared student outcomes in states that enacted a duty-to-bargain law to outcomes in states that did not change their collective-bargaining policies.

There was no effect on the amount of schooling students completed.

However, “students who spent all 12 years of grade school in a state with a duty-to-bargain law earned an average of $795 less per year and worked half an hour less per week as adults than students who were not exposed to collective-bargaining laws.” Those educated in duty-to-bargain states were less likely to be employed and those with jobs were more likely to work in low-skilled occupations.

Why? They’re not sure.

Perhaps collective bargaining has made it more difficult for school districts to dismiss ineffective teachers or to allocate teachers among schools. Or perhaps the political influence of teachers unions at the state level has interfered with efforts to improve school quality.

More than 60 percent of U.S. teachers work under a union contract, but some states, such as Wisconsin, Michigan,  Indiana and Tennessee, have moved to restrict teachers’ bargaining rights.

College pays — for some, not all

College pays — on average — but your results may vary, writes Megan McArdle on Bloomberg View. That last part is important: College doesn’t pay for the poorly prepared, who are unlikely to earn a degree.

The college wage premium has risen sharply in the last 30 years for U.S. males, concludes a working paper. However, there’s a much larger gap between high-earning and low-earning graduates.

“More people start college than did in 1985,” writes McArdle. “It’s just that they don’t finish.”

Dropping out may be a sensible decision for low-tier students who are likely to end up in low-paying jobs that don’t require a degree. Why borrow to be a barista?

While we’d like to think of enrolling in college as a guaranteed route to a stable, well-paying job, in reality it’s more like a lottery ticket. There are good jobs out there that are available only to folks with a college diploma. But not everyone with a college diploma gets one. You can also end up underemployed.

. . . Of course, it’s not exactly like a lottery ticket, because the distribution of the rewards isn’t random. Not every college graduate is entered in the “investment banker” or “Silicon Valley software engineer” draws.

According to this model, “the gains from pushing marginal students into college are likely to be small, for both the students and for society,” McArdle concludes.

People who’ve had trouble learning — and getting their work done — in high school occasionally bloom in college. But not very often.

Will college pay? Check the Scorecard

President Obama’s plan to rate colleges on affordability and success rates collapsed. But the Education Department’s new College Scorecard provides useful information for families wondering what a particular college costs by family income and what percentage of students earn a degree and begin paying off their student debts within three years.

Most intriguing, the Scorecard uses IRS data to show enrollees’ median annual earnings 10 years after enrollment and the percentage who earn more than the average high school graduate, about $25,000 a year, six years after entering college. The information includes dropouts and graduates.
PHOTO: In an undated photo, The College Board offers data and information about colleges to prospective students.

At a quarter of American colleges, the majority of students who got federal financial aid end up earning less than $25,000 per year a full decade after they first enrolled,” reports Libby Nelson on Vox.

The Scorecard can track only students who received federal aid, but that’s 70 percent of the total.

Earnings aren’t reported by program or major, masking the variations between different degrees at the same school.

The Scorecard makes it “easier to figure out which schools are a waste of money,”  writes Jordan Weissmann on Slate.

PayScale is using the federal data to calculate the 20-year return on investment at different colleges for students in various family income quintiles.

I’m sure students and parents will find the Scorecard useful. But it has its limits. The highly selective colleges have strong graduation rates and graduates who do well in the workplace, though earnings are lower at liberal arts colleges, higher at technical schools. The less selective schools have much lower graduation rates. Their former students and graduates earn less and have more trouble repaying their debts.

Does an A+ student become a high earner because he chose Georgia Tech over Duke? Does the B- student become a low-earning dropout because she chose the not-very-selective state university over the not-very-selective private college?

I’m not sure C- students will use the Scorecard. If they do, they’ll see that the sort of college they can get into has very low graduation rates and low earnings payoffs. They’ll see two-year vocational degrees, but won’t see vocational certificates.

College payoff is shrinking

What Is College Worth? asks John Cassidy in The New Yorker.  Despite increasing costs, the number of young people going to college keeps going up, he writes.

Some 70 percent of high school graduates enroll in college and half of Americans between 25 and 34 have a college degree.Product Details

“College has been life changing for most people and a tremendous financial investment for many of them,” writes Peter Cappelli, a professor of management at Wharton, in his new book, Will College Pay Off? Yet, for some, “it has been financially crippling.”

The “college wage premium” has stopped growing, writes Cassidy.

In 2001, according to theEconomic Policy Institute, a liberal think tank in Washington, workers with undergraduate degrees (but not graduate degrees) earned, on average, $30.05 an hour; last year, they earned $29.55 an hour.

Other sources show even more dramatic falls. “Between 2001 and 2013, the average wage of workers with a bachelor’s degree declined 10.3 percent, and the average wage of those with an associate’s degree declined 11.1 percent,” the New York Fed reported in its study.

New graduates with bachelor’s degrees have been hit hard by falling wages and rising unemployment. Non-graduates are doing even worse, but that’s little comfort.

“The big news about the payoff from college should be the incredible variation in it across colleges,” Cappelli writes. “The payoff from many college programs—as much as one in four—is actually negative. Incredibly, the schools seem to add nothing to the market value of the students.”

College payoff is less for blacks, Hispanics

College-educated blacks and Latinos fared significantly worse in the recession than less-educated minorities, concludes a Federal Reserve Bank of St. Louis report.

Earning a college degree raises earnings for blacks and Latinos, but it also may add to debts. “Higher education alone cannot level the playing field,” the report concluded. “College degrees alone do not provide short-term wealth protection, nor do they guarantee long-term wealth accumulation.”

race-wealth-income“Better-educated African American and Latinos were more likely to own homes, and those homes tended to be their primary source of wealth, so when the housing market collapsed, their residences transformed from piggy banks into anchors,” writes Joseph Williams on TakePart.

Minority and low-income students “don’t attend the best possible colleges they could (based on grades, etc.),” which lowers earnings, S. Michael Gaddis, a Penn State sociology professor, told TakePart.

Black and Latino graduates earn significantly less than whites and Asian-Americans.

In a study Gaddis conducted in March, job applications with “white” names resulted in more job offers for higher pay than those with “black” names. Fictional jobseekers who claimed to be graduates of elite colleges did better than those from less-elite colleges, but race mattered. “Education apparently has its limits because even a Harvard degree cannot make DaQuan as enticing as Charlie to employers,” Gaddis wrote.

Does money matter?

“Increased school spending is linked to improved outcomes for students, and for low-income students in particular, argue Kirabo Jackson, Rucker Johnson and Claudia Persico in Boosting Educational Attainment and Adult Earnings

Previous research has shown no link between school spending and learning.

This study correlated spending increases with “large improvements in educational attainment, wages, and family income, and reductions in the annual incidence of adult poverty for children from low-income families.”  However, “how the money is spent matters,” the authors write in Education Next.

Ric Hanushek questions the analysis. School spending has increased significantly, he writes.

If a ten percent increase yields the results calculated by Jackson, Johnson, and Persico, shouldn’t we have found all gaps gone (and even reversed) by now due to the actual funding increases?  And, even with small effects on the non-poor, shouldn’t we have seen fairly dramatic improvements in overall educational and labor market outcomes? In reality, in the face of dramatic past increases in school funding, the gaps in attainment, high school graduation, and family poverty have remained significant, largely resisting any major improvement.

How money is spent matters a great deal more than the number of dollars available, Hanushek concludes.

The authors responded to the critique and Hanushek responded to the response.

Sanders: “Free” and federalized higher ed


Vermont Sen. Bernie Sanders is seeking the Democratic presidential nomination.

State colleges and universities should be tuition free, says Bernie Sanders. “In exchange for billions of new taxpayer dollars, the federal government would enforce a specific vision of what a high-quality college education means,” writes Kevin Carey, education policy director at the New America Foundation. It’s “a terrible idea.”

States would have to promise that, within five years, “not less than 75 percent of instruction at public institutions of higher education in the State is provided by tenured or tenure-track faculty.” In addition, any funds left over after eliminating tuition could be used only for purposes such as “expanding academic course offerings to students,” “increasing the number and percentage of full-time instructional faculty,” providing faculty members with “supports” such as “professional development opportunities, office space, and shared governance in the institution.”

States would be prohibited from using the money for merit-based financial aid, “nonacademic facilities, such as student centers or stadiums,” or “the salaries or benefits of school administrators.”

This is a professor’s dream, writes Carey. There’s “tenure for everyone, nice offices all around, and the administrators and coaches can go pound sand.”

It will lead to “lengthy regulatory guidance” and lots of lawsuits, he predicts. Meanwhile, new models that might be more affordable, flexible and effective would be shut out.

Responding to middle-class anxiety, candidates are proposing “free college, debt-free college, or some combination of the two,” writes Carey. Federal money “will come with serious conditions based on some vision of what constitutes a high-quality college education.”

It’s time to break up the higher education “cartel,” said Republican candidate Marco Rubio, who borrowed heavily to earn his college degrees.

Rubio pledged to create a new accreditation process that would allow low-cost providers — perhaps largely online – to compete with established schools. He has called for colleges to tell potential students how much salary they can expect to earn for a given degree before they commit themselves to a major.

Loan repayments should be based on postgraduate incomes, said Rubio.