Posts Tagged "business"
March 15, 2022
High School Career Courses Keep on Giving
For young adults who don’t have a college degree, the career-oriented courses they took in high school give them a leg up in the job market. But do the benefits of higher-quality employment after high school continue into middle age?
The first known U.S. study to examine the long-term impact of high school curricula finds that career and technical classes produce workers who, even though they didn’t attend college, are employed at age 50 – even better if they also took Algebra 2 and other college-prep math courses.
To target the students who prepared themselves for better-paying jobs, the courses the researcher counted as career-oriented were business and marketing, health care, agriculture, and computer programming. Amanda Bosky at the University of Wisconsin excluded courses that tracked students into low-wage work like food service and childcare.
Career and technical courses improved the labor market standing of men and women, with subtle differences. For the women, the more career courses they took in high school, the more likely they were to be employed at age 50. The benefits held true regardless of the individual’s innate characteristics, which usually play a role in career success – from scores on standardized math tests to parents’ income.
For 50-year-old men, any amount of career and technical training improved their odds of continued work, according to the analysis, which used a survey of 1982 high school graduates that checked in on them again decades later. The students’ transcripts, detailing their coursework, supplemented the survey.
Although Bosky didn’t examine the types of jobs the older workers were doing, her premise is that it’s better to be employed than not in the years before retiring.
The findings have another important implication. Understanding what it takes for high school graduates to be engaged in the labor force at 50 is crucial at a time secure union jobs are being eliminated and the demands of a technology-based economy have increased. …Learn More
July 16, 2020
Examining the Black-White Wealth Gap
The Black Lives Matter protesters have brought renewed attention to the enduring economic inequality that separates Black and white America.
Homeownership is at the heart of this disparity.
For many Americans, their largest source of wealth is the value they have built up in their homes over time. The house is also traditionally the primary way for moderate- and middle-income parents to pass wealth on to their children.
But less than half of African-Americans own homes, and the ones who do have a fraction of the equity whites have due in large part to the nation’s long history of segregated housing, economists say.
Further, the tidal wave of foreclosures a decade ago reduced the already low homeownership in minority communities, which felt the brunt of the housing market collapse. The Black homeownership rate is just 42 percent – 5 percentage points lower than it was in 2000. White homeownership remained stable throughout the crisis and is now around 72 percent, the Urban Institute said.
The upshot of this combination of fewer Black owners and less equity for those who own a house is that the typical African-American worker has $4,400 in home equity, compared with $67,800 for whites. The home equity gap accounts for about half of the Black-white disparity in total wealth.
A web of systemic reasons explain the home equity gap. Black homebuyers have more debt, in part because they are twice as likely to receive a mortgage with a high interest rate as white buyers with comparable incomes. …Learn More