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Part 2: WHAT ARE THE REAL RETURNS FROM POST-SECONDARY CREDENTIALS?

May 11, 2012

Filed under: Education,Income & Working Families,Workforce — Tags: Mississippi, The Center on Law and Social Policy — admin @ 9:12 AM

Yesterday, the MEPC blog looked at earnings gains that Mississippians experience from receiving a post-secondary degree. The post determined that persisting to a college degree can have real effects on wages for individuals and families.

In fact, the returns Mississippians experience from pursuing a community college certificate, 2-year degree or 4-year degree are above 23 other states. The Center on Law and Social Policy (CLASP) looked at the personal income gains in each state from students attaining an additional 100 certificates, 100 associate’s degrees and 100 bachelor’s degrees. Mississippi ranked 27^thin personal income growth associated with these credential additions (see chart).

Gains from increasing credential attainment don’t just affect the individual. Increasing credential attainment also benefits families, employers and the state’s revenue generation. Mississippi also ranks even higher (19^th) for state revenue increases from adding 100 certificates, associate’s degrees and bachelor’s degrees (see chart).

As a state, Mississippi stands to experience above average returns to contributions that increase post-secondary credential attainment among its citizens. The findings emphasize the need for steps that increase state revenue, so funding to higher education isn’t limited, tuitions don’t rise as rapidly as in recent years, and students aren’t faced with additional barriers in their desire for higher education. Unfortunately, Mississippi currently faces the opposite scenario.

Without a balanced approach that considers pathways to raising additional public revenue, the state is at risk of not reaping the full returns available to its residents and state resources from increasing post-secondary credential attainment.

Author: Sarah Welker, Policy Analyst
Source: Center on Law and Social Policy. The Credential Differential: The Public Return to Increasing Postsecondary Credential Attainment. Webinar on April 26, 2012.

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WHAT ARE THE REAL RETURNS FROM POST-SECONDARY CREDENTIALS?

May 10, 2012

Filed under: Education,Income & Working Families,Workforce — Tags: Center on Law and Social Policy (CLASP), Economic Security, higher education, Mississippi, post-secondary degree, workers — admin @ 2:05 PM

Last week MEPC’s blog introduced a new tool that looks at the returns on investment adults and the state receive from increasing post-secondary degree and credential attainment among residents.

MEPC regularly recommends increasing resources for higher education, so adults have smoother, better supported pathways to success in higher education and the workforce. An analysis by the Center on Law and Social Policy (CLASP) affirms the importance of bolstering these investments and shows the value to Mississippians receiving the credentials and the state overall.

Let’s start on the individual level. The chart below compares the difference in earnings between adults with a high school degree, associate’s degree and bachelor’s degree. It is not surprising that Mississippi falls below average for earnings for adults with a bachelor’s degree. However, what the chart also shows is substantial space between Mississippi’s adults with a high school degree, associate’s degree and bachelor’s degree. The space between the earnings by educational attainment reveals that Mississippi workers experience notable wage increases through pursuing education.

Higher education continues to be a pathway for increasing economic security of individuals. However, gains from increasing credential attainment don’t just affect the individual. Increasing credential attainment also benefits families, employers and the state’s revenue generation.

Tomorrow’s post will compare the returns in personal and state income Mississippi experiences from increasing college credential attainment to the returns in other states across the U.S.

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JOB WATCH: Employment Since the End of the Recession

May 8, 2012

Filed under: Income & Working Families,Jobs,Unemployment,Workforce — Tags: employment, job market, Jobs, SNAP — admin @ 8:02 AM

Last week the jobs report revealed that the U.S. added a modest 115,000 in April 2012. The nation’s unemployment rate ticked down slightly to 8.1%. While Mississippi’s employment numbers have not been released yet for April, this post reviews longer-term trends in jobs across the state.

From the beginning to the end of the recession, Mississippi lost 5.5% of all its jobs, equal to approximately 64,000 jobs. Since the recession ended in June 2009, job loss has tempered, but Mississippi has still seen overall employment fall by 0.5% (see chart).

In comparison, the United States saw overall employment decline by 5.4% during the recession, and total employment has risen by 1.8% since June 2009. The disparities in job growth since the end of the recession signal that Mississippi’s recovery is progressing slower than the nation. Mississippi also trails the South overall where employment has expanded by 2.4% since the summer of 2009.

Additionally, the state’s job market in 2011 now appears to be weaker than originally projected. Data on Mississippi’s overall employment shows Mississippi’s employment down slightly from a year ago.

A more extended look at Mississippi’s employment history underscores that substantial job additions have not occurred since the recession ended, and Mississippi falls behind the region and nation which are experiencing weak growth. The findings also illustrate that thousands of Mississippi families continue to seek resources in the wake of job loss and financial hardship. Calls to cut critical programs like SNAP, as highlighted in last week’s post, risk further harming workers and families who have lost jobs and are struggling to find employment in communities across the state.

Author: Sarah Welker, Policy Analyst
Source: Bureau of Labor Statistics. Current Establishment Survey. Jobs in thousands.

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Mississippi’s Graduation Rate Task Force Goals for Increasing Degree Attainment

May 2, 2012

Filed under: College,Education,Income & Working Families,Workforce — Tags: degree attainment, graduation rate, Graduation Rate Task Force, Mississippi, post-secondary, Workforce — admin @ 9:55 AM

In 2009 Mississippi’s Graduation Rate Task Force developed long-term goals for increasing the number of Mississippi adults with a postsecondary degree. The Task Force outlined that they wanted to reach the national rate for degree attainment by 2025 which means raising the portion of Mississippi’s residents with a post-secondary degree to 46.5%. Currently, 29.9% of working-age adults hold a post-secondary degree.

To reach the Task Force goal, Mississippi needs to connect close to 150,000 additional residents with a 2 or 4 –year degree beyond the current rate of degree attainment, equal to an additional 950 and 1,000 graduates each year.

What different levers can contribute to increasing the rate at which Mississippi’s students attain degrees?

A new tool from the Center on Law and Social Policy (CLASP) explores what factors can raise the portion of residents earning a credential. By setting a “2025 College Attainment Goal” at 46.5%, individuals can move “bars” for Mississippi’s high school graduation rate, the college-going rate and portion of adults enrolling in college to see how increasing each one contributes to more degrees earned.

Meeting the Graduation Task Force goal will also mean increasing the number of students that persist to graduation. Individuals can also explore how increasing the rate at which students earn credentials at two and four-year colleges will also be necessary to advance the state to its goal.

The tool also demonstrates the return on investment that comes from increasing college graduates including: increased per capita earnings, increased state revenue and decreased state spending.

While the data are estimates, CLASP’s tool provides a starting point for conversation about advancements still needed in Mississippi’s post-secondary education system. Ensuring the success of adult students will be a critical part of attaining the 2025 goal. Considering non-traditional student needs in program design, support services and curriculum development is critical for raising the number of prepared adults in Mississippi’s workforce and raising the state’s competitiveness and prosperity in the years ahead.

Read more on the returns of increasing credential attainment in Mississippi.
Author: Sarah Welker, Policy Analyst

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EQUAL PAY DAY 2012: A Closer Look at the Wage Gap Between Men and Women

April 24, 2012

Filed under: Taxes,Workforce — Tags: gender gap, Mississippi, Wages — admin @ 10:50 AM

Last week MEPC’s blog focused on Tax Day(April 17th). Equal Pay Day was also April 17th and this week we are focusing on the differences in wages between men and women across the country.

Earlier this year, MEPC release its State of Working report and looked at hourly wages for all workers. However, more recent data from the Census Bureau allows a comparison of annual earnings for a more limited sample of full-time workers.

The chart below details the gap in wages between men and women that persists in many Southern states. Across all industries women working full-time in Mississippi earned 75% of men working full-time in 2010. The gap is same in Alabama and Arkansas while North Carolina, Florida and Georgia all registered smaller wage gaps that the national norm.

While disparities between full-time earnings for men and women continue, women continue to make advances in educational attainment. Women over 25 years old in Mississippi are more likely than their male counterparts to have attained an associate’s degree, bachelor’s degree or more.

This trend mirrors the nation where women are attaining post-secondary credentials at higher rates than men. Among Mississippi’s younger working-age population, the differences in educational attainment broaden. Thirty-seven percent of women between 25 and 34 years old have an associate’s degree or beyond compared to 26% of men in the same age range.

What about factors beyond educational attainment?

To continue Equal Pay Day coverage, an upcoming blog will look at wages and Mississippi industries and share national findings on women and wages.

Sources: U.S. Census Bureau. American Community Survey 2008-2010 Averages.
Author: Sarah Welker, Policy Analyst

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State of Working Mississippi 2012 Chapter 1: JOBS

January 26, 2012

The release of MEPC’s State of Working Mississippi 2012 reveals that the 2000s challenged many Mississippi businesses, as well as working adults and their families. Chapter 1 of the report details trends in the state’s workforce, jobs and unemployment.

CHANGE IN EMPLOYMENT BY DECADE

Mississippi’s job losses in the 2000s appear particularly harsh when compared to the growth of the 1990s (see chart). Mississippi’s employment grew by 23.2% during the 1990s, in contrast to a 5.5% decline in the 2000s. The South experienced similar trends of strong job growth during the 1990s; however, the region did not experience the same level of overall decline in the last decade.

The latest data reveals that Mississippi was one of four states with an unemployment rate still above 10% in December 2011.

SHIFTS IN EDUCATIONAL ATTAINMENT AND AGE OF WORKFORCE

The percentage of workers with at least a bachelor’s degree rose to 22.8% during the decade, and 57.1% of the workforce has taken at least some college coursework. Even with gains, the state’s portion of adults with college experience registers below national norms (60.5%). Overall, more than 350,000 working-age adults still lack a high school diploma and college experience.

Older adults now represent a larger share of Mississippi’s workforce. Throughout the economic downturn in the late 2000s, many Americans delayed retirement to build economic security after suffering financial losses. In 2000, 13.3% of Mississippi workers were age 55 or over. By 2010, 18.7% of Mississippi’s labor force was at least 55 years old. In contrast, younger Mississippians now represent a smaller share of the state’s workforce.

RECOMMENDATION: (For full recommendations see complete State of Working 2012).

Increase wrap around supports for adults in adult basic education, job training and post-secondary courses. Strong wrap-around support services are critical for adults returning to school with the hope of gaining skills and moving into higher wage employment. Without these resources, even the strongest students will struggle to meet both the needs of their families and the demands of training. Examples of supports include: transportation vouchers, child care and staff dedicated to helping adults in adults basic education and GED programs transition to college-level classes.

Tomorrow: The SOW 2012 series continues with a closer look at wages by race, gender and educational attainment.

Author: Sarah Welker, Policy Analyst

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INTRODUCING THE STATE OF WORKING MISSISSIPPI 2012

January 25, 2012

Many communities across Mississippi continued to experience persistently high unemployment and underemployment, stagnant wages and economic insecurity. However, the state’s workforce remains resilient and continues to be one of the state’s greatest assets. Understanding how workers, industries and families have been affected over the last decade can lay a foundation for building up the workforce in the years ahead.

MEPC’s latest report, State of Working Mississippi 2012 is a comprehensive piece that looks at key aspects of the economy affecting Mississippi’s workforce from 2000 to the present. Specifically the report:

Inspects changes in critical areas of Mississippi’s economy since 2000 including: jobs, the workforce, wages, income, and state revenue.
Compares information in these areas with trends nationally and among Mid South states.
Examines each of these areas through the lens of race, gender and educational attainment.
Summarizes key takeaways and makes recommendations in each chapter for advancing working Mississippians and their families.

SELECT FINDINGS FROM STATE OF WORKING MISSISSIPPI 2012

TWO RECESSIONS RESULT IN JOB LOSS OVER THE DECADE

In Mississippi, employment peaked in February 2008 and then steeply declined until February 2010. In total, Mississippi lost 76,800 jobs over the two-year period. Mississippi’s job losses in the 2000s appear particularly harsh when compared to the prosperity of the 1990s. Mississippi’s employment grew by almost 25% during the 1990s, in contrast to a 5.5% decline in the 2000s. The Southern region and the United States experienced similar job growth during the 1990s; however, neither the South nor the nation experienced the same level of overall decline in employment in the 2000s.

MISSISSIPPI WORKERS EXPERIENCE LITTLE CHANGE IN WAGES

Many members of the state’s workforce have not seen an improvement in their wages since 2000, as companies were hit hard by two economic downturns, and state and local budgets tightened. The inflation-adjusted median wage in Mississippi grew marginally from 2000 to 2010, from $13.13 to $13.45. The gap between men’s and women’s wages narrowed over the decade, while the wage gap between white and African American workers persisted from 2000 to 2010.

WORKFORCE ADVANCES IN EDUCATIONAL ATTAINMENT

Mississippi’s workforce advanced in educational attainment over the decade, but needs to raise skill levels further to reach national norms. In 2000, 20.8% of the workforce received a bachelor’s degree or higher compared to 22.8% in 2010. Overall 57.1% of the state’s workforce has taken at least some college classes. However, over 350,000 working-age adults still lack a high school degree, and the share of workers without high school equivalency is larger in Mississippi than in the U.S.

Over the next several days we will take a closer look at the key findings and recommendations from each chapter of the report.

Author: Sarah Welker, Policy Analyst

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What Can Data Do?

November 1, 2011

Filed under: Childhood Advisory Council,College,Data System,Department of Education,Department of Human Services,Education,Income & Working Families,Institutions of Higher Learning,Longitudinal Data System,State Board for Community and Junior Colleges,Training,Workforce — admin @ 8:56 AM

A recent MEPC post raises concerns that the state’s future economic prosperity may be limited by persistently disparate outcomes between residents by poverty status and race. Moving towards many of the goals outlined in the post –job creation, quality schools and strong post-secondary and workforce training- will require more in-depth knowledge of how our education systems connect and support students of all ages.

In an effort to build that knowledge, the state recently passed legislation that will eventually provide the state’s leaders and policymakers with data on student and workforce outcomes across all education systems- elementary school to employment. Through the recently passed Mississippi State Longitudinal Data System, Mississippi will now begin to build the capacity to link information together from key state entities and eventually make data driven decisions for investment in policies and programs that move the state forward.

The figure below shows the agencies that will potentially be included in the new state system:

In particular, the recent authorization could develop a system that provides a resource for looking at the wage and employment outcomes of adults that exit training programs across the state. The system can also help determine which programs are successfully preparing low-income, low-skill adults to move into jobs with advancement opportunities and higher wages.

Using the SLDS gives leaders a resource for strengthening the state’s education and training, so more adults are equipped with the skills they need to open the doors to higher wage employment. Opening these doors remains a key avenue for increasing the economic security of families and one solution for closing income and educational disparities across the state.

Want to learn more?

Read more on the State Workforce Investment Board’s goals for the State Longitudinal Data System.
Read more on how data systems can be used to strengthen Mississippi’s education and training systems.
Read the SLDS legislation passed by Mississippi during the last legislative session.

Author: Sarah Welker, Policy Analyst

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2011 Annual Policy Conference Recap

October 26, 2011

Filed under: 2011 Annual Policy Conference,Basic Economic Security,Budget & Tax,Education,Events,Healthcare,Income & Working Families,Jobs,Making Mississippi Competitive: Solutions For Building Assets In Low-Wealth Communities,Poverty,Predatory Lending,Revenue,Self-Sufficiency,Taxes,Workforce — admin @ 10:23 AM

The 2011 Annual Policy Conference was a great success. Thank you to everyone who attended and the presenters who shared their knowledge and expertise. This year, MEPC expanded our break out session format to allow participants to attend two sessions.

Darrin Webb, opened the conference with an overview of Mississippi’s economy and Bobby Harrison, Capitol Correspondent for the North East Mississippi Daily Journal and Emily Wagster-Pettus, Associated Press political reporter served as respondents to the presentation, offer insight on how the changing political landscape will affect efforts to engage policy makers on issues affecting working families.

Our keynote luncheon address focused on the importance of the role of government in the lives of all Americans and the need for various constituencies to work together for a more prosperous Mississippi. Video of our Keynote Speaker, Hodding Carter III, Professor of Leadership and Public Policy University of North Carolina at Chapel Hill will also be available soon on our website so check back!

Below are brief descriptions of our 2011 Breakout Sessions:

Taxes fund the public structures that make up the foundation of our economy and make job creation possible.

MEPC Senior Policy Analyst Sara Miller and Elaine Mejia Senior Program Associate with Public Works at Demos present tax reform options and how to talk about taxes effectively in the current political landscape.

Understanding the challenges and opportunities of health care reform implementation

Corey Wiggins with i-Think Group examine the ongoing efforts of health reform implementation in Mississippi and how those opportunities and challenges affect the lives of working Mississippians.

Measuring basic economic security in Mississippi and building pathways for working families to achieve it

Wider Opportunity for Women’s Delese Harvey explores the new benchmark for basic economic security and gives hands on guidance on how organizations can use the Basic Economic Security Tables to advocate for programs that support families in their community or to help adults budget and set goals as they re-enter the workforce.

Steps to help Mississippi’s working families protect and build assets

Mississippi Center for Justice Community Organizer, Alicia Netterville and Felicia Lyles, VP Regional Branch Administrator for Hope Credit Union explain the effects of payday lending and how working families can make responsible financial decisions and move toward economic security.

PDF versions of all the PowerPoint presentations given in each break out session at the conference.

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Moving More Mississippi Families Toward Greater Economic Security

October 24, 2011

Filed under: Basic Economic Security,Income & Working Families,Jobs,Workforce — admin @ 10:14 AM

Last week MEPC’s posts focused on the release of a new report, The Basic Economic Security Tables for Mississippi. In the post below we provide more background on the measure and recommendations for moving more families to greater economic security.

Poverty data from 2010 revealed that 22.4% of Mississippians lived in households facing extreme economic vulnerability. However, the Basic Economic Security Tables underscore that many families across our state are earning wages below what they need to provide basic needs for their families and save for retirement and emergencies such as a job loss or large health care bill.

The graphic above compares the Federal Poverty Threshold for a family of four to basic economic security levels for 1 worker, 1 worker and a school child, and 2 workers with 2 children. Families with 2 workers and 2 school children need $53,808 to provide basic needs for their families and save for their retirement and emergencies, more than double the Federal Poverty Level for a family of 4- $22,314.

Mississippi faces the challenge of enhancing opportunities for working adults to advance towards the income levels set by the Basic Economic Security Tables. Now knowing what families need to reach economic security, MEPC makes the following recommendations for lifting up more pathways to true economic security:

Support sector initiatives that train low-skill, low-income individuals for in demand jobs
Increase access to capital to start small businesses among historically underserved populations
Support early childhood education and reducing costs through workforce support programs

All of these recommendations are not new to MEPC. We’ve long advocated for the enhanced investment in sector initiatives such as career pathways for low-skilled adults. We are also housed in a community development finance institution that has over 17 years of experience in lending to minority owned small businesses – especially in rural communities.

What is different today is that there is convergence around these recommendations with strategies that are currently being lifted up by the business community in Blueprint Mississippi. We must recognize the significance of this moment and work together to build the Mississippi that we all want to see for our children and grand children.

Authors: Sarah Welker, Policy Analyst
Ed Sivak, MEPC Director

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