Iowa's Education & The Economy

Cff972b45e6ea7823fd6a2a231c4e659?s=47 Tom Schenk Jr
September 26, 2011

Iowa's Education & The Economy

Everyone has some belief that education affects the economy, both for the individual student and society. This presentation provides evidence of the linkage between education and the economy with a particular context for Iowa.

Cff972b45e6ea7823fd6a2a231c4e659?s=128

Tom Schenk Jr

September 26, 2011
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Transcript

  1. None
  2. None
  3. National Unemployment 0 2 4 6 8 10 12 14

    16 18 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Less than high school H.S. graduate Some college Bachelors’ or higher
  4. Bachelor’s recipients earn $1,038 per week compared to $646 for

    those only with a high school degree. Nationally, the average earnings per week was $782 in 2010. There is a clear relationship between education and earnings. National Income $0 $500 $1,000 $1,500 $2,000 Doctoral degree Professional degree Master's degree Bachelor's degree Associate degree Some college, no degree High-school graduate Less than a high school diploma
  5. None
  6. Iowa Employment Ratio 0% 1% 2% 3% 4% 5% 6%

    7% Less than a high school diploma High-school graduate Some college or Associate's Degree Bachelor's Degree or Higher
  7. Sometimes workers can become frustrated and “exit the labor market”

    by stopping their job search. The “employment rate” accounts for this by calculating the percentage of people who are employed, regardless of their labor market status. Iowa Employment Ratio 0% 20% 40% 60% 80% 100% Less than a high school diploma High-school graduate Some college or Associate's Degree Bachelor's Degree or Higher
  8. Local Unemployment

  9. Regional Education

  10. Regional Education

  11. Regional Education

  12. Regional Education

  13. Median Wages Leavers at first make earn more money as

    completers finish school. However, upon graduation, completers begin to earn more by 2004—two years after graduation. By 2008, completers’ median wages were $29,592. $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2002 2003 2004 2005 2006 2007 2008
  14. Associate of Applied Science AAS Recipients earned higher wages than

    any other group. By 2003, median earnings were $12,433. By 2008, earnings were $37,121—$9,446 higher than wages for leavers. It begins to reflect the career-oriented mission of career and technical education. $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2002 2003 2004 2005 2006 2007 2008
  15. None
  16. Goal #1 Net present value calculates the value of completing

    a community college degree as a single dollar value. It accounts for various types of costs: Tuition costs Opportunity costs Time costs Net Present Value
  17. = $100 $1,994

  18. $41,962 = $100

  19. $53,578 = $100

  20. $35,364 = $100

  21. $21,860 = $100

  22. $-13,315 = $100

  23. $-13,315 $-20,702 = $100

  24. $-23,407 $-20,702 = $100

  25. Earnings & Employment

  26. None
  27. None
  28. None
  29. Tom SCHENK JR. Iowa Department of Education (515) 281-3753 tom.schenk@iowa.gov

    www.educateiowa.gov www.bls.gov/emp/ep_chart_001.htm www.economagic.com The Annual Condition of Iowa’s Community Colleges 2009, Iowa Department of Education Economic Returns & Career Transitions for Iowa Community College Students, Iowa Department of Education and Iowa Workforce Development U.S Census Bureau, 2007-2009 American Community Survey Bureau of Labor Statistics, Current Population Survey