San Diego Union-Tribune (Sunday)
UP TO 30M IN U.S. HAVE SKILLS TO EARN 70 PERCENT MORE
For the past four decades, incomes rose for those with college degrees and fell for those without one. But a body of recent and new research suggests that the trend need not inevitably continue.
As many as 30 million U.S. workers without four-year college degrees have the skills to realistically move into new jobs that pay on average 70 percent more than their current ones. That estimate comes from a collaboration of academic, nonprofit and corporate researchers who mined data on occupations and skills.
The findings point to the potential of upward mobility for millions of Americans.
But the research also shows the challenge that the workers face: They currently experience less income mobility than those holding a college degree, which is routinely regarded as a measure of skills. That widely shared assumption, the researchers say, is deeply flawed.
In recent years, labor experts and workforce organizations have argued that hiring should increasingly be based on skills rather than degrees, as a matter of fairness and economic efficiency. The research provides quantified evidence that such a shift is achievable.
The researchers published a broad look at the jobs, wages and skills of workers who have a high school diploma but not a four-year college degree as a National Bureau of Economic Research working paper this year. They found a significant overlap between the skills required in jobs that pay low wages and many occupations with higher pay — a sizable landscape of opportunity.
For skills, the researchers used Labor Department classifications. They defined low-wage jobs as those paying less than the nation’s median annual salary of $38,000. Middle-wage occupations were those paying from $38,000 to $77,000, with the midpoint of $57,500. High-wage jobs paid more than $77,000.
The highest-paid workers without college degrees were in computer, technical and management jobs. The lowest-paid were clustered in personal care and food preparation jobs.
For 74 percent of new U.S. jobs, employers frequently require fouryear college degrees, according to a recent study. Screening by college degree excludes roughly two-thirds of U.S. workers. But the effect is most pronounced on minorities, eliminating 76 percent of Blacks and 83 percent of Latinos.