San Diego Union-Tribune (Sunday)

UP TO 30M IN U.S. HAVE SKILLS TO EARN 70 PERCENT MORE

- BY STEVE LOHR Lohr writes for The New York Times.

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.

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