Education: Not a Yellow Brick Road — Jack Metzgar for Working Class Studies

Our Overeducated Workforce: Who Benefits?

There are two “college jobs” (jobs requiring a bachelor’s degree) for every three “college graduates” (people 25 or older with a bachelor’s degree). What’s more, according to projections by the Bureau of Labor Statistics, this will not change much in the future as low-wage jobs grow somewhat faster than “college jobs,” while “college jobs” grow more slowly than the number of “college graduates.”

This blog has been an outlier in reporting this set of facts – see here, here and here. So while our readers should not be surprised by the recent report of the Federal Reserve of New York that “one in three college-educated workers typically holds a job that does not require a degree,” the mainstream media should be shocked.

Given these facts from official sources, it is a mystery how our leaders can go on and on about our growing “knowledge economy” and the necessity for everybody to go to college so they can get a good job.  One out of three college graduates now is not going to get one of those good college jobs; if everybody gets a bachelor’s degree, then about four out of five will not get a “college job.” It’s just arithmetic. How can President Obama very mistakenly say “the best anti-poverty program around is a first-class education” as two-thirds of jobs now and in 2022 will require only a high school diploma or less and most of these jobs pay low or very low wages? How is it that major newspapers, like the Chicago Tribune, still have headlines warning of a “shortage of educated employees”?

I don’t usually assume that there’s a conspiracy involved when our elite opinion-shapers purvey a widespread conception that is so out of whack with the facts.  I expect a certain level of class blindness among middle-class professionals (especially at the upper levels) on a wide range of subjects, and my expectations are only rarely disappointed. I think many of my lefty friends are too quick to attribute such mismatches to a kind of all-seeing executive committee of the ruling class that is purposely and systematically purveying propaganda that serves their interests.

But this past year I was interviewed by a documentary filmmaker, Jennifer Schuberth, who convinced me that I was looking in the wrong place for a conspiracy. Since the practical effect of having too many college graduates for the number of “college jobs” is to put downward pressure on the wages of those jobs, I figured any intentional design would require some kind of unwieldy conspiracy among employers. Schuberth, who is a Ph.D. anthropologist, has done some tracking of money flows, however, and she makes a pretty good case that the propaganda that blinds us may be orchestrated by the largest purveyor of college-student loans, Sallie Mae. You can watch her 12-minute doc Poorer by Degrees here. (I am one of the talking heads, but Schuberth’s editing and graphics have made me more lucid than usual.)

Sallie Mae, officially the SLM Corp., donated nearly $1 billion to found the non-profit Lumina Foundation, whose mission is “To increase the proportion of Americans with high-quality college degrees, certificates and other credentials to 60% by 2025.” Lumina gives money to various media outlets, think tanks, higher education associations, and universities to advance this mission. Lumina President and CEO Jamie Merisotis and Chief of Staff Holiday McKiernan are popular keynoters at gatherings of higher education administrators. Merisotis, for example, told the Oregon Higher Education Symposium that “[e]conomists and labor experts are quite clear” that the existing higher education system is not producing enough college graduates. Likewise, McKiernan emphasized to the Middle States Commission on Higher Education that “[e]xperts agree” that “by 2020 65% of jobs in America will require some form of postsecondary education.”

In these speeches when Lumina executives cite “experts” who “agree” and are “quite clear,” they actually refer to only one expert, Anthony Carnevale, director of the Georgetown University Center on Education and the Workforce, which is a major recipient of Lumina funds. Carnevale is also the source for the headline cited above warning of a “shortage of educated employees,” and he was the go-to guy for The Wall Street Journal to attack the NY Federal Reserve study as “wildly inaccurate.”

Carnevale authored a 2013 study, Recovery: Job Growth and Education Requirements through 2020, that purports to refute the Bureau of Labor Statistics’ occupational projections. BLS is not just an expert on this subject, it’s the premier expert. That does not mean BLS is right and Carnevale is wrong, but it does make it hard to see how Lumina executives can say “experts agree.”

Here’s the disagreement: BLS says the total number of jobs requiring “postsecondary education” of any sort is 33% now and will grow to 35% by 2022 (jobs requiring bachelor’s degrees will grow from 22% to 23%; those requiring associates degrees and other postsecondary credentials from 11% to 12%). Carnevale says the total is now 59% and will grow to be 65% by 2020, but he has an unusual definition of “college jobs.”

Carnevale dispenses with the BLS’s tedious job descriptions based on surveys of more than a million employers. Instead, he uses well-respected public opinion surveys and finds that many college graduates with jobs that BLS says do not require bachelor’s degrees tell surveyors that they are paid more than non-college-graduates doing the same or similar jobs. Carnevale thinks that when this happens, that person’s job should count as a “college job”: “Employers are still willing to pay more for the college degree – a symbol of a worker’s attainment of the knowledge, skills, and abilities that improve productivity.” Thus, if a barista at Starbucks with a college degree makes more than a barista at Starbucks who does not have a college degree, then that should count as a “college job” because the first barista has benefitted economically from his/her college education.

Well, that is one way to look at it, and a very creative one! But I’m glad the BLS doesn’t count that way. The NY Fed didn’t use Carnevale’s approach either, and as a result, found that though college graduates as a whole average substantially higher incomes than those without college, in 2013 one of four college graduates earned $27,000 or less.

You can probably guess how Sallie Mae, the giant of the college-loan industry, benefits from Carnevale’s reading of the need for more and more “postsecondary education” and from the Lumina Foundation’s mission to double the proportion of higher-educated workers. But watch Poorer by Degrees anyway. It paints a disturbing portrait of how some folks make money by exaggerating the American Dream.

Jack Metzgar
Chicago Working-Class Studies

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