Investing in a Skills2Compete Vision

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Investing in a Skills2Compete Vision

• The Benefits and Returns

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FOR A STRONGER ECONOMY
National Economy According to the Organization
for Economic Cooperation and Development (OECD),
even one extra year of postsecondary education
leadson average and in the long runto an
increase in output per capita of 4 to 7. OECD,
2001. The Well-Being of Nations
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FOR A STRONGER ECONOMY
Local Economies Increasing the average total
schooling within a city by two years will
increase individual wages of workers within that
city by 6 on average, regardless of personal
educational attainment. This is in addition to
the 10 increase an individual would receive for
increasing his/her own educational attainment by
two years. Rauch, J., 1991. Productivity Gains
from Geographic Concentration of Human Capital
Evidence from the Cities. NBER Working Paper,
3905.
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FOR A STRONGER ECONOMY
Productivity Within a firm, an additional year
of average total schooling among employees will
lead to an 8.5 increase in productivity in
manufacturing and a 12.7 increase in other
sectors. Black, S.E., Lynch L.M., 1996.
Human-Capital Investments and Productivity. The
American Economic Review 86 2, 263-267.
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FOR A BROADER TAX BASE
Increasing the number of adults with more than a
high school diploma but less than a bachelors
degree by 10 could increase annual federal tax
revenues by almost 14 billion.
Khatiwada, I., et al., 2007. The Fiscal Economic
Consequences of Dropping Out of High School
Estimates of the Tax Payments and Transfers
Received by Massachusetts Adults in Selected
Educational Subgroups. Center for Labor Market
Studies, Northeastern University, and US Census
Bureau, 2003. Educational Attainment 2000.
Calculation by The Workforce Alliance.
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SAVING PUBLIC DOLLARS
Increasing an individuals educational attainment
from a high school graduate to more than high
school but less than a bachelors degree saves
the government between 873-2,502 (in 2007
dollars), depending on a recipients ethnic group
and gender, in reduced use of public programs
such as food stamps, Medicaid, and TANF.
Vernez, G., Krop, R.A., Rydell, C.P., 1999.
Closing the Education Gap Benefits and Costs.
Center for Research on Immigration Policy, RAND
Education.
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FOR ECONOMIC SECURITY
Decreases Poverty Exposure to more than high
school but less than a bachelors degree by the
head of a household decreases a familys
likelihood of living below the poverty line by
35. U.S. Census Bureau, 2002
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FOR ECONOMIC SECURITY
Decreased Unemployment In 2006, the unemployment
rate was 6.8 for individuals with less than a
high school diploma and 4.3 for those with a
high school diploma, compared to 3.9 for those
with some college but no degree and 3 for those
with an associates degree.
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ABOUT SKILLS 2 COMPETE
Vision Every U.S. worker should have access to
the equivalent of at least two years of education
or training past high schoolleading to a
vocational credential, industry certification, or
one's first two years of collegeto be pursued at
whatever point and pace makes sense for
individual workers and industries. Every person
must also have the opportunity to obtain the
basic skills needed to pursue such education.
www.Skills2Compete.org
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VISIT US

• www.Skills2Compete.org
• National and state research showing demand for
  middle-skill jobs
• Profiles of state efforts
• Information about national policymakers and
  politicians making Americas competitiveness
  conversation include middle-skill jobs
• Evidence of local and national demand for a
  commitment to investing in the education and
  training that will prepare Americas workforce
  for middle-skill jobs
• Resources that can help stakeholders get the word
  out about the need for a new 21st-century
  approach to skills
• Media resources including profiles of the
  campaigns endorsers
• Opportunities to endorse the campaign, take
  action, and more!

www.Skills2Compete.org
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CONTACT US
c/o The Workforce Alliance 1701 K Street N.W.,
Ste. 750 Washington, D.C. 20006
P. 202.223.8991  F. 202.223.8354
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