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Has Education Paid Off for Black Workers?

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  • John Schmitt
  • Janelle Jones

Abstract

Over the past three decades, the “human capital” of the employed black workforce has increased enormously. In 1979, only one-in-ten (10.4 percent) black workers had a four-year college degree or more. By 2011, more than one in four (26.2 percent) had a college education or more. Over the same period, the share of black workers with less than a high school degree fell from almost one-third (31.6 percent) to only about one in 20 (5.3 percent). The black workforce has also grown considerably older. In 1979, the median employed black worker was 33 years old; today, the median is 39. Economists expect that increases in education and work experience will increase workers' productivity and translate into higher compensation. But, the share of black workers in a “good job” – one that pays at least $19 per hour (in inflation-adjusted 2011 dollars), has employer-provided health insurance, and an employer-sponsored retirement plan – has actually declined. This paper looks at this trend and policies that would have a large, positive impact on the quality of jobs for black workers.

Suggested Citation

  • John Schmitt & Janelle Jones, 2013. "Has Education Paid Off for Black Workers?," CEPR Reports and Issue Briefs 2013-11, Center for Economic and Policy Research (CEPR).
  • Handle: RePEc:epo:papers:2013-11
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    File URL: http://www.cepr.net/documents/publications/black-good-jobs-2013-06.pdf
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    References listed on IDEAS

    as
    1. Roland G. Fryer & Steven D. Levitt, 2004. "The Causes and Consequences of Distinctively Black Names," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(3), pages 767-805.
    2. John Schmitt, 2008. "The Decline of Good Jobs:," Challenge, Taylor & Francis Journals, vol. 51(1), pages 5-25.
    3. Baker,Dean, 2007. "The United States since 1980," Cambridge Books, Cambridge University Press, number 9780521860178, January.
    4. Pager, Devah & Western, Bruce & Bonikowski, Bart, 2009. "Discrimination in a Low-Wage Labor Market: A Field Experiment," IZA Discussion Papers 4469, Institute of Labor Economics (IZA).
    5. John Schmitt, 2009. "Inequality as Policy: The United States Since 1979," CEPR Reports and Issue Briefs 2009-40, Center for Economic and Policy Research (CEPR).
    6. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    7. John Schmitt, 2005. "How Good is the Economy at Creating Good Jobs?," CEPR Reports and Issue Briefs 2005-33, Center for Economic and Policy Research (CEPR).
    8. Baker,Dean, 2007. "The United States since 1980," Cambridge Books, Cambridge University Press, number 9780521677554, January.
    9. John Schmitt & Janelle Jones, 2012. "Where Have All the Good Jobs Gone?," CEPR Reports and Issue Briefs 2012-20, Center for Economic and Policy Research (CEPR).
    10. John Schmitt & Janelle Jones, 2013. "Making Jobs Good," Challenge, Taylor & Francis Journals, vol. 56(4), pages 6-21.
    11. Dean Baker, 2006. "Universal Voluntary Accounts: A Step Towards Fixing the Retirement System," CEPR Reports and Issue Briefs 2006-30, Center for Economic and Policy Research (CEPR).
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    Cited by:

    1. Janelle Jones & John Schmitt, 2014. "A College Degree is No Guarantee," CEPR Reports and Issue Briefs 2014-08, Center for Economic and Policy Research (CEPR).

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    More about this item

    Keywords

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    JEL classification:

    • J - Labor and Demographic Economics
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • I - Health, Education, and Welfare
    • I2 - Health, Education, and Welfare - - Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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