Implications of Educational Attainment Trends for Labor Market Outcomes. ACT Research Report Series, 2012 (7)

Well-educated workers have higher wages, higher wage growth, and lower unemployment rates than workers with lower levels of educational attainment. While earnings have traditionally grown with educational attainment, the gaps have become more pronounced in recent years. While returns to education have increased, this research shows that educational attainment has been stagnant or declining over the past decade. High school graduation rates have fallen from historic highs in the 1970's, college enrollment rates have leveled off, and college graduation rates are stable or declining. The research also examined patterns in educational attainment by race/ethnicity, gender, and 8th grade test scores. At risk minorities, males, and students with low 8th grade test scores had much less secondary and postsecondary success than other students. The achievement gaps persisted over the decade. Low educational attainment will leave many young workers with high unemployment rates, chronically low wages, and low wage growth. (Contains 18 figures and 23 footnotes.)