Got Human Capital?

Abstract

HUMAN capital. It's why our neighbors have good jobs; it's why the teenager down the block can invent a new technology to help deaf people communicate. It's why we're able to compete economically within and among our 50 states and with other nations. It's why novels are written and why history is documented. And human capital comes from education. The Well-Being of Nations: The Role of Human and Social Capital, a 2001 report from the Organisation for Economic Co-operation and Development, took the lead in examining this connection. (This report is available at www.oecd.org; search on the title.) It correlated human capital (the knowledge and skills derived from education, training, and experience) and national well-being (economic growth, better health, lower crime, political and community participation, and social cohesion). Evidence from the Census According to Educational Attainment: A 2000 Census Brief -- a U.S. Census Bureau report released in August 2003 and summarized in a new issue of Progress of Reform from the Education Commission of the States -- education levels in the United States are high and rising. In 2000, four out of five adults had completed high school (contrasted with just 24% of the population in 1940 and just over 50% in 1970), and more than half the U.S. population aged 25 and older had completed at least some college education. The six states with the lowest high school completion rates in 1990 (Mississippi, Kentucky, West Virginia, Arkansas, Alabama, and Tennessee) were, in 2000, among the states with the largest growth in the percentage of people aged 25 and older who had completed high school or more. However, it is possible that attainment may be leveling off. If one disaggregates the data by age group, it appears that younger generations are less educated than the generations they will succeed. Closing the College Participation Gap Although these data demonstrate that we've made strides in our development of human capital, a newly released report, Closing the College Participation Gap: A National Summary, looks at current conditions related to postsecondary access and participation. (This report and others in the same series are available at www.ecs.org.) Author Sandra Ruppert, who is program director of the Education Commission of the States' Center for Community College Policy, presents a sample of findings gleaned primarily from her analysis of 2000 census data: * The projected double-digit percentage growth in traditional college- age enrollments during the next decade has captured national attention. But the less-noticed story is that half of the states probably will see either little or no growth or even an actual decline in the numbers of students attending college. * It's not just about the kids anymore: adults now account for nearly half of all college enrollments. * Less than 38% of the 19-year-olds who had graduated from high school by 1999-2000 had enrolled in college by fall 2000. * Nearly 34 million people -- 12.4% of the U.S. population -- live below the poverty line. * One of every 10 teenagers between the ages of 16 and 19 is considered a dropout -- neither a high school graduate nor currently enrolled in school. * More than 13 million foreign-born people legally entered the United States during the past decade, but just six states absorbed over half of the influx. * The aging of the baby boomers over the next decade will result in dramatic changes in the age structure of the U.S. population. The report notes that the percentage of adults aged 25 and older who have less than a high school credential is lowest in Alaska, where less than 12% have not completed high school or received a GED. The next- closest states, with rates between 12% and 13%, are Minnesota, Montana, New Hampshire, Utah, Washington, and Wyoming. The U.S. average is 19.6% -- or nearly one in five students without a high school credential. …