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America’sPerfect Storm
Irwin KirschETS
National Press Club
Washington, D.C.
February 5, 2007
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Three Forces Are Changing Our Nation’s Future
• Inadequate literacy and numeracy skills
among large segments of our student and
adult populations
• An ongoing shift in the demographic profile of
our population, powered by the highest
immigration rates in nearly a century
• The continuing evolution of the economy and
the nation’s job structure, requiring higher
levels of skills from an increasing proportion
of workers
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Let us not be content to wait and see
what will happen, but give us the determination
to make the right things happen.
— Horace Mann
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Inadequate Skill Distributions
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Literacy surveys conducted by ETS have represented literacy along scales divided into 5 levels. National and international committees have judged that skills in Levels 3 and higher are needed for participation in modern societies.
Less Proficient More Proficient
National Adult Literacy Survey (NALS, 1992)
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150
200
250
300
350
177, 0-8 years of schooling
231, 9-12 years of schooling
270;268, HS Diploma; GED
294, some college
308, 2-year degree322, 4-year degree
336, graduate degree
< Level 1
Level 1
Level 2
Level 3
Level 4
Literacy skills are related to highest level of educational attainment.
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27
58
88
98
Level 1 Level 2 Level 3 Level 4 Level 5
Percentage
Passing
GED
SOURCE: The Literacy Proficiencies of GED Examinees: Results from the GED-NALS
Comparison Study. (1995). Baldwin, J., Kirsch, I., Rock, D., & Yamamoto, K.
**
Adults in Levels 3 and higher had a better than 90 percent chance of passing the GED.
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Half of America’s adults lack literacy skills needed for the 21st century.
All Adults Asian Black Hispanic White
35 3020
14
41
13
9
33
17
2028 33
49
12
32
33
44
33
30
100
80
60
40
20
0
20
40
60
80
100
Percentage of Adults 16-65 Years Old at:
Level 1 Level 2 Level 3 Levels 4/5
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High school graduation rates peaked at 77% in 1969 and have remained in the 70% range since 1995.
Graduates as a
Percentage of
17-Year-Old
Population
Note: Graduates are of regular day-school programs.Source: U.S. Department of Education, National Center for Education Statistics
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Average achievement gaps in both reading and math have remained stubbornly unchanged.
Reading 1984 1994 2004
White-Black
Age 13 26 31 22
Age 17 32 30 29
White-Hispanic
Age 13 33 30 24
Age 17 27 33 29
Math 1986 1996 2004
White-Black
Age 13 24 29 27
Age 17 29 27 28
White-Hispanic
Age 13 19 25 23
Age 17 24 21 24
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Math Reading Science
U.S. Average Score 483 495 491
OECD Average 500 494 500
U.S. Rank Among 29
Countries
24th 15th 20th
The U.S. is not among the world’s leaders in any area of educational achievement.
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Shifting Demographics
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Growth
1980-2000
Growth
2000-2020
Natives, 25-54, All races 26.7 0.0
Natives, 55+, All races 2.7 13.3
Immigrants 9.3 6.0
TOTAL 38.7 19.4
Note: Numbers represent millions of adults.
America’s labor force will grow more slowly over the next 20 years, with almost none of the growth expected to come from native-born workers.
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Time Period
Population
Growth
(millions)
Net
International
Migration
(millions)
Net
Immigration
as a
Percentage of
Population
Change
April 2000-July 2005
(Actual)15.0 6.3 42
2005-2010 Projected 13.4 6.7 50
2011-2015 Projected 13.4 7.1 53
Immigration is projected to account for more than half of our population growth between now and 2015.
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Immigration patterns have changed dramatically over the past 100 years. New immigrants to the U.S. are quite diverse with respect to their country of origin.
0%
20%
40%
60%
80%
100%
1820–1940 1951–60 1971–80 1991-96
Years
Proportions
Asia
Central/SouthAmerica
Canada
Europe
Australia andNew Zealand
Africa
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Educational AttainmentNumber
(millions)Percentage
1-12 years, no diploma 1.7 34
high school diploma or GED 1.1 23
13-15 years .8 15
Bachelor’s degree .8 17
Master’s or higher degree .6 11
Total 5.0 100
Between 2000 and 2004, new immigrants entered the U.S. with a broad range of educational backgrounds.
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Educational
Attainment
Only
Speaks
English
(%)
Speaks
English
Very
Well
(%)
Speaks
English
Well
(%)
Does
Not
Speak
English
Well
(%)
Does
Not
Speak
English
(%)
1-12 years, no
diploma6 6 9 32 47
High school
diploma or GED9 16 19 36 21
13-15 years 16 30 24 21 9
Bachelor’s
degree14 36 28 17 5
Master’s or
higher degree11 48 27 12 3
Total 10 22 19 26 23
80% of new immigrants without a high school diploma report that they do not speak English well or at all.
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Educational
Attainment
Total
Births
Out-of-Wedlock
Births
Percentage
Out of
Wedlock
<12 or 12, no diploma 563,288 350,847 62.2
12 years, diploma
or GED
743,151 381,060 51.3
13-15 years 666,328 242,920 36.7
Bachelor’s degree 268,238 33,669 12.6
Master’s or higher
degree
62,313 2,691 4.3
All 2,298,318 1,011,077 44.0
Source: 2004 American Community Surveys; public-use files; tabulations by authors.
44% of births to women under 30 are out of wedlock. The majority of these births take place among women with either no high school diploma or no postsecondary education.
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A Changing Economy
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Occupational
group
1984
millions
2000
millions
Absolute
change in
millions of
adults
Percentage
change
All 16+ 105.0 135.0 30.0 29.0
High literacy 34.0 54.0 20.0 57.0
Moderate literacy 70.0 80.0 10.0 14.3
Jobs associated with college-level skills and education accounted for two-thirds of the job growth between 1984 and 2000.
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Occupational
group
2004
millions
2014
millions
Absolute
change in
millions of
adults
Percentage
change
All 16+ 146.0 165.0 19.0 13.0
High literacy 49.0 58.0 9.0 18.0
Moderate literacy 97.0 107.0 10.0 10.0
Jobs requiring high levels of education and skills are projected to account for almost half of the job growth over the next decade.
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Year
HS grad
to
HS dropout
Some
college
to
HS grad
B.A.+
to
HS grad
B.A.+
top skills
to
HS grad
top skills
B.A.+
avg. skills
to
HS grad
avg. skills
B.A.+
low skills
to
HS grad
low skills
1988 1.38 1.20 1.58 1.69 1.01 1.14
1997 1.31 1.14 1.81 1.68 1.35 1.18
2001 1.35 1.17 2.01 2.22 1.47 1.29
Comparative differences in the annual earnings of U.S.
adults have widened for those with higher levels of
education and higher levels of skills.
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Wage and salary earnings reflected a shared prosperity through 1975. Between then and now we have seen a growing inequality.
Percentage Change in Earnings Since 1961
Tabulations of annual March Current Population
Survey Data, by David Ellwood, Harvard University.
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What might the future look like?
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70 million adults in Levels 1/2
Distribution of Literacy Scores Found in the National Adult Literacy Survey (1992)
Less Proficient More Proficient
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70 million increases to 119 million
in 2030
Less Proficient More Proficient
Average literacy scores are expected to decline between 1992 and 2030, with an increase in the amount of inequality.
Less Proficient More Proficient
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1973 1989 2004 % Change
ALL $27,618 $22,852 $20,700 -25
Education
<12 yrs, no diploma 22,686 15,998 16,000 -30
HS diploma/GED 30,819 22,854 21,000 -32
13-15 years 28,018 26,756 25,000 -9
Bachelor’s degree 35,390 36,565 35,000 -1
Master’s or higher 40,826 38,088 45,000 10
Note: Earnings are in 2004 dollars.
Average earnings of men 20-29 years of age have decreased for all except those attaining the highest levels of education, resulting in greater inequality.
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Decile All Men Women White Black Hispanic
Total 26.46 25.77 27.18 30.25 14.92 14.57
2nd 2.20 1.73 2.72 0.67 4.26 2.60
4th 8.84 6.40 11.04 6.26 15.07 12.94
6th 15.35 9.01 20.95 13.61 26.54 19.91
8th 32.75 31.49 33.98 33.05 44.13 33.98
10th 76.15 75.76 76.72 76.53 72.13 79.47
Percent among adults who are now 36-43 years old
Reading and math scores in high school have a strong influence on the likelihood of completing 16 or more years of schooling.
Changing
Economy
Divergent Skill
Distributions
Demographic
Shifts
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For more information contact:
Irwin Kirsch
ETS
Princeton, N.J. 08541
e-mail: [email protected]
Office: (609) 734-1516
For Media Inquiries contact:
Tom Ewing
609-683-2803
www.ets.org/stormreport