Income, Education, & Income, Education, & EthnicityEthnicity

Erin DawsonErin Dawson

Ball State UniversityBall State University

Geography 265Geography 265

IntroductionIntroduction

Purpose of ResearchPurpose of Research– Show the relationship between education, Show the relationship between education,

income, and ethnicityincome, and ethnicity HypothesisHypothesis

– Strong correlation b/w education Strong correlation b/w education attainment and income statusattainment and income status

– Strong correlation b/w income and ethnicityStrong correlation b/w income and ethnicity– Strong correlation b/w education Strong correlation b/w education

attainment and ethnicityattainment and ethnicity

MethodologyMethodology

Mapping household income, families Mapping household income, families of dissimilar education levels, and of dissimilar education levels, and families of diverse ethnicities within families of diverse ethnicities within the Indianapolis MSAthe Indianapolis MSA

Analyzing maps to determine if a Analyzing maps to determine if a relationship between the three relationship between the three variables existvariables exist

Using research articles to support my Using research articles to support my findings and provide statistics findings and provide statistics

DefinitionsDefinitions

IncomeIncome– Looked at income per capita in and Looked at income per capita in and

around the Indianapolis MSAaround the Indianapolis MSA EthnicityEthnicity

– African AmericanAfrican American– CaucasianCaucasian– HispanicHispanic

DefinitionsDefinitions

Education Attainment:Education Attainment:– Males w/ No SchoolingMales w/ No Schooling– Males w/ High School DiplomaMales w/ High School Diploma– Males w/ College Bachelor Degrees or Males w/ College Bachelor Degrees or

HigherHigher Education Attainment:Education Attainment:

– Females w/ No SchoolingFemales w/ No Schooling– Females w/ High School DiplomaFemales w/ High School Diploma– Females w/ College Bachelor Degrees or Females w/ College Bachelor Degrees or

HigherHigher

Income & EducationIncome & Education

Lack of a High School Diploma has a Lack of a High School Diploma has a considerable influence on income considerable influence on income groupsgroups

Individuals without high school diploma Individuals without high school diploma earn less than $25,000/yearearn less than $25,000/year

Obtainment of a high school diploma Obtainment of a high school diploma slightly increases income per year, slightly increases income per year, however obtainment of a Bachelor however obtainment of a Bachelor Degree greatly increases income for Degree greatly increases income for individual households (Pittenger, 2003)individual households (Pittenger, 2003)

Income & EducationIncome & Education Cheaper living and Cheaper living and

government housing is government housing is usually found in and around usually found in and around the downtown areasthe downtown areas– There are several block There are several block

groups near downtown, with a groups near downtown, with a few outlying areas, that few outlying areas, that contain a greater population contain a greater population of females with no schooling of females with no schooling at allat all

– As you move away from the As you move away from the city, with the exception of city, with the exception of downtown high rises, you will downtown high rises, you will find higher education levelsfind higher education levels

– The darker regions indicate The darker regions indicate higher levels of females with higher levels of females with no schoolingno schooling

Income & EducationIncome & Education Higher Education AttainmentHigher Education Attainment

– While Females with high school diplomas are widely dispersed, there is a distinct While Females with high school diplomas are widely dispersed, there is a distinct region of females who have obtained a Bachelor degree (in and around the outer region of females who have obtained a Bachelor degree (in and around the outer region of the I465 loop ,with a higher concentration just north of the city)region of the I465 loop ,with a higher concentration just north of the city)

Focus:

Darker regions=

Higher concentrations

Income & EducationIncome & Education You can see the same pattern with the You can see the same pattern with the

male populationmale population

Income & EducationIncome & Education

IncomeIncome – is received as a result of the normal business is received as a result of the normal business

activities of an individual or a businessactivities of an individual or a business Four levels of income defined:Four levels of income defined:

– Low income status ($0-$25,000)Low income status ($0-$25,000)– Low/Mid income status ($25,001-$50,000)Low/Mid income status ($25,001-$50,000)– Mid/High income status ($50,001-$75,000)Mid/High income status ($50,001-$75,000)– High income status ($75,001 or above)High income status ($75,001 or above)

Income & EducationIncome & Education

One of the best documented One of the best documented relationships in economics is the link relationships in economics is the link between education and incomebetween education and income

Education provides skills that raises Education provides skills that raises an individuals productivity (Pittenger, an individuals productivity (Pittenger, 1999)1999)

In the Indianapolis MSA, there is a In the Indianapolis MSA, there is a notable correlation between income notable correlation between income and educationand education

Income & EducationIncome & Education The lowest income areas in The lowest income areas in

the Indianapolis MSA are the Indianapolis MSA are mostly located around the mostly located around the downtown area with a few downtown area with a few block groups that are block groups that are clustered in points around clustered in points around the outside edge of the citythe outside edge of the city

The highest incomes are The highest incomes are found just outside of the I465 found just outside of the I465 loop where many new loop where many new subdivisions are being builtsubdivisions are being built

There is a high concentration There is a high concentration of income just north of the of income just north of the city, where developments city, where developments have been establishedhave been established

Note the few block groups in Note the few block groups in the downtown area that have the downtown area that have a high income statusa high income status

Income & EducationIncome & Education

If you compare the maps of education If you compare the maps of education and income, you find the following:and income, you find the following:– The high income areas correlate to The high income areas correlate to

males and females that have obtained a males and females that have obtained a Bachelor degree or higherBachelor degree or higher

– The low income areas correlate to males The low income areas correlate to males and females that have no schooling at alland females that have no schooling at all

– Some low income areas correlate to Some low income areas correlate to males and females that have just a high males and females that have just a high school diploma. school diploma.

Income & EducationIncome & Education Females and IncomeFemales and Income

Income & EducationIncome & Education Female & IncomeFemale & Income

Income & EducationIncome & Education Males & IncomeMales & Income

Income & EducationIncome & Education Males & IncomeMales & Income

Support for Income & Support for Income & Education FindingsEducation Findings

More Education leads consistently to more More Education leads consistently to more income and higher living standardsincome and higher living standards

Not surprisingly, less education leads to less Not surprisingly, less education leads to less income and lower living standards (Mortenson, income and lower living standards (Mortenson, 2004)2004)

Someone with a high school diploma will make Someone with a high school diploma will make an average annual income of $20,000 or lessan average annual income of $20,000 or less

A college graduate will average $48,000 a yearA college graduate will average $48,000 a year That’s a difference of $1.4 million over their That’s a difference of $1.4 million over their

working years (Mortenson, 2004)working years (Mortenson, 2004)

Support for Income & Support for Income & Education FindingsEducation Findings

Higher education has become a tool Higher education has become a tool to preserve and strengthen social to preserve and strengthen social stratification and an important force stratification and an important force dividing Americansdividing Americans

Thus, making the rich richer and the Thus, making the rich richer and the poorer poorer.poorer poorer.

This also makes it hard for those of This also makes it hard for those of low income status to be able to low income status to be able to afford a higher educationafford a higher education

Support for Income & Support for Income & Education FindingEducation Finding

Reasons for gap in income and education:Reasons for gap in income and education: The decline in state funding has made college less The decline in state funding has made college less

affordable and less accessible for many low income affordable and less accessible for many low income studentsstudents

Institutions have raised tuition and fees to offset the loss Institutions have raised tuition and fees to offset the loss of state support, thus charges to students have risen far of state support, thus charges to students have risen far faster than family incomefaster than family income

Cost of education loan programs have been viewed as Cost of education loan programs have been viewed as barriers, not vehicles, to participating in higher education barriers, not vehicles, to participating in higher education (Mortenson, 2004)(Mortenson, 2004)

This leaves students with the unmet bills from high This leaves students with the unmet bills from high institutional charges, reduced taxpayer support, and institutional charges, reduced taxpayer support, and lagging parental contributions. lagging parental contributions.

The demonstrated unmet financial needs of students from The demonstrated unmet financial needs of students from families with incomes of less than $40,000/year are being families with incomes of less than $40,000/year are being ignoredignored

Ethnicity & IncomeEthnicity & Income

The three ethnicities mapped are:The three ethnicities mapped are:– African AmericanAfrican American– HispanicHispanic– CaucasianCaucasian

Predictions:Predictions:– Hispanics will occupy the lowest income areasHispanics will occupy the lowest income areas– African Americans will predominantly occupy African Americans will predominantly occupy

the low/mid income areasthe low/mid income areas– Caucasians will occupy the majority of the Caucasians will occupy the majority of the

mid/high and high income areas.mid/high and high income areas.

Ethnicity & IncomeEthnicity & Income African AmericansAfrican Americans

Highest Highest concentration of concentration of African Americans African Americans are located in and are located in and around the around the immediate immediate downtown areadowntown area

There a few outlying There a few outlying concentrations of concentrations of the populationthe population

Ethnicity & IncomeEthnicity & Income African AmericanAfrican American

Darker areas Darker areas of African of African American American population population correlates to correlates to the lighter the lighter regions of regions of incomeincome

Implying that Implying that there is a there is a somewhat somewhat strong strong relationship relationship between the between the two two variables.variables.

Ethnicity & IncomeEthnicity & Income CaucasianCaucasian

The highest The highest concentrations of concentrations of Caucasians in the Caucasians in the Indianapolis area Indianapolis area lie in and around lie in and around the I465 loop. the I465 loop.

This area is highly This area is highly developed and developed and tends to obtain tends to obtain persons of higher persons of higher income statusincome status

Ethnicity & IncomeEthnicity & Income CaucasianCaucasian

The darker areas The darker areas of the Caucasian of the Caucasian map (indicating map (indicating higher higher population) population) correlates to the correlates to the darker regions of darker regions of the income map the income map (indicating higher (indicating higher income status)income status)

The outlying The outlying areas of both areas of both maps also relate maps also relate to one another to one another indicating a indicating a relationship relationship between the between the Caucasian Caucasian population and population and the mid/high the mid/high income statusincome status

Ethnicity & IncomeEthnicity & Income HispanicHispanic

Surprisingly, there is Surprisingly, there is a high Hispanic a high Hispanic population in the population in the Indy MSAIndy MSA

With the majority With the majority being located around being located around the culture regions the culture regions of Indianapolis, of Indianapolis, particularly in the particularly in the downtown area and downtown area and just north of the city just north of the city

Ethnicity & IncomeEthnicity & Income HispanicHispanic

Correlation Correlation between the between the darker regions darker regions of the Hispanic of the Hispanic map (indicating map (indicating higher higher concentrations concentrations of population) of population) and the lighter and the lighter regions of the regions of the Income map Income map (indicating (indicating lower income lower income status)status)

Support for Ethnicity & Support for Ethnicity & Income FindingsIncome Findings

Hispanic:Hispanic:– Supreme Court’s decision states that Hispanic Supreme Court’s decision states that Hispanic

students also have a right to desegregation students also have a right to desegregation remediesremedies

– Population has grown almost five times faster than Population has grown almost five times faster than non-Hispanic populations in the last ten yearsnon-Hispanic populations in the last ten years

– 87% living in the metropolitan areas, they are the 87% living in the metropolitan areas, they are the nations most metropolitan populationnations most metropolitan population

– Gaps in educational attainment and earnings Gaps in educational attainment and earnings between Hispanics and non Hispanic continue to risebetween Hispanics and non Hispanic continue to rise

– Have the highest drop out rate of any minority group Have the highest drop out rate of any minority group in this nation, representing 10% of the nations in this nation, representing 10% of the nations students and only 5% of college students (Fernandez students and only 5% of college students (Fernandez & Guskin, 1999)& Guskin, 1999)

Support for Income & Support for Income & Ethnicity FindingsEthnicity Findings

African AmericansAfrican Americans– Faces similar challenges as Hispanic, in Faces similar challenges as Hispanic, in

the idea that face minority discrimination, the idea that face minority discrimination, and represent a high number of the low and represent a high number of the low income bracket of societyincome bracket of society

Caucasians:Caucasians:– Tend to be offered better education Tend to be offered better education

opportunities, due to higher income levels opportunities, due to higher income levels and parental contributionand parental contribution

ConclusionsConclusions

Using spatial analysis, you are able to Using spatial analysis, you are able to visibly see the relationship that exists visibly see the relationship that exists among income, education, and ethnicityamong income, education, and ethnicity

Analysis of maps:Analysis of maps:– There is a direct correlation between There is a direct correlation between

education and incomeeducation and income– The higher the educational attainment the The higher the educational attainment the

more likely the person or household will fall more likely the person or household will fall into a high income group (Pittenger, 2003)into a high income group (Pittenger, 2003)

ConclusionsConclusions Education and Ethnicity:Education and Ethnicity:

– Caucasians showed the highest levels of higher Caucasians showed the highest levels of higher education, while Hispanics showed the lowest education, while Hispanics showed the lowest level of educationlevel of education

Education and Income:Education and Income:– Those with the lowest education levels were Those with the lowest education levels were

mostly located in the low income regions of the mostly located in the low income regions of the city, while those with the highest income were city, while those with the highest income were located in high income neighborhoods and located in high income neighborhoods and newly developed regionsnewly developed regions

Income & Ethnicity:Income & Ethnicity:– Caucasians tend to be located in the high Caucasians tend to be located in the high

income area, while African Americans and income area, while African Americans and Hispanic were predominantly located in the Hispanic were predominantly located in the lower income regions of the citylower income regions of the city

Conclusion LimitationsConclusion Limitations

Notably, some persons and some Notably, some persons and some householders with four year degrees have householders with four year degrees have low incomes. These might include low incomes. These might include graduate students, housewives, and graduate students, housewives, and others not in the labor force or employed others not in the labor force or employed full-timefull-time

The Hispanic maps didn’t seem to follow The Hispanic maps didn’t seem to follow the exact patterns I think they might, the exact patterns I think they might, maybe showing some limitations in the maybe showing some limitations in the data collecteddata collected

References & Tools UsedReferences & Tools Used Data for maps obtained by the Census Bureau Data for maps obtained by the Census Bureau

– http://factfinder.census.gov/home/saff/main.htmlhttp://factfinder.census.gov/home/saff/main.html Data mapped by ArcGISData mapped by ArcGIS Statistical information and facts provided byStatistical information and facts provided by

– Pittenger, D (2003). Educational Attainment and Pittenger, D (2003). Educational Attainment and Income for Persons and Households. Income for Persons and Households.

Washington Washington Population Survey, 3,Population Survey, 3, 6-9. 6-9.– Fernandez, R., & Guskin, J. (1999). Hispanic Fernandez, R., & Guskin, J. (1999). Hispanic

Students Students and School Desegregation. In Willis D. and School Desegregation. In Willis D. Hawley (ED.), Hawley (ED.), Effective School Desegregation: Effective School Desegregation: Equity, quality, and Equity, quality, and feasibilityfeasibility. London: Sage . London: Sage Publications. Publications.

ReferencesReferences

Mortenson, T.G. (2004). Poverty, Mortenson, T.G. (2004). Poverty, Race, and Race, and the Failure of Public the Failure of Public Policy:  The Crisis of Policy:  The Crisis of Access in Access in Higher Education. Higher Education. Education Education Today, 12,Today, 12, 12-16. 12-16.