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72 posts on "Labor Economics"

September 08, 2016

The Changing Role of Community-College and For-Profit-College Borrowers in the Student Loan Market



Editor’s note: The chart sources cited in this post have been corrected. (September 9, 12:55 p.m.)



In the first post in this series, we characterized the rapid transformation of the higher education market over the 2000-2015 period, a transformation that was led by explosive growth of the for-profit sector of higher education. In the second post, we found that most of this growth was driven by nontraditional students entering these institutions. Given this growth and the marked change in student composition, it is important to understand what impact these patterns might have on student loan originations, student loan volume, and the borrower pool in the various sectors of higher education. While a causal analysis is beyond the scope of this post, we instead examine descriptive patterns in these critical postsecondary outcomes. Was the growth in for-profit enrollment associated with a higher incidence of student loans? Were for-profit students, the main contributors of this growth, more or less likely to take student loans, and were they more or less likely to originate larger student loans? How about community-college borrowers, especially since community college enrollment increased noticeably over the period? This post focuses on these questions.

Continue reading "The Changing Role of Community-College and For-Profit-College Borrowers in the Student Loan Market" »

Posted by Blog Author at 7:00 AM in Credit, Education, Labor Economics, Student Loans | Permalink | Comments (0)

September 07, 2016

The Changing Face of the Higher Education Market



LSE_2016_The Changing Face of the Higher Education Market

The higher education landscape changed drastically over the last decade and a half. This evolution was largely characterized by the unprecedented growth of the private for-profit sector. In this post, we examine whether the evolution of the higher education market was associated with changes in the types of students who attended the institutions in various sectors of the market. Was the growth in enrollment spurred by an increased entry of traditional students? Or was it driven by an inflow of nontraditional students? Has student composition in higher education changed differentially between sectors? It is important for us to understand not only the growth in the higher education market but also which types of students contributed to this growth, because any changes in the composition of students may have implications for the composition of skilled workers in the labor market, for student loans, for loan repayment, and for the labor market returns to education investments.

Continue reading "The Changing Face of the Higher Education Market" »

Posted by Blog Author at 7:00 AM in Education, Labor Economics | Permalink | Comments (0)

September 06, 2016

The Changing Higher Education Landscape



LSE_2016_The Changing Higher Education Landscape

The past decade and a half has seen dramatic changes in the higher education landscape, characterized by significant growth in enrollment. This growth has been concentrated mostly in for-profit schools, where enrollment skyrocketed in the first decade of the period, nearly quadrupling between 2000 and 2011. The post-2011 period has been marked by an abatement of this growth. These patterns have strong implications not only for the higher education market but also for the labor force and the economy more broadly. Therefore, it is essential to understand the evolution of the different sectors of higher education over the last sixteen years; in this post we aim to do just that. How have the different sectors of higher education changed during this period, in particular the for-profit sector? Is the story here more about enrollment in existing schools, or were there differential entries and exits of for-profit schools? This post is the first in a four-part series looking at different aspects of the changing higher education market, including enrollment growth and its composition, student loans, and student loan defaults.

Continue reading "The Changing Higher Education Landscape" »

Posted by Blog Author at 7:00 AM in Education, Labor Economics | Permalink | Comments (4)

August 18, 2016

Just Released: Job Growth in the Region



LSE_Just Released: Job Growth in the Region


At today’s economic press briefing, we provided an update on regional economic conditions, with a particular focus on job growth in the region, and highlighted an important emerging labor market trend: the return of middle-wage jobs.

Continue reading "Just Released: Job Growth in the Region" »

Posted by Blog Author at 10:00 AM in Labor Economics, Regional Analysis | Permalink | Comments (2)

August 10, 2016

Puerto Rico’s Shrinking Labor Force Participation



LSE_Puerto Rico’s Shrinking Labor Force Participation

A key concern about Puerto Rico’s prospects is that its labor force participation rate, which is the percentage of the adult population either working or looking for work, has fallen sharply. Looking at the data shows that this decline cannot be attributed to any particular demographic segment. Instead, it is the consequence of an aging population, accelerated by a falling birth rate and outmigration of a relatively young cohort. Expected demographic trends will continue to put downward pressure on the participation rate over the medium term, creating a challenging headwind for the economy to overcome.

Continue reading "Puerto Rico’s Shrinking Labor Force Participation" »

August 09, 2016

Migration in Puerto Rico: Is There a Brain Drain?



LSE_Migration in Puerto Rico: Is There a Brain Drain?

Given Puerto Rico’s long-term economic malaise and ongoing fiscal crisis, it is no wonder that out-migration of the Island’s residents has picked up. Over the past five years alone, migration has resulted in a net outflow of almost 300,000 people, a staggering loss. It would make matters worse, however, if Puerto Rico were losing an outsized share of its highest-paid workers. But we find that, if anything, Puerto Rico’s migrants are actually tilted somewhat toward the lower end of the skills and earnings spectrum. Still, such a large outflow of potentially productive workers and taxpayers is an alarming trend that is likely to have profound consequences for the Island for years to come.

Continue reading "Migration in Puerto Rico: Is There a Brain Drain?" »

August 03, 2016

The Reluctance of Firms to Interview the Long-Term Unemployed



LSE_The Reluctance of Firms to Interview the Long-Term Unemployed

Estimates from the Current Population Survey show that the probability of finding a job declines the longer one is unemployed. Is this due to a loss of skills from being unemployed, employer discrimination against the long-term unemployed, or are there characteristics of workers in this segment of the workforce that lower their probability of finding a job? Studies that send out fictitious resumes find that employers do consider the length of unemployment in deciding whom to interview. Our recent work examines how such employer screening based on unemployment duration ultimately affects job-finding rates and long-term unemployment.

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Posted by Blog Author at 7:00 AM in Employment, Labor Economics, Macroecon, Unemployment | Permalink | Comments (0)

February 29, 2016

The “Cadillac Tax”: Driving Firms to Change Their Plans?



LSE_2016_cadillac-tax_dussault_460_art

Since the 1940s, employers that provide health insurance for their employees can deduct the cost as a business expense, but the government does not treat the value of that coverage as taxable income. This exclusion of employer-provided health insurance from taxable income—$248 billion in 2013, according to the Congressional Budget Office—is a huge subsidy for health spending. Many economists cite the distortionary effects of this tax subsidy as an important reason for why U.S. health care spending accounts for such a large share of the economy and why spending historically has grown so rapidly. In this blog post, we focus on a provision of the Affordable Care Act (ACA) that is intended to chip away at this tax subsidy, the colloquially labelled “Cadillac Tax” on the priciest employer-provided health insurance plans.

Continue reading "The “Cadillac Tax”: Driving Firms to Change Their Plans?" »

Posted by Blog Author at 7:00 AM in Employment, Labor Economics, Regional Analysis | Permalink | Comments (0)

January 29, 2016

Just Released: New Web Feature Provides Timely Data on the Job Market for Recent College Graduates



LSE_2016_college-labor-interactive_deitz_460_art

Many newly minted college graduates entering the labor market in the wake of the Great Recession have had a tough time finding good jobs. But just how difficult has it been, and are things getting better? And for which graduates? These questions can be difficult to answer because timely information on the employment prospects of college graduates has been hard to come by. To address this gap, today we are launching a new interactive web feature to provide data on a wide range of job market metrics for recent college graduates, including trends in unemployment rates, underemployment rates, and wages. We also provide data on the demand for college-educated workers, as well as differences in labor market outcomes across college majors. These data will be updated regularly and are available for download.

Continue reading "Just Released: New Web Feature Provides Timely Data on the Job Market for Recent College Graduates" »

Posted by Blog Author at 10:00 AM in Education, Labor Economics | Permalink | Comments (0)

January 11, 2016

Working as a Barista After College Is Not as Common as You Might Think



LSE_2016_working-as-a barista-after-college_able_460_art


The image of a newly minted college graduate working behind the counter of a hip coffee shop has become a hallmark of the plight of recent college graduates following the Great Recession. Recurring news stories about young college graduates stuck in low-skilled jobs make it easy to see why many college students may be worried about their futures. However, while there is some truth behind the popular image of the college-educated barista, this portrayal is really more myth than reality. Although many recent college graduates are “underemployed”—working in jobs that typically don’t require a degree—our research indicates that only a small fraction worked in a low-skilled service job in the years following the Great Recession. We find that underemployed recent college graduates held a wide range of jobs and, while most of these positions were clearly not equivalent to jobs that require a college education, some were actually fairly skilled and well paid. Further, our analysis suggests that many of those who started their careers in a low-skilled service job transitioned to a better job after gaining some experience in the labor market.

Continue reading "Working as a Barista After College Is Not as Common as You Might Think" »

Posted by Blog Author at 7:00 AM in Labor Economics, Wages | Permalink | Comments (0)
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