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Closing the 'Degree Gap'

March 7, 2007

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Reports about flagging U.S. competitiveness are about as common as college presidents quoting The World Is Flat or politicians worrying about jobs being transported to China or India.

But a new study being released aims to do something different: It is trying to quantify the number of degrees the United States needs to keep up with international competitors and to spur the development of plans to educate millions more students between now and 2025. "Hitting Home: Quality, Cost and Access Challenges Confronting Higher Education Today" will be released today by the Making Opportunity Affordable project.

The report -- based on a series of research projects -- compares the production of degrees in the United States with those of the country's top international competitors, who already are showing signs of overtaking the U.S. in educating their citizens. Based on the percentage of citizens with college degrees in those countries, the report estimates that the United States needs to educate an additional 15.6 million people (with either bachelor's or associate degrees) by 2025. That would be another 781,000 degrees a year on top of current levels, or a 37 percent increase over current production.

Such an increase would bring to 55 percent the proportion of the adult population with a college degree -- the percentage projected for Canada, Japan and South Korea by 2025. (Those are the three countries identified as the top performing in college attainment.)

If that isn't enough of a challenge, the report also raises the issue of the racial and ethnic make-up of those potential new graduates, and suggests that the United States will not be successful internationally if it continues with current patterns in which black and Latino students lag in college attendance and graduation. With a simultaneous push to close that gap, the number of new degrees needed would rise to more than 18 million.

Citing data from a number of sources, the report outlines reasons Americans should be concerned about losing their historic edge in higher education:

  • Seven nations already lead the United States in degree attainment (Belgium, Canada, Ireland, Japan, Norway, South Korea and Sweden).
  • More than half of Japanese and Canadian 25- to 34-year olds have a bachelor's or associate degree, compared to less than 4 in 10 Americans.
  • Although the United States ranks among the top 5 countries in the proportion of young people who enroll in college, it ranks 16th in the proportion who finish college.
  • American colleges award about 18 degrees annually for every 100 full-time students enrolled, compared to about 25 degrees for countries such as Britain, Japan and Portugal.

The report also analyzes state performance at meeting the goal of having 55 percent of the adult population with a college degree, and finds the states lacking. No state meets that goal today, and only eight states and the District of Columbia are on track to hit that percentage by 2025: (in order of proximity to the goal today): Massachusetts, Connecticut, Colorado, New Jersey, Minnesota, New Hampshire, Vermont and Maryland. While all of those states are above 40 percent today, seven states are below 30 percent (from the bottom): West Virginia, Arkansas, Louisiana, Kentucky, Nevada, Mississippi and Tennessee.

Travis Reindl, author of the report and leader of the Making College Affordable project, said that the state projections are based both on percentage of residents educated and the states' ability to attract educated people to move from other states. "Every state, whether projecting a gap or not, faces a real challenge," Reindl said, especially when factoring in the need to bring black and Latino degree holders up to comparable levels with other groups.

Some states may have "natural advantages" today because they are perceived as desirable places to live, Reindl said. But he added that states without such advantages can improve now in part because technology makes everyone connected and businesses are more willing than in the past to relocate. "You can situate a business anywhere, and a lot of what business is looking for is a ready-to-go talent pool," he said.

In the months ahead, the project plans to issue a series of additional reports, covering topics such as college costs, and also to work with selected states on creating models for reaching the ambitious enrollment targets.

The cost report "is really going to dig into the data to unpack what has driven up the per-student cost," Reindl said. He said that the report would surprise people. "While you hear all this talk that our faculty are so expensive, instruction isn't the big factor and has gone down in most sectors," he said. Among the categories going up: administrative employee costs, expenses associated with competing with other colleges, and student services.

The report makes clear that the project will seek significant changes from colleges. The report quotes Charles Miller, chair of the Education Secretary's Commission on the Future of Higher Education, as talking about the lack of a true bottom line in higher education. And it offers praise for state systems that have adopted policies to weed out degree programs attracting few students or that are duplicative.

But the report also talks about the need for significant new resources, even if colleges can find ways to achieve significant savings.

"We can't just throw money at this problem, and the money we'd need is not going to materialize," Reindl said. "But you have to have sustained public investment in higher education and you have to have better cost effectiveness." Maryland is a good example of how these efforts can be combined, Reindl said, as the public higher education system there has both achieved significant cost savings and attracted new levels of public support.

The report calls on states and higher education systems to set goals and metrics to measure quality, cost issues and access -- and future efforts of the project will provide more details on how to do this, as will the model programs being set up in various states.

Multiple strategies will be needed to meet these goals, the report says. It calls for:

  • Strengthening collaboration among institutions, with better articulation and transfer agreements.
  • Focusing resources on "core academic priorities." The report praises efforts in Ohio, Virginia and Illinois to identify programs that may merit elimination or retooling.
  • Streamlining student transitions into higher education. The report notes such programs as the California State University System's work to give 11th graders a sense of how prepared they are for college-level work.
  • Promoting timely degree completion through providing colleges with financial incentives if their students finish on time, and by helping students start college with credit for previously done college-level work.
  • Redesigning academic programs to improve student results while cutting costs. The report praises the efforts of the National Center for Academic Transformation to consider new models for faculty-student interaction (using professors more as tutors than as lecturers while adding uses of technology).

The Making Opportunity Affordable project is being managed by Jobs for the Future, will feature research prepared by the National Center for Higher Education Management Systems, and has financial support from the Lumina Foundation for Education.

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Comments on Closing the 'Degree Gap'

  • Plumbers and CPAs
  • Posted by James on September 10, 2007 at 11:55am EDT
  • Must respond to Max's comment.

    Plumber finishes cleaning out a kitchen trap and hands the homeowner a bill. "Good Lord," says the homeowner, "that's outrageous! What's your hourly rate?"

    "$200 an hour," comes the answer.

    "I'm a CPA and I only charge $100," fumes the homeowner.

    "Oh, yes, that's what I charged too when I was a CPA," responds the plumber casually.

  • Posted by Pat , student on November 10, 2007 at 8:30pm EST
  • Economist Dean Baker describes the competition for lowly skilled labor in America. While lowly educated workers must compete with an increasingly globalized worforce, white collar workers are insulated from similar free market forces. ( see http://ConservativeNannyState.org )

  • Apples and Oranges
  • Posted by Scrawed on March 7, 2007 at 8:00am EST
  • The emphasis on student numbers and graduation numbers, without any apparent interest in quality or student outcomes, is disturbing at best. It sounds an awful lot like a pitch to meet new sales targets or "printing money to make money."

    The nations that the US is compared to in degree attainment are not particularly comparable with the US. All seven nations have significantly lower populations than the US. I believe you will find Japan has the largest population of these countries at about 130 million, and that Norway has the smallest population at about 4 million. Both are a far cry from 300 million.

    Many of the nations listed are arguably predominantly mono-ethnic as opposed to "multiethnic" (Ireland, Norway, Japan and South Korea). Belgium is perhaps less "mono-ethnic." Sweden and Canada perhaps face the greatest multiethnic challenges of the seven nations listed. Conversely, the US has always been a multi-ethnic society with substantial populations. These have been, and continue to be, challenging to assimilate - and none of these countries faces comparable challenges.

    All but one of these nations (the exception being Canada) either is significantly limited in land mass or has a disproportionate concentration of population in a given area. This allows for some efficiencies in providing educational services which other, larger countries simply cannot manage without significant duplication of effort and investment.

    As for using these countries as models, some damning things have been said about Japanese higher education and its comparative lack of rigor (especially when compared with Japanese grade and high school institutions). I believe both Norway and Sweden tend to promote earlier specialization and "tracking" starting with their equivalents of high school ('Gymnas'), which include vocational education options that appear to be meaningful.

    Instead of "keeping up with the Yamadas" or the "Pedersons" or the "Ohs" by upping enrollments and passing out more diplomas, perhaps what the US needs to concentrate on is the establishment, development, and maintenance of community as a means of promoting the substance, efficacy, and desirability of higher education. I am not at all convinced that trying to fill slots in businesses that can and will locate anywhere is nearly as valuable.

  • Posted by patent of college student on March 7, 2007 at 8:25am EST
  • The solution is obvious and known to all. Everyone knows the assumption that tenured professors are qualified to teach and grade is false. Colleges need to take control of the teaching process. They need to train teachers, supervise the teaching process and make corrections including changing unfair grades. After all, in the classroom, college professors are nothing more than salesmen for education and no well run company would consider sending out its sales force without training and supervision. The country club model for tenured professors may work for liberal arts where the goals and objectives are fuzzy but as university, education becomes more scientific and vocational; students need specific skills, and universities need decent graduation rates. The benign neglect model of management preferred by faculty (see Harvard) will not produce the required results.

  • Lifting the Veil, anyone?
  • Posted by Glen S. McGhee at FHEAP on March 7, 2007 at 9:01am EST
  • Scrawed's penetrating insights into the limitations of the study are deeply appreciated.

    But someone has to lift the veil a little higher and point out, as UPenn prof Ivar Berg has, that "colleges are aging vats" -- upon which the West (and the East) have become more and more dependent as a jobs-transition mechanism. This lack of diversity is troubling.

    The consequence of this kind of reliance is rampant credential inflation, smaller families, massive loan burdens, and lost years sitting in a vat. And rather than see this as a good thing, its sanity needs to be questioned.

  • Are you kidding me?
  • Posted by Regine , Doc student on March 7, 2007 at 9:22am EST
  • "Patent of college student," do you REALLY think that the reason we have the graduation rates we do is because professors won't change (allegedly) unfair grades? How about the fact that huge numbers of students are working their way through school? Or that larger numbers than ever count as "nontraditional" students - many of whom have not only jobs but families to support?

    Furthermore, what the heck is a "country club model"? Are you talking about tenure itself? Or "goals and objectives"? I'm at a loss here.

    One thing I'm not confused about, however, is the idea that NO school can change as quickly as the business world you seem to be so fond of, and most businesses will tell you that they have to handle the "training" aspect of things when a college grad gets there anyway, which seems pretty reasonable - how is a university supposed to prepare a student for the exact company he or she might end up at?

    And finally, when was the last time YOU heard of a salesman who outlined the finer points of meiosis for a med school hopeful yet again? Or who wrote nine recommendation letters, tailoring each one for the program it was headed for? Or who offered to mentor a 19-year-old so many years away from a Ph.D. that it seemed ridiculous - and actually saw that 19-year-old through? (*I* was the kid in question.) When was the last time you heard of a salesman whose product had the potential not only to give some direction to a young person's life but also to inspire the curiosity required to GO in that direction? Maybe that salesman is out there. But I haven't met him.

  • Posted by William Patrick Leonard on March 7, 2007 at 10:31am EST
  • Concentrating on numbers misses the point—what our students need and want. Our focus on raw numbers, to lead the world, ignores the normal distribution of abilities, circumstances and dispositions among our students. Yes, all of our young and not so young will benefit from education beyond high school. Not all, nor will the society, benefit from a one size fits all approach to post secondary education.

  • Misleading Statistics?
  • Posted by Paul on March 7, 2007 at 1:31pm EST
  • I don't understand the sentence:
    American colleges award about 18 degrees annually for every 100 full-time students enrolled, compared to about 25 degrees for countries such as Britain, Japan and Portugal.

    This statement can be interpreted in several ways. For example, Britain has a 3 year college program where the US hs a 4 year program. Thus, we would expect that, as an upper bound in steady state, if all students enrolled stayed four years and graduated, the maximum number graduated would be 25%/year in the US and 33% in England. Thus in the US we get 18/25 or 72% of the manximum compared to 25/33.3 or 75% of the maximum in England. Not as bad.

    Of course, the numbers may be based on different assumptions of what went into the numbes, in which case the foregoing simplistic analysis may not apply

  • Demand for increasing grad rates
  • Posted by Just Wondering! on March 7, 2007 at 2:06pm EST
  • With the push for higher education to increase graduation rates for incoming students, has anyone thought about how that will impact our economy??? Just playing devil's advocate. If everyone has an Associate's degree or Bachelor's degree as a minimum entry level requirement for the future jobs doesn't it stand to reason that the wage level for these positions should also increase? Otherwise, why pay out or go into debt for thousands of dollars for an education that may not exceed the return on investment or even help secure a job position? There are many people wondering around with degrees, school debt, and no jobs in their fields.
    In addition, many companies in the U.S. are already outsourcing jobs to other countries where labor is cheaper. Others say they outsource b/c the U.S. does not have enough educated workers and can find them in other countries and a lower wage cost. So if the push is to educate all workers in the U.S., wages should increase, increased wages cut into profits, companies may start outsourcing even more. Now that does not mean that every job would be outsourced but the potential to push businesses in this direction is there. Next comes the realization that if we want to keep jobs in the U.S. for our citizens, workers are forced to work for lower wages b/c of the threat of outsourcing. Are workers going to held hostage by buisnesses??? Furthermore, not every job position requires an education. High School education use to be a minimum standard. Now the AS degree is fast becoming that standard soon to be followed by the Bachelor's and so on. There is no dispute that there are many benefits to a country if its citizenry is educated and that with the advancement of technology, some education is necessary. But how much education,how many people, and at what cost? If the issue is urgent, then the government may need to ante up more money to support educating its citizens - maybe mandatory education K-14 or K-16???? This issue has many intersecting ramifications good and bad - a lot to think about!

  • Posted by Max on March 7, 2007 at 4:00pm EST
  • I remeber a number of years ago that engineering professors assuring me that the U.S. economy was doomed, doomed, doomed because the Soviets were producting three times as many engineers as were being produced in the U.S.

    The fact that most of the Soviet engineers had make work jobs seemed to be of no consequence. The idea that excess engineers could possibly be a waste of soceities resources was just to horrible to contemplate.

    In my town it is a heck of lot easier to find a good CPA than a good plumber. I think the CPAs work cheaper as well.

    Is there any reason to think that we need 55 percent of the population to be credentialed? Perhaps this is just a case of supply creating its demand.

  • Global HE Race
  • Posted by John Douglass at UC Berkeley on March 7, 2007 at 6:55pm EST
  • This is getting to be old news regurgitated. See http://www.insidehighered.com/news/2006/06/12/wane.

    Access and graduation numbers don't tell the whole story - international comparisons have problems. But they do indicate the trajectory of international competitors and the waning of the US HE advantage.

    The important questions include: what does it mean for socioeconomic mobility and economic competitiveness to have largely stagnant HE access and grad rate; what are the causes; and what can be done about it including the relative role of public versus private HE, and the role of insitutions, state governments, and the feds?

  • Posted by SHA on March 7, 2007 at 6:55pm EST
  • I agree especially with Scrawed's first paragraph. My fear is that insitutions will use this information to push more students through the system without regard to whether the students are getting a quality education. In my experience, the "More, Better, Faster" model results in More and Faster, while the Better falls by the wayside.

    But there's a bigger question here for me, and forgive my ignorance when I ask, Why does it matter that the U.S. doesn't have as many degreed citizens? Why is that a bad thing?

  • Posted by Dan O'Reilly on March 9, 2007 at 4:26am EST
  • I was told that only 20% of the jobs in America require a 4year degree or higher. This rate has remained the same for the last 50 years. In that time the percentage of unskilled jobs has gone way down and the percentage of skilled jobs has gone way up. Preparation for these skilled jobs occurs mainly in community colleges, career schools (i.e. "Become a dental assistant in x months!"), and apprentice programs. Let's stop unrealistically trying to get everyone a B.S. or B.A. degree.

  • Two Problems...
  • Posted by Rob on March 9, 2007 at 11:25am EST
  • There are two fundamental problems with this issue of "the Degree Gap."

    The first is that degrees from other nations often are not equivalent to those in America. India and China have an interest in churning out as many degree holders as possible, and often hand out so-called "bachelor's" degrees in only two years. This problem is so pervasive that whenever I see a resume from a job applicant from India or China, I always knock their education down a level - if the applicant has a "Master's" degree, I consider it a bachelors, if they have a bachelor's, I consider it an Associates.

    The second problem is that America is actively digging its own grave in education, especially in the science and tech fields, by importing so many people from abroad to fill jobs or enroll in our universities. I find it extremely ironic that, as we complain about not having enough Americans going into these fields, our universities continue to enroll huge numbers of foreigners into our science and technology programs. If American universities continue to give favoritism to foreigners in these fields, then it should come as no suprise that America develops a "degree gap."