HOUSE_OVERSIGHT_025772.jpg
1.65 MB
Extraction Summary
6
People
5
Organizations
1
Locations
0
Events
2
Relationships
3
Quotes
Document Information
Type:
Economic research report
File Size:
1.65 MB
Summary
This document is page 10 of a Standard & Poor's economic research report dated August 5, 2014, titled 'How Increasing Income Inequality Is Dampening U.S. Economic Growth.' It features a chart showing net worth ratios relative to education levels and discusses academic research by Harvard and Brookings Institution scholars regarding the 'education gap' and the impact of income inequality on future generations. The document bears a 'HOUSE_OVERSIGHT' Bates stamp, indicating it was part of a document production for a congressional investigation, though the page content itself is purely macroeconomic analysis.
People (6)
| Name | Role | Context |
|---|---|---|
| Claudia Goldin | Harvard Professor |
Cited for research regarding the education gap and supply of educated workers.
|
| Lawrence Katz | Harvard Professor |
Cited alongside Claudia Goldin for research regarding the education gap.
|
| Michael Greenstone | Researcher |
Affiliated with Hamilton Project-Brookings; examined the effect of the income divide on upward mobility.
|
| Adam Looney | Researcher |
Affiliated with Hamilton Project-Brookings; examined the effect of the income divide on upward mobility.
|
| Jeremy Patashnik | Researcher |
Affiliated with Hamilton Project-Brookings; examined the effect of the income divide on upward mobility.
|
| Muxin Yu | Researcher |
Affiliated with Hamilton Project-Brookings; examined the effect of the income divide on upward mobility.
|
Organizations (5)
| Name | Type | Context |
|---|---|---|
| Standard & Poor's |
Publisher of the report/ratings direct.
|
|
| U.S. Census Bureau |
Source for the data used in Chart 3.
|
|
| Harvard |
University affiliation of professors Goldin and Katz.
|
|
| Hamilton Project-Brookings |
Affiliation of researchers Greenstone, Looney, Patashnik, and Yu.
|
|
| House Oversight Committee |
Indicated by the Bates stamp 'HOUSE_OVERSIGHT'.
|
Locations (1)
| Location | Context |
|---|---|
|
Subject of the economic research.
|
Relationships (2)
Cited together as Harvard professors arguing a specific economic point.
Listed together as researchers for Hamilton Project-Brookings.
Key Quotes (3)
"Based on this data, it would appear the problem isn't that technology has leaped ahead--rather, the supply of educated workers has stalled."Source
HOUSE_OVERSIGHT_025772.jpg
Quote #1
"They found that investments in education and skills, traits that increasingly decide job market success, are becoming more stratified by family income, threatening the earning potential of the youngest Americans."Source
HOUSE_OVERSIGHT_025772.jpg
Quote #2
"Indeed, researchers have found that the gap in test results of children from families at the 90th income percentile versus children of families at the 10th percentile has grown by about 40% over"Source
HOUSE_OVERSIGHT_025772.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,388 characters)
Economic Research: How Increasing Income Inequality Is Dampening U.S. Economic Growth, And Possible Ways To Change The Tide
Chart 3
Ratios Of Median Net Worth Relative To Median Net Worth Of A High School Graduate
Ratios Of Median Net Worth Relative To Median Net Worth Of A High School Graduate
— No high school diploma
— Some college, no degree
----- Associate degree
----- Bachelor's degree
— — Graduate or professional degree
— Some college, no degree
----- Associate degree
----- Bachelor's degree
— — Graduate or professional degree
(Median net worth relative to that of a high school graduate)
7
6
5
4
3
2
1
0
1998 2000 2002 2004 2005 2009 2010
7
6
5
4
3
2
1
0
1998 2000 2002 2004 2005 2009 2010
Note: High school graduate net worth = 1. Source: U.S. Census Bureau, Survey of Income and Program Participation 2004 and 2008 panels.
© Standard & Poor's 2014.
Harvard professors Claudia Goldin and Lawrence Katz argue that, rather than technology picking up speed, the reduced supply of educated workers is the key factor explaining the education gap, finding that between 1980 and 2005 the pace of the increase in educational attainment slowed dramatically. In 1980, Americans age 30 years or older had 4.7 years more schooling on average than Americans in 1930--but Americans in 2005 had only 0.8 years more schooling on average than Americans in 1980 (24). Based on this data, it would appear the problem isn't that technology has leaped ahead--rather, the supply of educated workers has stalled.
The impact of income inequality on future generations of qualified workers is particularly disconcerting. Michael Greenstone, Adam Looney, Jeremy Patashnik, and Muxin Yu (Hamilton Project-Brookings) examined the effect that the income divide in the U.S. could have on the future upward mobility of the country's children (25). They found that investments in education and skills, traits that increasingly decide job market success, are becoming more stratified by family income, threatening the earning potential of the youngest Americans.
These researchers note that, although cognitive tests of ability show little difference between children of high- and low-income parents in the first years of their lives, "large and persistent" differences start to appear before kindergarten and widen throughout high school (26). Indeed, researchers have found that the gap in test results of children from families at the 90th income percentile versus children of families at the 10th percentile has grown by about 40% over
WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 5, 2014 10
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1351366 | 302136118
HOUSE_OVERSIGHT_025772
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