xiii
Contents
1 Introduction: Opportunity in America—Setting the Stage... 1 Henry Braun and Irwin Kirsch
Part I Understanding Where We Are Today
2 Segregation, Race, and the Social Worlds of Rich and Poor ... 13 Douglas S. Massey and Jonathan Tannen
3 Federalism and Inequality in Education:
What Can History Tell Us? ... 35 Carl Kaestle
4 The Changing Distribution of Educational
Opportunities: 1993–2012 ... 97 Bruce Baker , Danielle Farrie , and David G. Sciarra
5 The Dynamics of Opportunity in America:
A Working Framework ... 137 Henry Braun
Part II The Labor Market
6 Wages in the United States: Trends, Explanations,
and Solutions ... 167 Jared Bernstein
7 The Widening Socioeconomic Divergence
in the U.S. Labor Market ... 197 Ishwar Khatiwada and Andrew M. Sum
xiv
Part III Education and Opportunity
8 Gates, Gaps, and Intergenerational Mobility:
The Importance of an Even Start ... 255 Timothy M. (Tim) Smeeding
9 Quality and Equality in American Education:
Systemic Problems, Systemic Solutions ... 297 Jennifer A. O’Day and Marshall S. Smith
10 Restoring Opportunity by Expanding Apprenticeship ... 359 Robert I. Lerman
11 Improving Opportunity Through Better Human
Capital Investments for the Labor Market ... 387 Harry J. Holzer
Part IV Politics and the Road Ahead
12 Political and Policy Responses to Problems of Inequality
and Opportunity: Past, Present, and Future ... 415 Leslie McCall
13 How Will We Know? The Case for Opportunity Indicators ... 443 Richard V. Reeves
Part V Seeking Inclusive Prosperity
14 Epilogue: Can Capitalists Reform Themselves? ... 467 Chrystia Freeland
Appendix: Members of the Opportunity
in America Advisory Panel... ... 475
Index... ... 477
Contents
xv
Editors
Irwin Kirsch is Tyler Chair in Large-Scale Assessment and Director of the Center for Global Assessment at Educational Testing Service (ETS). He also serves as Project Director of ETS’s Opportunity in America initiative.
Henry Braun is Boisi Professor of Education and Public Policy in the Lynch School of Education and Director of the Center for the Study of Testing, Evaluation, and Education Policy at Boston College. He also serves as Project Co-Director of ETS’s Opportunity in America initiative.
Contributors
Bruce Baker is Professor at the Graduate School of Education at Rutgers University and maintains blogs on school fi nance and educational policy.
Jared Bernstein is a Senior Fellow at the Center on Budget and Policy Priorities.
He previously served as Chief Economist and Economic Adviser to Vice President Joe Biden.
Danielle Farrie is Research Director of the Education Law Center in Newark, New Jersey.
Chrystia Freeland is the Canadian Minister of International Trade and Member of Parliament for University-Rosedale, Toronto, author of Plutocrats: The Rise of the New Global Super-rich and the Fall of Everyone Else , and journalist.
About the Editors and Contributors
xvi
Harry J. Holzer is Professor at the McCourt School of Public Policy at Georgetown University and is an Institute Fellow at the American Institutes for Research. He previously served as Chief Economist at the U.S. Department of Labor.
Carl Kaestle is University Professor of Education, History, and Public Policy emeritus at Brown University.
Ishwar Khatiwada is a Labor Economist at the Center for Labor Markets and Policy at Drexel University.
Robert I. Lerman is an Institute Fellow at the Urban Institute, Emeritus Professor of Economics at American University, and a Research Fellow at IZA in Bonn, Germany. He is also the Founder of the American Institute for Innovative Apprenticeship.
Douglas S. Massey is the Henry G. Bryant Professor of Sociology and Public Affairs at Princeton University’s Woodrow Wilson School of Public and International Affairs.
Leslie McCall is a Professor in the Department of Sociology and Faculty Fellow at the Institute for Policy Research at Northwestern University.
Jennifer A. O’Day is an Institute Fellow of the American Institutes for Research and is the Founder and Chair of the California Collaborative on District Reform.
Richard V. Reeves is a Senior Fellow in Economic Studies, Co-Director of the Center on Children and Families, and Editor-in-Chief of the Social Mobility Memos blog at the Brookings Institution.
David G. Sciarra is Executive Director of the Education Law Center in Newark, New Jersey.
Timothy M. (Tim) Smeeding is the Arts and Sciences Distinguished Professor of Public Affairs and Economics at the University of Wisconsin-Madison. He was pre- viously Director of the Institute for Research on Poverty at Wisconsin-Madison.
Marshall S. Smith is a Senior Scholar at the Carnegie Foundation for the Advancement of Teaching, a former Dean and Professor at Stanford, and a former Under Secretary and Acting Deputy Secretary at the U.S. Department of Education in the Clinton administration. He is a Fellow of the American Academy of Arts and Sciences and the National Academy of Education.
About the Editors and Contributors
xvii
Andrew M. Sum is Professor Emeritus of Economics at Northeastern University in Boston. He was previously the Director of the Center for Labor Market Studies.
Jonathan Tannen is a Doctoral Candidate in the Urban and Population clusters of the Woodrow Wilson School and the Offi ce of Population Research at Princeton University.
About the Editors and Contributors
xix
List of Figures
Fig. 2.1 Black-White residential dissimilarity and Black
and White poverty rates in metropolitan areas ... 15 Fig. 2.2 Segregation trends in the most and least segregated
metropolitan areas ... 17 Fig. 2.3 Percentage of households earning less than $30,000
in neighborhoods of metropolitan areas (by various
race/income groups) ... 19 Fig. 2.4 Percentage of households earning more than $120,000
in neighborhoods of metropolitan areas (by various
race/income groups) ... 21 Fig. 2.5 Percentage of individuals 25 and over with a college
degree in neighborhoods of metropolitan areas
(by various race/income groups) ... 22 Fig. 2.6 Potential home wealth in neighborhoods of metropolitan
areas (by various race/income groups) ... 23 Fig. 2.7 Relationship between racial segregation by neighborhood
to racial segregation by school district across states ... 24 Fig. 2.8 Relationship between racial segregation and gap
in percentage affl uent between poor Black and affl uent
White neighborhoods ... 25 Fig. 2.9 Relationship between racial segregation and gap
in potential home wealth between poor Black
and affl uent White neighborhoods ... 26 Fig. 2.10 Percentage of households earning less than $30,000 in
neighborhoods of hypersegregated metropolitan areas
(by various race/income groups) ... 27 Fig. 2.11 Percentage of households earning more than $120,000 in
neighborhoods of hypersegregated metropolitan areas
(by various race/income groups) ... 28
xx
Fig. 2.12 Percentage of individuals 25 and over with a college degree in neighborhoods of hypersegregated metropolitan
areas (by various race/income groups) ... 29
Fig. 2.13 Potential home wealth in neighborhoods of hypersegregated metropolitan areas (by various race/income groups) ... 30
Fig. 4.1 Conceptual map of fi scal inputs & real resources ... 108
Fig. 4.2 Input price adjusted revenue and spending ... 114
Fig. 4.3 Predicted state and local revenues over time by state ... 115
Fig. 4.4 Relationship between effort and revenue ... 117
Fig. 4.5 Spending levels and staffi ng levels 2011–2012 ... 124
Fig. 4.6 Relating total staffi ng and class size ... 125
Fig. 4.7 Spending levels and competitive wages ... 126
Fig. 4.8 Spending fairness and staffi ng fairness 2011–2012 ... 126
Fig. 4.9 Change in class size for 1 unit change in relative spending and relative poverty ... 128
Fig. 4.10 Change in salary competitiveness for 1 unit change in relative spending ... 128
Fig. 5.1 Distribution of real wage and salary earnings for full-year, full-time males workers aged 18–64 as compared to 1961–2000 ... 139
Fig. 5.2 Distribution of real wage and salary earnings for full-year, full-time male workers aged 16 and over, as compared to 2000 ... 140
Fig. 5.3 Cumulative change in real annual wages, by wage group, 1979–2010 ... 141
Fig. 5.4 Changes in real wage levels of full-time U.S. workers by sex and education, 1963–2012 ... 142
Fig. 5.5 Problem-solving profi ciency among younger adults (age 16–24) and older adults (age 55–65) (OECD 2013) ... 143
Fig. 5.6 Underutilization rates among U.S. workers (16 and over) by educational attainment, January 2012–August 2013 averages (in %) ... 154
Fig. 6.1 Real hourly wage trends by decile, 1979–2013 ... 170
Fig. 6.2 Real hourly wage trends: men ... 171
Fig. 6.3 Real hourly wage trends: women ... 171
Fig. 6.4 Changes in real wage levels of full-time U.S. workers by sex and education, 1963–2012 ... 173
Fig. 6.5 Real annual earnings by wage percentile, 1979–2012 ... 174
Fig. 6.6 First principal component: Five series, nominal growth ... 177
Fig. 6.7 Compensation as share of national income, 1959–2013 ... 179
Fig. 6.8 Percent of time unemployment has been “Too High” ... 185
Fig. 6.9 Change in real wages by wage level given 30 % decline in unemployment rate ... 185
List of Figures
xxi
Fig. 6.10 Trade defi cit/GDP and manufacturing compensation,
1949–2013 ... 186 Fig. 6.11 Growth of the top 1 % income advantage
and the college wage premium, 1979–2011 ... 188 Fig. 7.1 Measuring the unemployed, underemployed, the hidden
unemployed, and the underutilized labor force ... 199 Fig. 7.2 Unemployment rates among workers (16 and over)
by educational attainment, 2013–2014 averages (in %) ... 202 Fig. 7.3 Unemployment rates among workers (16 and over)
by household income, 2013–2014 averages (in %) ... 203 Fig. 7.4 Unemployment rates among workers (16 and over)
by educational attainment and household income,
2013–2014 averages (in %) ... 204 Fig. 7.5 Underemployment rates among employed workers
(16 and over) in 2013–2014 by educational attainment,
annual averages (in %) ... 206 Fig. 7.6 Underemployment rates among employed workers
(16 and over) in 2013–2014 by household income,
annual averages (in %) ... 207 Fig. 7.7 Underemployment rates among workers (16 and over)
by educational attainment and household income,
2013–2014 annual averages (in %) ... 208 Fig. 7.8 Hidden unemployment rates among workers
(16 and over) in 2013–2014 by educational attainment,
annual averages (in %) ... 210 Fig. 7.9 Hidden unemployment rates among the adjusted labor
force (16 and over) by household income, 2013–2014
annual averages (in %) ... 211 Fig. 7.10 Hidden unemployment rates among workers (16 and over)
by educational attainment and household income,
2013–2014, annual averages (in %) ... 211 Fig. 7.11 Numbers of underutilized workers (16 and over), all
and by type of labor market problem, 2013–2014
averages (in millions) ... 212 Fig. 7.12 Labor force underutilization rates among workers
(16 and over) by educational attainment, 2013–2014
annual averages (in %) ... 213 Fig. 7.13 Labor force underutilization rates among workers
(16 and over) by household income, 2013–2014 annual
averages (in %) ... 215 Fig. 7.14 Labor underutilization rates among workers (16 and over)
by educational attainment and household income,
2013–2014 annual averages (in %) ... 215
List of Figures
xxii
Fig. 7.15 Comparisons of the labor underutilization rates of low-income, high school dropouts and affl uent adults with a master’s degree or higher by race-ethnic
group, 2013–2014 annual averages (in %) ... 217 Fig. 7.16 Trends in the employment/population ratios of teens
and young adults (20–24, 25–29) in 1999–2000
and 2013–2014 (in %) ... 220 Fig. 7.17 Percentage point increases in labor underutilization
rates among selected educational and household income
groups of workers, 1999–2000 to 2013–2014 ... 223 Fig. 7.18 Poverty rates of persons 16 and older in 2012–2013
by labor underutilization status in March 2013–
March 2014 ... 227 Fig. 7.19 Poverty rates of underutilized U.S. workers
(16 and over) by educational attainment, March 2013–
March 2014 (in %) ... 227 Fig. 7.20 Poverty rates of workers (16 and over) by underutilized
status and educational attainment, March 2013 and March
2014 (in %) ... 228 Fig. 7.21 Poverty/near poverty rates of workers (16 and over)
in 2012–2013 by labor underutilization status,
March 2013–March 2014 ... 230 Fig. 7.22 Poverty/near poverty rates of underutilized U.S. workers
(16 and over) by educational attainment, March 2013–
March 2014 (in %) ... 230 Fig. 7.23 Poverty/near-poverty rates of selected groups of workers
(16 and over) by underutilized status and educational
attainment, March 2013–March 2014 (in %) ... 231 Fig. 7.24 Low-income rates of workers (16 and over)
in 2012–2013 by labor underutilization status,
March 2013–March 2014 ... 232 Fig. 7.25 Low-income rates of underutilized workers
(16 and over) by educational attainment,
March 2013–March 2014 (in %) ... 233 Fig. 7.26 Low-income rates of selected educational attainment/labor
underutilized groups of workers (16 and over),
March 2013–March 2014 (in %) ... 234 Fig. 8.1 A model of intergenerational transmission
of advantage by life stage ... 260 Fig. 8.2 After-tax and transfer disposable income for
households with children: mean income in bottom,
middle, and top quintiles, 1979–2010 ... 269 Fig. 8.3 Changes in real wage levels of full-time U.S. workers
by sex and education, 1963–2012 ... 271
List of Figures
xxiii
Fig. 8.4 Never-married mothers by education attainment ... 277
Fig. 8.5 Unmarried mothers by mothers’ education ... 278
Fig. 8.6 Racial and ethnic cognitive disparities at ages 9 and 24 months ... 279
Fig. 8A.1 Disparities in cognitive and socio-behavioral outcomes by income level at 9 and 24 months ... 286
Fig. 8A.2 Disparities in cognitive and socio-behavioral outcomes by education of mother ... 287
Fig. 12.1 American concerns about inequality, 1987–2012 ... 422
Fig. 12.2 American perceptions of occupational pay and pay inequality ... 423
Fig. 12.3 American and international perceptions of economic opportunity ... 424
Fig. 12.4 Changes in perceptions of economic opportunity, 1987–2012 ... 425
Fig. 12.5 Changes in perceptions of economic opportunity, 2001–2012 ... 426
Fig. 12.6 Adjusted trend in index of concerns about inequality (scaled 0–1) ... 427
Fig. 13.1 Absolute mobility: share of Americans who exceed their parents’ family income ... 447
Fig. 13.2 Relative intergenerational income mobility ... 448
Fig. 13.3 Social mobility matrix: college graduate ... 449
Fig. 13.4 Social mobility matrix: less than high school education ... 449
Fig. 13.5 Social mobility matrix: Black Americans ... 450
Fig. 13.6 Social mobility matrix: White Americans ... 451
Fig. 13.7 Social mobility matrix: children of never-married mothers ... 451
Fig. 13.8 Social mobility matrix: children of continuously married mothers ... 452
List of Figures
xxv
List of Tables
Table 3.1 Trends in desegregation, 1950–2000: percentage of Black
students in 90–100 % non-White schools, by region ... 48
Table 3.2 Funding of special education costs, percent shares, 1983 through 2010 ... 59
Table 3.3 Main NAEP reading scores, 1992–2013: White/Black and White/Hispanic gaps ... 79
Table 3.4 Main NAEP mathematics scores, 1992–2013: White/Black and White/Hispanic gaps ... 79
Table 3.5 Federal, state, and local share: public elementary and secondary school budgets ... 88
Table 4.1 Numbers of states where funding fairness ratio has improved ... 117
Table 4.2 Spending fairness indices for select years ... 119
Table 4.3 Summary of changes in wage competitiveness ... 120
Table 4.4 Teacher/nonteacher wage ratios for select years ... 121
Table 4.5 Summary of staffi ng level changes over time ... 122
Table 4.6 Predicted staffi ng ratios for select years ... 123
Table 4.7 Fixed effects model of pupil-to-teacher ratio fairness ... 127
Table 4A.1 Data sources, years, and measures ... 131
Table 4A.2 Summary data by state ... 132
Table 5.1 Percent of 24- to 28-year-old adults in the U.S. in 2008 without a high school diploma or GED by ASVAB test score quintile and family’s income in their teenaged years in 1997 ... 143
Table 5.2 Comparisons of the unemployment rates of U.S. adults 16 and older by educational attainment, 2000 and 2012–2013 (in %) ... 155
Table 5.3 Wages for full-time employment by educational attainment, 1979–2009 ... 156
xxvi
Table 6.1 Real annual earnings, 1947–2012 ... 175 Table 7.1 Comparisons of the unemployment rates of adults
16 and older by educational attainment, 1999–2000
and 2013–2014 (in %) ... 205 Table 7.2 Comparisons of the underemployment rates of employed
adults by household income and educational attainment
in 1999–2000 and 2013–2014 (in %) ... 208 Table 7.3 Labor force underutilization rates of workers 16
and older by educational attainment, 1999–2000
and 2013–2014 (in %) ... 214 Table 7.4 Comparisons of the labor underutilization rates
of adults 16 and older by educational attainment
and household income groups, by gender and race-ethnic
group, 2013–2014 annual averages (in %) ... 216 Table 7.5 Predicated probabilities for selected individuals
16 and older of being an underutilized member of the
nation’s labor force in 2013–2014 (in %) ... 218 Table 7.6 Employment-population ratio of 16- to 24-year-old
by school enrollment status, 1999–2000
and 2013–2014 averages ... 221 Table 7.7 Predicted probabilities of selected young adult
labor force participants being underutilized
in 2013–2014 (in %) ... 222 Table 7.8 Labor force underutilization rates of U.S. workers
(16 and older) in selected educational attainment and household income groups in 1999–2000
and 2013–2014 (in %) ... 223 Table 7.9 The annual money incomes equivalent to the poverty
line, the poverty/near poverty line, and the low-income
threshold for selected individuals and families, 2013 ... 225 Table 7.10 Poverty rates of persons 16 and older in 2012–2013
by labor force underutilization status in March 2013–
March 2014, total and by gender and educational
attainment level (2-year averages) ... 226 Table 7.11 Poverty/near poverty rates of 16 and older persons
in 2012–2013 by labor force underutilization status in March 2013 and March 2014, total and by gender
and educational attainment level ... 229 Table 7.12 Low-income rates of 16 and older persons in 2012–2013
by labor force underutilization status in March 2013 and March 2014, total and by gender and educational
attainment level ... 235
List of Tables
xxvii
Table 7A.1 Labor force underutilization rates of persons 16 and older by household income level, educational
attainment: 2013–2014 averages (in %) ... 236 Table 7A.2 Comparisons of the labor underutilization rates
of workers lacking a high school diploma with those holding a master’s or higher degree, all and by gender
and race-ethnic group, 2013–2014 averages (in %) ... 237 Table 7A.3 Comparisons of the labor underutilization rates of workers
from low- income families (under $20,000) with those from the most affl uent ($150,000 and over), all and by
gender and race-ethnic group, 2013–2014 (in %) ... 238 Table 7A.4 Comparisons of the labor underutilization rates
of workers from low- income families lacking a high school diploma to workers from the most affl uent families with a master’s or higher degree, all and by gender
and race-ethnic group, 2013–2014 (in %) ... 239 Table 7A.5 Labor force underutilization rates of men 16 and older
by household income level, educational attainment,
2013–2014 averages (in %) ... 239 Table 7A.6 Labor force underutilization rates of women 16
and older by household income level, educational
attainment, 2013–2014 averages (in %) ... 239 Table 7A.7 Labor force underutilization rates of 16 and older
by family income level, educational attainment level
for Asian adults, 2013–2014 averages ... 240 Table 7A.8 Labor force underutilization rates of 16 and older
by family income level, educational attainment level
for Black adults, 2013–2014 averages ... 240 Table 7A.9 Labor force underutilization rates of 16 and older
by family income level, educational attainment level
for Hispanic adults, 2013–2014 averages ... 240 Table 7A.10 Labor force underutilization rates of 16 and older
by family income level, educational attainment level
for Native American/other adults, 2013–2014 averages ... 241 Table 7A.11 Labor force underutilization rates of 16 and older
by family income level, educational attainment level
for White adults, 2013–2014 averages ... 241 Table 7A.12 Poverty rates of 16 and older persons in 2012–2013
by labor force underutilization status in March 2013 and March 2014 by selected race and educational
attainment level ... 241 Table 7A.13 Poverty/near poverty rates of 16 and older persons
in 2012–2013 by labor force underutilization status in March 2013 and March 2014 by selected race
and educational attainment level ... 242
List of Tables
xxviii
Table 7A.14 Low-income rates of 16 and older persons in 2012–2013 by labor force underutilization status in March 2013 and March 2014 by selected race and educational
attainment level ... 243 Table 7B.1 Unemployment rates of workers by gender and race-ethnic
group in selected educational attainment and family income groups, 2013–2014 (in %) ... 245 Table 7C.1 Defi nitions of the variables appearing in the logistic
probability model of being an underutilized labor
force participant ... 247 Table 7C.2 Findings of the logistic probability model of the
underutilized status of individual members of the
labor force in 2013–2014 ... 248 Table 7E.1 Findings of the logistic probability model of the
underutilized status of individual members of the
young adult labor force under age 30 in 2013–2014 ... 250 Table 12A.1 Support of selected policies related to inequality
and opportunity ... 439 Table 13.1 Dashboard of opportunity “Leading Indicators”
in United Kingdom ... 456 Table 13.2 The Colorado opportunity framework ... 457 Table 13.3 Indicators used in the U.K., Colorado, the Social
Genome Model, and Reeves’ paper
on “Five Strong Starts” ... 462
List of Tables