Degrees of Inequality: The Great Recession and the College Earnings Premium in U.S. Metropolitan Areas

• In Event: 1122 - Section on Inequality, Poverty, and Mobility Refereed Roundtable Session
  In Refereed Roundtable 60min: Table 08. Education, Ability and Context

Abstract

The Great Recession had devastating impacts on the U.S. labor market as millions of workers lost their jobs while others faced declining wages, compensation and job security. While college-educated workers experienced rising unemployment rates, the labor market effects of job loss were most strongly felt by workers without college degrees. In this paper, we examine the impact of the Great Recession on variations in the college earnings premium, or the gap between earnings of workers with four-year college degrees and those with high school degrees, across metropolitan statistical areas. We use multilevel growth curve models to analyze data from the American Community Survey and Decennial Censuses for 166 MSAs from 2006 to 2015. The findings show that the college earnings premium increased over the period of the Great Recession. On average, MSAs most strongly affected by the Great Recession had lower college earnings premium s; however, these areas experienced more growth over time in the college earnings premium compared to those less affected by the Great Recession.

Authors

• Angran Li, University of Connecticut

• Michael E. Wallace, University of Connecticut

• Allen Hyde, Georgia Institute of Technology