|
|
Wisconsin IDEA
Insight • Data • Economics • Analysis
| |
Returns to Education
Lifetime Earnings Increase from $1.60 million for a HS degree to Almost $2.5 million for Bachelor’s
| |
Does the return to higher education justify the rising costs to students, particularly considering the current tight labor markets? Using the most current Census data for Wisconsin, the average earnings, regardless of educational attainment, is $50,039. When examining the Wisconsin-wide average across different levels of educational attainment, there is a clear upward movement as education increases.
For example, average earnings for a working person with only a high school degree (inclusive of GED equivalency) is $40,104, but for those with some college or two-year associate degree the average increases to $45,729, and for a bachelor’s degree the average increases to $61,428. Assuming a 40-year working career, and adjusting for years out of the labor force while pursuing higher education, the simple lifetime earnings go from $1.60 million for a high school degree to $1.73 million for an associate degree to almost $2.5 million for a bachelor’s degree. There are exceptions to this general pattern. For example, a plumber in Wisconsin, which requires a high school, or equivalency, as well as a training apprenticeship, has median earnings of $71,690 in 2022. An early childhood education (preschool and daycare) administrator, which tends to require a bachelor’s degree, has median earnings of $46,910.
| |
|
|
Econ Quiz: Workforce Over 65
| |
Americans over age 65 are wealthier, healthier, and more educated than those in previous generations. This good fortune has coincided with societal changes that promote working longer. The age at which one can access social security has moved from 65 to 67. Most retirement plans replaced defined benefit pensions, which incentivize retirement at a certain age, with defined contribution plans, such as 401k or 403b plans, which incentivize longer participation in the workforce.
As a result of these changes, today’s Americans aged 65 or older are working at higher rates than those seen in recent generations. According to a recent study by Pew Research Center, 19% of adults aged 65 or older participate in the workforce today, as compared to 11% in 1987. Sixty-two percent of those aged 65 or older who are in the workforce are employed full time, as compared to 47% of older workers in 1987. After adjusting for inflation, older workers are earning more in 2022 than they have in previous generations, making a median of $22 per hour in 2022 as compared to $13 per hour in 1987. The average annual earnings for workers aged 65 reached $58,600 as compared to $27,600 in 1987 and $5,200 in 1964, after adjusting for inflation. Overall, older workers accounted for 7% of total U.S. wages and benefits in 2022, up from only 2% in 1987.
That brings us to today’s question: Those aged 65 and older made up 6.6% of the overall workforce in 2022. Do you think the trend will be toward greater or lesser participation for this age group over the next decade? What proportion of the workforce is predicted to be aged 65 and older in 2032?
A. 19.1%
B. 15.4%
C. 8.6%
D. 5.4%
E. 2.1%
| |
OVERVIEW
Wisconsin follows the nationwide trend of a relatively small yet growing number of diverse business owners. This recent growth suggests a promising and economically important future for diverse business owners despite evidence that they face significant challenges.
Over 48,000 of Wisconsin’s businesses are owned by people of color. They employ nearly 55,000 workers and contribute over $1,600,000,000 in payroll receipts. These businesses provide specific products and services, generate income for themselves and their employees, create meaningful establishments in their communities, contribute to broader economic development, and aid in wealth accumulation in their communities.
In Wisconsin, the growth of businesses owned by people of color has been dramatic. From 1997 to 2012, American Indian business ownership grew by 33.2% while Asian ownership more than doubled, Latino ownership nearly tripled, and Black ownership virtually quadrupled. For comparison, nonminority-owned businesses grew by 10.7% during the same period.
Despite substantial growth in the last few decades, Wisconsin may be missing out on additional economic benefits from businesses owned by people of color because they remain underrepresented. Businesses owned by people of color represented 10.9% of total businesses in 2019, despite people of color representing 19.2% of the state’s total population at the time. Across states, Wisconsin ranks 50th for the rate of business ownership among minorities.
| |
Rural Pharmacies an Overlooked Piece of the Rural Health Care System
Tuesday, February 20, 2024 | 12:00 pm - 1:00 pm (CST)
Explore the pivotal role of rural pharmacies in providing vital healthcare services, especially in areas affected by hospital closures. Learn why the decline of independently owned rural pharmacies is a pressing concern, affecting medication access and downtown vitality. Join us to discuss strategies and policy changes needed to address the rural pharmacy crisis and secure healthcare access for rural communities.
| |
Come to Platteville this spring and explore how local entrepreneurship drives the Driftless Region’s development. Network with fellow community champions from around the state. And gain new technical skills for promoting entrepreneurship in your small town.
An annual event in other Midwestern states, the CEC Conference is coming to Wisconsin for the first time in 2024. Business leaders, economic development professionals, local leaders, and community champions will gather in Platteville for two days of programming about strategies for supporting entrepreneurship in Wisconsin’s small towns.
Not a typical conference, CEC will tour attendees around Platteville to explore the Driftless Region’s entrepreneurial ecosystem. Local businesses will host panels and presentations, and conference attendees can check out the local food scene, visit key community sites, and network with fellow leaders in rural development. Participants will walk away with new perspectives and strategies for building entrepreneurial ecosystems in their small towns.
| |
Thursday, February 1, 2024 | 12:00 pm - 1:00 pm (CST)
Wisconsin will receive nearly $1.1 Billion from the federal government from the Broadband Equity, Access and Deployment (BEAD) Program to finance deployment of broadband internet services to underserved areas of the state. University of Wisconsin-Madison Extension cooperative and local government specialists will describe how cooperatives are created, how broadband services might be successfully deployed by developing member-owned broadband distribution cooperatives, and discuss potential financial partnerships with local units of government. The Badger state has a proud history of cooperation. More than 800 operating cooperatives are already owned by more than 2.9 million residents of the state. Wisconsin cooperatives operate in nearly every business sector and St. Norbert College Polling Center surveys demonstrate cooperatives enjoy the highest rate of consumer satisfaction of any business type.
| |
Rural Entrepreneurial Venture Specialist
The Rural Entrepreneurial Venture is a proven entrepreneurial development program designed to advance small-town economies through a targeted business approach. Launching in 2024, the Wisconsin REV program provides coaching, resources, and connections throughout the visioning and implementation process to REV communities as they develop their local entrepreneurial ecosystem. The Wisconsin Rural Entrepreneurial Ventures (REV) Specialist will play a crucial role in the strategic development and implementation of the Wisconsin REV program. This position requires coordination with core leadership and strategic partners, supporting and mentoring community coaches, and facilitating the selection and support of Wisconsin REV communities. The REV Specialist will work collaboratively with strategic partners to foster robust, sustainable entrepreneurial ecosystems in rural Wisconsin communities.
| |
(Agricultural & Applied Economics Association - 1/18/2024)
(WJFW - 1/12/2024)
(WEDC Office of Rural Prosperity - 1/1/2024)
(WisBusiness.com - 15/15/2023)
| |
|
Follow Us on Social Media
| |
|
Equal Employment Opportunity & Affirmative Action Statements
An EEO/AA employer, the University of Wisconsin-Madison Division of Extension provides equal opportunities in employment and programming, including Title VI, Title IX, the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act requirements. Please make requests for reasonable accommodations to ensure equal access to our educational programs as early as possible preceding the scheduled program, service, or activity.
| |
|
|
|
|
