Part of economic development is addressing educational inequity
For decades, the ticket to success has been post-grad education. Michael Hicks, a leading economist from Ball State University, sums it up well with the phrase “education is the path to a middle-class life.” This doesn’t mean that those who head straight into the workforce can’t be successful. I’m a strong believer in choosing the path that’s best for you. However, I can’t deny that jobs requiring degrees usually offer higher pay, consistent wage growth and more security. There are other ways to achieve middle-class life, but the attainment of a college degree is the most likely path to that outcome.
Unfortunately, Hoosier students are moving away from degrees. Indiana’s college-going rate has plummeted from 65% to only 53% since 2015. COVID-19 has exacerbated the problem, and the cost of schools is another deterrent. We’ve discussed this issue, but we’ve missed a key component: our Black students. College enrollment is dropping across the board, but the decline is more severe among students of color. The college-going rate for Black students has dropped shockingly low to 44%. There’s been some progress through the Indiana Black Legislative Caucus (IBLC) with auto-enrollment for the 21st Century Scholars Program. But more should be done, especially across the aisle, to change the tide.
Looking at Indiana’s education landscape, it’s easy to understand why Black students forgo college. Let’s look at the most recent college equity report: only 17% of Black students received an Honors diploma, only 40% earned AP or dual credit and only 27% met early success benchmarks. To top it off, the U.S. Supreme Court ruled that affirmative action was unconstitutional. These measures encouraged minority students to apply with the promise of equitable admissions. College may not be for everyone, but Black students are clearly underserved.
Post-grad employment opportunities are similarly dismal. The GOP majority has focused on work-based learning, but Black students are underrepresented in these programs. Registered apprenticeships are a moderately successful program with 21,768 active apprentices who make an average wage of $19.50 per hour. But Black Hoosiers only make up 8.5% of Indiana’s active apprentices. A recent report for the Fiscal Policy Committee highlighted that a “participation and achievement gap remains for African Americans and other minority populations.” Even when they do these programs, they still face inequity in the workforce. Black Hoosiers experience racial disparities in their wages, with differences as large as $2,000 after graduating from adult education or technical programs.
It’s a Catch-22. We encourage Black students to join work programs instead of college. Then in these programs, they receive lower pay, struggle to get credentialed and struggle to find lasting employment. How do we address these disparities? How do we keep Indiana from falling further behind other states? We could start by re-examining the tax cuts given to big companies or redirecting the “embarrassment of riches” given to non-transparent development projects. Just think, if we “cut the fat” on corporate tax cuts and non-transparent incentives provided for Indiana Economic Development Corporation’s (IEDC) projects we could fully fund education. College degrees are better for economic development, especially for individual wage growth than the LEAP district.
Let’s redirect our limited resources to human infrastructure which is undoubtedly more important to Indiana’s economic success. Let's begin by funding our universities to the national average. Let’s encourage college attendance since it’s the easiest path to the middle class. Let’s provide support to those pursuing degrees or job training by fully funding child care, transportation and educational grant programs. If we continue following our current path, Indiana will fall further behind with the most adverse effects felt by Black and other marginalized Hoosiers.