CEOs for Cities is a civic lab of todays urban leaders catalyzing a - - PowerPoint PPT Presentation

CEOs for Cities is a civic lab of today’s urban leaders catalyzing a movement to advance the next generation of great American Cities.

CEOs for Cities

The Talent Dividend

Sponsored by:

City Dividends

National Gains

Talent

Talent retention is key.

Quality of place Quality of opportunity

The Approach

• Cities differ in educational attainment
• Differences reveal opportunities for improvement
• Improvement gains estimated from evidence
• Gains represent potential payback from better

policies

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Riverside-San Bernardino-Ontario, CA (MSA) Las Vegas-Paradise, NV (MSA) New Orleans-Metairie-Kenner, LA (MSA) Louisville-Jefferson County, KY-IN (MSA) Jacksonville, FL (MSA) San Antonio, TX (MSA) Memphis, TN-MS-AR (MSA) Tampa-St. Petersburg-Clearwater, FL (MSA) Birmingham-Hoover, AL (MSA) Orlando-Kissimmee, FL (MSA) Oklahoma City, OK (MSA) Detroit-Warren-Livonia, MI (MSA) Phoenix-Mesa-Scottsdale, AZ (MSA) Buffalo-Niagara Falls, NY (MSA) Cleveland-Elyria-Mentor, OH (MSA) Virginia Beach-Norfolk-Newport News, VA-NC (MSA) Providence-New Bedford-Fall River, RI-MA (MSA) Cincinnati-Middletown, OH-KY-IN (MSA) Houston-Sugar Land-Baytown, TX (MSA) Pittsburgh, PA (MSA)

• St. Louis, MO-IL (MSA)

Nashville-Davidson-Murfreesboro-Franklin, TN (MSA) Miami-Fort Lauderdale-Pompano Beach, FL (MSA) Dallas-Fort Worth-Arlington, TX (MSA) Sacramento-Arden-Arcade-Roseville, CA (MSA) Los Angeles-Long Beach-Santa Ana, CA (MSA) Salt Lake City, UT (MSA) Richmond, VA (MSA) Milwaukee-Waukesha-West Allis, WI (MSA) Indianapolis-Carmel, IN (MSA) Kansas City, MO-KS (MSA) Charlotte-Gastonia-Concord, NC-SC (MSA) Rochester, NY (MSA) Philadelphia-Camden-Wilmington, PA-NJ-DE-MD (MSA) Columbus, OH (MSA) Chicago-Naperville-Joliet, IL-IN-WI (MSA) Portland-Vancouver-Beaverton, OR-WA (MSA) San Diego-Carlsbad-San Marcos, CA (MSA) Baltimore-Towson, MD (MSA) Atlanta-Sandy Springs-Marietta, GA (MSA) Hartford-West Hartford-East Hartford, CT (MSA) New York-Northern New Jersey-Long Island, NY-NJ-PA (MSA) Seattle-Tacoma-Bellevue, WA (MSA) Denver-Aurora-Broomfield, CO (MSA) Minneapolis-St. Paul-Bloomington, MN-WI (MSA) Austin-Round Rock, TX (MSA) Raleigh-Cary, NC (MSA) Boston-Cambridge-Quincy, MA-NH (MSA) San Francisco-Oakland-Fremont, CA (MSA) San Jose-Sunnyvale-Santa Clara, CA (MSA) Washington-Arlington-Alexandria, DC-VA-MD-WV (MSA)

Metro Variation in College Attainment

Source: 2008 ACS

The Hypothesis

• Better-educated = higher incomes
• Better-skilled = more innovation and productivity

The Evidence

Education Explains Most Differences in Metro Income

Annual Per Capita Income, 2005

NO RAL ROC SLC BIR BUF OKC HAR RIC LOU MEM JAC NAS AUS MIL CHA PRI VB IND COL LV SAT KC ORL SAC CLE CIN POR PIT DEN BAL TPA STL SAN MIN SEA PHO DET ATL MIA HOU PHI DAL CHI LA NY

y = 763.27x + 16466 R

2 = 0.5846

$30,000 $32,000 $34,000 $36,000 $38,000 $40,000 $42,000 $44,000 $46,000 $48,000 $50,000 15 20 25 30 35 40 45

Percent of Population with a 4-Year College Degree, 2006 Sources: BEA (Income), Census (Education)

Estimating the Gain

• Each 1 percentage point increase associated with

$763 increase in per capita income or about $1,900 to $2,290 per year for average household (2.5-3 people)

• Important to note: education gains are product of

shift in entire skill distribution - not just moving a certain number of people from no degree to college graduation

Shifting the Distribution

Dropouts Advanced Degrees

Educational Attainment

Source: 2009 American Community Survey Houston-Sugar Land-Baytown, TX Metro Area

Talent Measures No. %

• f People

Educational Attainment (Population 25 and Older) Less than High School 19.9% 725,236 High School Only 23.8% 867,368 Some College 22.6% 823,635 AA Degree 5.8% 211,375 Four-year Degree 27.9% 1,016,789 Educational Attainment of Young Adults (25 to 34) Less than High School 19.3% 172,195 Four-year Degree 27.3% 243,571 Talent Dividend Goal 28.9% Additional degree holders 36,444

Why Focus on Educational Attainment?

Source: Bureau of Labor Statistics, July 2011

Three-quarters of the workers that were fired over the last year were let go on a permanent, not a temporary basis.

• - David Rosenberg, July 2009

Why Focus on Educational Attainment?

Source: Bureau of Labor Statistics, Second Quarter 2011

Data from Public Agenda surveys of US adults from the past decade

Belief in Need for College Degree to Be Successful Is on the Rise

Unemployed Americans More Likely to Feel They Need Degree to Succeed

National survey of 872 likely voters conducted April 17-20, 2010 by Greenberg Quinlan Rosner

43 65 52 32 Need Degree Don't Need Degree Need Degree Don’t Need Degree

Unemplo nemployed ed Emplo Employed ed

Houston's Talent Dividend

If we increase Houston's college attainment rate from 27.9 percent to 28.9 percent (36,444 additional new grads)… The Houston Talent Dividend =

$4.2 billion annually

Talent Dividend Metrics

Moving the needle on any one of these while holding the

• thers constant will lead to increasing postsecondary

attainment. Moving the needle on all five will quickly accelerate cities reaching and surpassing their Talent Dividend goal.

• On-time high school graduation rate
• College continuation rate
• Adult postsecondary participation rate
• College completion rate
• College graduate retention rate

Who Needs to Participate in Achieving the Talent Dividend

Colleges & Universities – Increase retention and completion rates, increase enrolled adults, retain graduates in city, credits for experiential learning and portfolios Businesses - Flex time, flex place, classes on corporate campus, open house on occupations, accredited corporate education, identify employees with some college but no completion, tuition reimbursement Foundations - Align giving to reach goal, hold grantees accountable, measure and report results at key milestones, provide independent advocates

K-12 - Increase college-going behavior Nonprofits - Align programs to reach goal, take responsibility for results Government - Flex time, classes in city buildings,

• pen house on occupations, identify employees

with some college but no completion, tuition reimbursement Economic Development - Embed talent development and retention as a priority in strategic plan

Who Needs to Participate in Achieving the Talent Dividend

National Talent Dividend Network

• Foster cross-sector leadership and participation
• Provide metrics for comparison
• Share learning across cities
• Accelerate local action

Talent Dividend Prize: $1 million for your city.

Made possible with generous support from:

www.ceosforcities.org