Columbia University study determines economic impact of opportunity youth
1/26/2012
By Julie Cushing
The statistics on opportunity youth ages 16-24, who are neither enrolled in school nor working, are highlighted in a new study by Columbia University researchers titled The Economic Value of Opportunity Youth. The study takes into account a variety of behaviors and outcomes of the actions of youth in this group and concludes that out-of-school and out-of-work youth will have an economic impact of 1.3 trillion dollars on the United States in their lifetime.
The study also determines that students who don’t stay in school and aren’t regularly employed are much more likely to struggle in life. While the national unemployment rate hovers around 9 percent, for opportunity youth the rates are considerably higher, especially among minorities. Among black and Hispanic opportunity youth, the unemployment rates are a staggering 30 percent and 20 percent, respectively. For white opportunity youth, the national rate is doubled at 18 percent. While the work rate is an important indicator in underlining the lack of opportunities for these young people, education is an equally important factor.
Staying in school increases a person’s chances at moving on to higher education and getting a job. However, the estimated graduation rate of these opportunity youth is 18 percent below the national average, and for those who do graduate, nearly 32 percent of those surveyed said they were unaware of how to apply to college, let alone pay for it. Nearly 1 million of the 18-24 year olds surveyed are heads of household with incomes below the poverty line who have demanding family obligations that make it difficult to prioritize education.
Only 1 percent of opportunity youth obtain an Associate’s or Bachelor’s degree by the age of 28. Despite the seemingly overwhelming obstacles to their success, many of these individuals still have high aspirations. Among the most common jobs desired by those who were surveyed were careers in medicine, law, education and the military.
To put the statistics on these opportunity youth in perspective:
- 6.7 million: The number of internet users in Kazakhstan, the number of wisdom teeth removed unnecessarily each year, the number of youth ages 16-24 who are out of school and have no immediate plans to return.
- 1.3 trillion dollars: The total budget deficit of the United States in 2011, the bailout capacity of the IMF, the total lifetime fiscal burden of the same 16-24 year olds today.
The results of the Columbia study on opportunity youth point to a severe gap in educational and job prospects for too many American youth. The report was released earlier this month in conjunction with a joint report from America’s Promise Alliance and Civic Enterprises titled Opportunity Road: The Promise and Challenge of America’s Forgotten Youth.