Finance:Skilled through alternative routes

From HandWiki
Short description: Adults without bachelor's degrees who have experience that position them to higher-wages

Skilled through alternative routes (STAR) is a term to describe adults in the United States without bachelor's degrees who have work experience and skills that position them for transitions to higher-wage jobs.[1] First identified in a 2020 research paper in the National Bureau of Economic Research (NBER), STARs made up approximately 70 million workers in the U.S. economy as of 2021.[2][3]

Description

The majority of American workers (approximately 64% as of 2020) do not have a four-year bachelor's degree,[4][5] including 68 percent of Black workers and 79 percent of Hispanic workers.[6]

STARs have gained skills through a variety of routes other than the four-year college degree, often including community college, workforce training, bootcamps, certificate programs, military service or on-the-job learning. Research from December 2020 indicates that 30 million STARs have the skills to earn 70 percent more than their current wages.[7] However, 60 percent of STARs who changed jobs over the past decade transitioned to new positions with the same or lower wages than their previous position.[8]

Proponents of supporting STARs argue that a more intentional approach to hiring, training, and recruiting STARs can help to increase the representation of non-white individuals in the workforce.[9][10]

References

  1. Blair, Peter Q. (2021-07-01). "Skills, Degrees and Labor Market Inequality". National Bureau of Economic Research. https://www.nber.org/papers/w28991. 
  2. Blair, Peter Q. (2021-04-01). "Searching for STARs: Work Experience as a Job Market Signal for Workers without Bachelor's Degrees". National Bureau of Economic Research. https://www.nber.org/system/files/working_papers/w26844/w26844.pdf/. 
  3. Auguste, Byron (2021-07-20). "The majority of Americans lack a college degree. Why do so many employers require one?". The Washington Post. https://www.washingtonpost.com/opinions/2021/07/20/majority-americans-lack-college-degree-why-do-so-many-employers-require-one/. 
  4. Census, U.S. (2020-03-20). "U.S. Census Bureau Releases New Educational Attainment Data". U.S. Census. https://www.census.gov/newsroom/press-releases/2020/educational-attainment.html. 
  5. Blair, Peter Q. (2021-06-28). "The Disparate Racial Impact of Requiring a College Degree". The Wall Street Journal. https://www.wsj.com/articles/the-disparate-racial-impact-of-requiring-a-college-degree-11593375171. 
  6. "STARs: Skilled Through Alternative Routes". Opportunity@Work. 2021-04-01. https://opportunityatwork.org/stars/. 
  7. Lohr, Steve (2020-12-03). "Up to 30 Million in U.S. Have the Skills to Earn 70% More, Researchers Say". The New York Times. https://www.nytimes.com/2020/12/03/technology/work-skills-upward-mobility.html. 
  8. Fain, Paul (2020-12-04). "Job Transitions for Skilled Workers Without Degrees". Inside Higher Ed. https://www.insidehighered.com/quicktakes/2020/12/04/job-transitions-skilled-workers-without-degrees. 
  9. Baskin, Kara (2021-03-24). "5 ways to close the tech industry's race gap through education". MIT Sloan. https://mitsloan.mit.edu/ideas-made-to-matter/5-ways-to-close-tech-industrys-race-gap-through-education. 
  10. Chopra, Karan (2020-07-19). "We shouldn't chase economic recovery; we should chase economic redesign". Fortune. https://fortune.com/2020/07/09/coronavirus-jobs-economic-recovery/. 

Further reading