Press Release
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A study revealed students who complete full-time programs in technology centers could expect to earn significantly more than those with no education beyond high school and contribute more than $2 billion of additional income earned. The study completed in February 2006 by economist Mark Snead, examined the impact of Career Tech’s full-time programs by estimating lifetime income gains. Snead, director of the Center for Applied Economic Research at Oklahoma State University’s William S. Spears School of Business, constructed a lifetime income model to estimate the portion of wage gains realized by full-time completers that can be attributed to CareerTech training. The model was based on findings from existing research along with Census Bureau and Oklahoma Employment Security Commission wage survey data. The model was applied to more than 11,680 students completing full-time training programs in fiscal year 2002. “It is important to measure the economic impact of CareerTech education and training because of the public’s investment and the role of technical education in fulfilling the state’s economic development mission,” said Phil Berkenbile, state director of CareerTech. The study revealed that those completing full-time programs earn an estimated hourly wage of $10.47, or about 12 percent more than those of similar age with no education beyond high school. Hourly wage rates of $12.46 are significantly higher for adults, average age of 30 years, who complete full-time programs at technology centers than those completing high school, average age of 18 years, who earn $7.58. Nearly one of five Oklahoma workers age 18 and older report having completed a vocational or technical program, the most common level of educational attainment beyond high school of Oklahoma workers. Other key findings indicate the typical 25-year-old who completes a CareerTech full-time program can expect to add more than $152,000 (in current dollars) to their lifetime earnings stream, related to those completing no additional education beyond high school. The programs offering the highest reported post-training hourly rate
are MRI technician, In addition to individual income gains, the study also computed impact on a statewide basis, said Berkenbile. At each technology center about 400 students completed full-time programs in FY02 and added an estimate $61.4 million (in current dollars) to their lifetime earning stream. For all the 11,680 students completing full-time training, it is expected that they will add about $1.8 billion to their lifetime income stream. For those who stay in the state, about $1.1 billion of added income is estimated to be earned in Oklahoma. According to the study, income gains will produce sizeable yearly economic ripple effects and support an estimated $990 million in future earnings for other workers, or a total income gain of more than $2 billion as a result of training. Some of the other benefits of training include faster entry into the labor force for young workers and an increase in the likelihood of becoming a professional or manager. Vocationally trained workers also experience lower rates of unemployment than workers with only a high school diploma. -30- Posted January, 2007 |