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Explore the employment dynamics, poverty statistics, and income disparities in the Tyler area. Discover how initiatives like minimum wage increases and education improvements can uplift the community towards a path of economic growth. Learn the need for reducing single-parent households, boosting educational attainment, attracting higher-paying industries, and enhancing labor force participation rates in East Texas. Uncover thought-provoking insights on equality, meritocracy, and cultural influences that shape educational outcomes and workforce success.
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2018 ETHNN Summit: A Call to Action! Employment Panel Presentation Poverty in the Tyler Area Dr. Rod Mabry Director, Hibbs Institute Fisch Professor of Economics of Finance Soules College of Business
Tyler Area--9 Counties East Texas—23 Counties
U.S. Poverty Thresholds, 2017 • Individual $12,488 • Family of 4 $25,094 Source: U.S. Census Bureau; 2017 is the most recent.
Proportion of People in Poverty Source: American Community Survey 2012-2016; U.S. Census Bureau via JobsEQ
Proportion of Tyler Area Population in Poverty, Compared • 3% more than Texas • 14% more than USA Source: American Community Survey 2012-2016; U.S. Census Bureau via JobsEQ
Measures of Income Source: American Community Survey 2012-2016; U.S. Census Bureau via JobsEQ
Tyler Area Income Measures Compared to Texas • Median Household Income 11% below TX ($8,265 less) • Per Capita Household Income 15% below TX ($4,206 less) Source: American Community Survey 2012-2016; U.S. Census Bureau via JobsEQ
30 Least Paid Occupations in East Texas, (Out of 457 Categories; Annual Earnings) Source: JobsEQ
Low Paid Occupations with Significant Presence in Tyler Area(Below $23,000 Annual Wages) Source: JobsEQ
Hibbs Institute StudyLas Cruces, NM, Minimum Wage • Minimum wages are intended to increase incomes of lowest paid workers, thereby improving their lives • Minimum wage rates are rarely set above market wage, and rarely yield earnings above poverty for family of four • Las Cruces upcoming $10.10 wage rate = $20,200 annually • Three consecutive Las Cruces increases: • January 1, 2015 $8.40 • January 1, 2017 $9.20 • January 1, 2019 $10.10
Las Cruces, NM Minimum Wage Increase Results • Personal Income increased, but total Business Output decreased • Employment loss occurred, as expected, but was less than one-tenth of a percent (-0.07%).
4 Reasons for Lower Income in Tyler Area Working age share of population is smaller 3.3% proportionately fewer people aged 18 to 64 in Tyler Area compared to Texas 4.5% fewer compared to USA Labor force participation rate lower—13.3% lower
Labor Force Participation Rate (Civilian population 16 years and over) Source: American Community Survey 2012-2016; U.S. Census Bureau via JobsEQ
4 Reasons for Lower Household and Per Capita Income in Tyler Area Single-parent households Tyler MSA: 75% two-parent households $72,824 mean household income Tyler MSA: 19% female single-parent households $28,967 mean household income Tyler MSA: 6% male single-parent households $47,714
Differences in Family Earnings in Tyler MSA Source: U.S. Census Bureau
4 Reasons for Lower Household and Per Capita Income in Tyler Area Lack of University and Graduate Education Tyler Area, Texas &USA—same 1.4% of population in High School Tyler Area: More stop with a HS education (30% vs 25% for TX) Tyler Area: More stop with some college or a junior college degree (34% vs 30% TX) Tyler Area: Share with a university or grad degree is 33% smaller! (19% vs 29% TX)
Highest Education Attained, Ages 25-64 Source: American Community Survey 2012-2016; U.S. Census Bureau via JobsEQ
Final Thoughts . . . How to Reduce Poverty in East Texas? • Reduce female, single-parent heads of households • Increase all educational levels, but especially increase the proportion of people holding university bachelor’s and graduate degrees • As education increases, develop/attract higher paying industry • Raise labor force participation rates
Something for Thought (Not Discussed in Presentation) We learned in October, 2018 (as a result of an Asian discrimination lawsuit) that Harvard’s freshman class would be made up of 41% Asians, if based solely on academic merit. While we’ve heard no one suggest that Asian students are naturally smarter, many peopledo believe that Asian students are (culturally) driven to learn. But the drive is not coming from Asian students in a vacuum. How many of you, as parents, would sit on the piano bench with your child while he practices, or sit at the table with your child as she completes her homework after school? How much do you value education and work ethic?