Summary of "Men without College Degrees Aren't Doing Well"
The Indicator from Planet Money
Release Date: December 6, 2024
Host: Waylon Wong and Darian Woods
Guest: Richard Reeves, President of the American Institute for Boys and Men

Introduction

In the December 6, 2024 episode of The Indicator from Planet Money, hosts Waylon Wong and Darian Woods delve into the economic struggles faced by men without college degrees. Titled "Men without College Degrees Aren't Doing Well," the episode explores wage trends, the impact of education on earning potential, and the broader societal implications of these economic disparities.

Job Market Overview

The episode begins with an overview of the U.S. job market statistics for November. Darian Woods shares that the economy added 227,000 jobs, but the unemployment rate slightly increased to 4.2%. Despite this uptick, hourly earnings saw robust growth, rising by 4% over the past year, averaging just over $35 an hour (00:18). This sets the stage for a deeper examination of wage trends, particularly focusing on men's earnings.

Spotlight on Men's Wages

Waylon Wong introduces the episode's focus on men's wages, highlighting the importance of understanding how different subsets within this group are faring economically (00:38). The hosts aim to uncover whether cultural shifts are keeping pace with economic changes affecting men without college degrees.

Personal Perspective: Royal Pollard

Anecdotal evidence is provided through the story of Royal Pollard, a server at a Thai restaurant in New York City. Royal shares that, including tips, he earns around $35 an hour, which initially seemed satisfactory. However, he expresses concerns about price inflation eroding his wages:

“I remember buying certain pair of shoes and it would be like $90, then it's like 100, then it's like 1:15. I was like, no, I'm not, I'm not doing that. That's crazy.” (02:27)

Royal also reflects on the disappearance of well-paying jobs that didn't require a college degree, noting:

“Before you used to be able to get like, at least like a warehouse job that pays good money. Now it's not a thing. Right? Like, I mean, it's hard to come by a job like that.” (02:48)

Expert Insight: Richard Reeves on Wage Trends

To provide a comprehensive analysis, the hosts interview Richard Reeves, who discusses the nuances of wage trends among men based on education levels (03:02). Reeves emphasizes the importance of adjusting wages for inflation and differentiates between the Consumer Price Index (CPI) and the Personal Consumption Expenditures Price Index (PCE), advocating for the latter due to its ability to better account for changing spending patterns over time.

Key Findings:

• Men with a Four-Year College Degree: Wages have increased by 38% from 1979 to 2023.
• Men with Some College or an Associate's Degree: Wage growth is stagnant, with only a 3% increase.
• Men with a High School Degree: Wages have declined by 6%.
• Men with Less Than a High School Degree: Wages have declined by 11%.

Reeves highlights a class divide where men with higher education degrees have experienced significant wage growth, whereas those without such degrees have seen their wages stagnate or decline. He notes:

“The overall story is of a class gap. And so the basic story is men with a four year college degree have seen healthy wage growth. I mean, it's not quite as big as the growth that women in that group have seen.” (05:08)

Underlying Causes of Wage Stagnation

Reeves identifies several factors contributing to the economic challenges faced by men without college degrees:

1. Economic Shifts: Transition from manufacturing, steel, and mining jobs to sectors that require higher education has reduced well-paying opportunities for non-college-educated men.
2. Exclusionary Practices: Historically, certain well-paying jobs were accessible primarily to white men, often excluding workers of color, which artificially inflated wages in those sectors.
3. Union Decline and Free Trade: The erosion of unions and increased global competition have further diminished wage growth in traditional blue-collar industries.
4. Psychological Impact: Many men compare their economic status to their fathers', leading to a sense of inadequacy and economic disenfranchisement.

Reeves emphasizes the psychological toll of these economic realities:

“There are a lot of guys out there who are actually poorer than their dads, even though they've got at least as much education as their dads had.” (06:23)

Potential Solutions and Policy Recommendations

When discussing potential remedies, Reeves suggests a multifaceted approach:

1. Demand-Side Interventions:

   • Infrastructure Investment: Creating jobs in sectors like infrastructure can provide well-paying opportunities for working-class men.

2. Supply-Side Strategies:

   • Vocational Training and Apprenticeships: Enhancing access to vocational education and trade schools as viable alternatives to four-year college degrees.
   • Promoting "HEAL Jobs": Encouraging men to enter health education, administrative roles, and other literacy-based professions traditionally dominated by women.

3. Cultural Shifts:

   • Redefining Masculinity: Moving beyond the traditional role of men solely as breadwinners to encompass roles as fathers, community members, volunteers, and leaders in diverse sectors.
   • Policy and Cultural Support: Implementing policies that reinforce the value of men in various societal roles to prevent economic disenfranchisement from leading to cultural backlash.

Reeves points out the urgency of addressing both economic and cultural dimensions to prevent societal division:

“If we don't get this right, it could be the beginning of a reaction. And they think how we treat what's happening right now will determine which way we go.” (08:01)

Conclusion

The episode underscores a significant economic and social issue: men without college degrees are increasingly struggling financially compared to previous generations. Through statistics, personal narratives, and expert analysis, The Indicator highlights the urgent need for both economic policies and cultural shifts to address wage stagnation and redefine men's roles in modern society. By investing in education alternatives, infrastructure, and fostering inclusive cultural narratives, there is potential to bridge the class divide and support men in achieving economic stability and personal fulfillment.

Notable Quotes:

• Royal Pollard (02:27):

  “I was like, no, I'm not, I'm not doing that. That's crazy.”

• Richard Reeves (05:08):

  “If we don't get this right, it could be the beginning of a reaction. And they think how we treat what's happening right now will determine which way we go.”

• Richard Reeves (07:52):

  “There are a lot of guys out there who are actually poorer than their dads, even though they've got at least as much education as their dads had.”

This comprehensive analysis from The Indicator provides valuable insights into the economic challenges facing men without college degrees and emphasizes the need for strategic policy interventions and cultural transformations to address these disparities.