the hidden stem economy: the surprising diversity of jobs

Lectures/Events (BMW) Brookings Mountain West

9-18-2013

The Hidden STEM Economy: The Surprising Diversity of Jobs The Hidden STEM Economy: The Surprising Diversity of Jobs

Requiring Science, Technology, Engineering, and Math Knowledge Requiring Science, Technology, Engineering, and Math Knowledge

Jonathan Rothwell Brookings Mountain West

Follow this and additional works at: https://digitalscholarship.unlv.edu/brookings_lectures_events

Part of the Business Commons, Economics Commons, and the Education Commons

Repository Citation Repository Citation Rothwell, J. (2013). The Hidden STEM Economy: The Surprising Diversity of Jobs Requiring Science, Technology, Engineering, and Math Knowledge. Available at:Available at: https://digitalscholarship.unlv.edu/brookings_lectures_events/57

This Lecture is protected by copyright and/or related rights. It has been brought to you by Digital Scholarship@UNLV with permission from the rights-holder(s). You are free to use this Lecture in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s) directly, unless additional rights are indicated by a Creative Commons license in the record and/or on the work itself. This Lecture has been accepted for inclusion in Lectures/Events (BMW) by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact [email protected].

http://library.unlv.edu/

http://library.unlv.edu/

https://digitalscholarship.unlv.edu/brookings_lectures_events

https://digitalscholarship.unlv.edu/brookings_mtnwest

https://digitalscholarship.unlv.edu/brookings_lectures_events?utm_source=digitalscholarship.unlv.edu%2Fbrookings_lectures_events%2F57&utm_medium=PDF&utm_campaign=PDFCoverPages

http://network.bepress.com/hgg/discipline/622?utm_source=digitalscholarship.unlv.edu%2Fbrookings_lectures_events%2F57&utm_medium=PDF&utm_campaign=PDFCoverPages



https://digitalscholarship.unlv.edu/brookings_lectures_events/57

mailto:[email protected]

The Hidden STEM Economy The Surprising Diversity of Jobs Requiring Science, Technology, Engineering, and Math Knowledge

Jonathan Rothwell, PhD Associate Fellow Metropolitan Policy Program The Brookings Institution Washington DC

UNLV | September 18, 2013

1

Outline

1. STEM: The Conventional View 2. Redefining the STEM Workforce 3. The “hidden” STEM economy 4. The Las Vegas STEM Economy 5. Policies to boost STEM Demand and Supply


2

1. STEM: The Conventional View


3

“There must be a stream of new scientific knowledge to turn the wheels of private and public enterprise. There must be plenty of men and women trained in science and technology for upon them depend both the creation of new knowledge and its application to practical purposes.” -Vannevar Bush, 1945 From “Science, the Endless Frontier: A Report to the President” (Washington: U.S. Government Printing Office, 1945).

Presenter

Presentation Notes

This view is right but incomplete


4

0%

0%

6% 6%

7% 7% 8%

9% 9%

11%

15%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Share of US GDP Growth by Sector, 1980-2012

Innovative High-Patenting Industries are Driving even Measured GDP Growth

Source: Moody’s Analytics/BEA

Tech share of GDP 1980 = 4% 2012 =10%

STEM-knowledge drives innovation


5

Source: Brookings analysis of Georgia Tech Inventor Survey, Kauffman Foundation survey, and 2011 American Community Survey

88%

51%

10% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Share of inventors Share of tech companyfounders

Share of population25+

Bachelor’s of Science Holders as Share of Inventors and Tech-Founders

Presenter

Presentation Notes

Top companies listed on NASDAQ with STEM-educated founders: Google, Amazon, Cisco, QUALCOMM, Intel, Amgen, eBay


6

The Returns to Skill Are Increasing Salary Premium for Bachelor’s Degree vs. High School Diploma compared to Premium for Working in STEM Occupation, 1950-2010

Source: U.S. Census microdata from IPUMS. Regression of ln income on dummy variable for bachelor’s degree (or STEM occupation) controlling for cubic in age and sex for employed workers. Bachelor’s premium compares only BA earners to high school graduates.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1950 1960 1970 1980 1990 2000 2010

STEM Occupation Premium

Bachelors degree premium

Presenter

Presentation Notes

Top majors: Engineering, Bio, Physical, Math, Computer (lower unemployment)


7

There are many more job openings than graduates for computer, math, and engineering occupations

157,338 108,152

599,295 784,800

2,803,680

1,483,680

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Engineers Computer Science andMath

Business and Finance

2012 Graduates with Bachelor's or higher 2013 Advertised Job Openings


8

3%

2%

0%

4%

1%

-2%

1%

0%

-3% -3%

-2%

-1%

0%

1%

2%

3%

4%

5%

Bachelor's Degree Some College High School or Less

Annualized Growth Rates in Net Employment by Education for U.S. Economy, Tech and

Manufacturing Sectors, 1980-2011

U.S. Economy

Tech Sector

Manufacturing

Presenter

Presentation Notes

11.3 million jobs lost for high school or less manuf workers; but 1.2 mil gain for ba+ and .3 mil gain for some college

2. Redefining the STEM Workforce


9

Problems with conventional STEM definitions • No agreement among federal agencies

▫ The NSF uses “Science and Engineering” labor force which roughly corresponds to occupations common to workers with a bachelor’s degree in science or engineering fields.

▫ 2012 BLS task force adopted very similar approach ▫ Dept of Commerce used only part of the NSF definition and added a few

occupations to it • Arbitrary standards.

▫ Not based on knowledge or skill requirements, otherwise doctors would be included

▫ Not based on research and development activity, otherwise most computer workers would be excluded, as would social scientists

• Class bias? ▫ Computer machine programmers and all blue collar occupations are excluded, but

any computer worker in an office settings is counted. ▫ Science lab technicians are often included, but not electricians

• What about STEM community college programs, industry certifications, etc?


10

The cure is O*NET

• Occupational Information Network Data Collection Program

• Department of Labor funded data collection program

• Provides the most comprehensive database of job attributes by occupation including education, training, experience, skill, knowledge, tools and technologies, interests, and activities


11


12

The Six Core STEM Domains in O*NET Knowledge Survey and Their Survey Anchors

Highest Knowledge = 7 Least Knowledge =1

Computers and Electronics

1 3 6

Operate a VCR to watch a pre-recorded training tape

Use a word processor

Create a program to scan computer disks for viruses

Scales for Science (Physics, Chemistry, Bio), Computers, Engineering, and Math

Presenter

Presentation Notes

Chem: 6=Develop a safe commercial cleaner; 4=Use the proper concentration of chlorine to purify a water source Physics: 6=Design a cleaner burning gasoline engine; 4=Calculate water pressure through a pipe; BIO 4=Investigate the effects of pollution on marine plants and animals; 7=isolate/identify; new virus; MATH 6=Determine the mathematics required to simulate a space craft landing on the moon; 4=Decide how to calculate profits to determine the amounts of yearly bonuses ;

New Brookings definition of STEM A STEM occupation is one that requires an extraordinary level of knowledge in one or more core STEM fields.

Extraordinary, here, is defined as at least 1.5 standard deviations above the mean knowledge score for that field (just over 90th percentile), where science fields are grouped together as one

Advantages over standard approach Non-arbitrary and non-biased Non-binary Self-correcting Comparability to other skills


13


14

-15

-10

-5

0

5

10

15

20

25

1 16 31 46 61 76 91 106

121

136

151

166

181

196

211

226

241

256

271

286

301

316

331

346

361

376

391

406

421

436

451

466

481

496

511

526

541

556

571

586

601

616

631

646

661

676

691

706

721

736

751

766

781

796

STEM Score by Occupation

STEM Score = Sum(Knowledge Score – Mean Knowledge Score)

1.5 standard deviations above mean qualified for any field of STEM for binary definition

Presenter

Presentation Notes

Biomedical engineers; chemical engineers; biochemists and biophysicists, hydrologists

Results: More jobs, more career pathways to STEM


15

Source: 2011 BLS OES and O*NET

20%

50%

5%

19%

0%

10%

20%

30%

40%

50%

60%

Share of U.S. Jobs Less than Bachelor's degreerequired

Brookings STEM definition vs NSF

BrookingsNSF


16

$10,220

$8,104

$4,649

$841 $822

-$7,729 -$10,000

-$8,000

-$6,000

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

STEM Management Law Economics English All other domains

STEM knowledge is rewarded more than other types of knowledge

Marginal Effect of regression of median wages on standard deviation in STEM Knowledge for 719 detailed Occupations, controlling for Mode Education. Source: Brookings analysis of 2011 BLS OES and O*NET

3. The “hidden” STEM economy


17

Literature on Sub-bachelor’s STEM contribution to innovation • During industrial revolution:

▫ Ross Thomson, Structures of Change in the Mechanical Age: Technological Innovation in the United States, 1790 to 1865 (Johns Hopkins University Press, 2009);

▫ Kenneth L. Sokoloff and B. Zorina Khan, “The Democratization of Invention during Early Industrialization: Evidence from the United States, 1790-1846,” Journal of Economic History 50(2) (1990): 363-378;

▫ Jacob Schmookler, “Inventors Past and Present,” Review of Economics and Statistics 39(3) (1957): 321-333.

• Presently in terms of lower product defects, higher capacity utilization and efficiency, and R&D quality: ▫ Philip Toner, “Workforce Skills and Innovation: An Overview Of Major Themes

In The Literature” (Paris: OECD, 2011)


18


19

Selected Major Occupational Categories Sorted by STEM Score, with Share of Jobs that are STEM, and Share of U.S. STEM Jobs, 2011

High-STEM,

Percentage of Jobs

Share of U.S. High-STEM Jobs

Architecture and engineering 100% 9% Life, physical, and social science 87% 4% Healthcare practitioner and technical 76% 22%

Computer and mathematical science 100% 13% Installation, maintenance, and repair 53% 10%

Management 27% 6% Construction and extraction 40% 8%

. . . Production 23% 7%

. . . Food preparation and serving related 0% 0%

Healthcare support 5% 1%

Usually considered 0% STEM

Large source of STEM jobs

Presenter

Presentation Notes

Chemical technicians; medical lab technicians; medical equipment repairers. Most common: Registered Nurses; electricians; carpenters; computer systems analysts; machinsts. Most STEM intensive sectors are utilities/mining (energy) (44%), construction (38%), prof services (40%), manuf(30%), healthcare (29%), information (22%); accommodation 1%.


20

10%

14%

-1%

-10%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Less than a Bachelor's Degree Bachelor's Degree or Higher

Education-adjusted premium by STEM and Educational Requirements

High-STEM, any field

Not high-STEM in any field

Both STEM Groups Enjoy a Substantial Skill Premium Beyond Education

Note: Mean Sub-BA STEM Wage is $53,000, vs. $33,000 for those non-STEM sub-BA workers

Source: Brookings analysis of 2011 BLS OES and O*NET

Sub-BA STEM jobs are hard-to-fill UNLV | September 18, 2013

21

30%

33%

36% 38%

39% 42%

43%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Non-STEMSub-BA

Non-STEM All Jobs Non-STEM BA STEM Sub-BA STEM STEM BA

Non-STEM Sub-BA

Non-STEM

All Jobs

Non-STEM BA

STEM Sub-BA

STEM

STEM BA

Brookings analysis of Conference Board Help Wanted On-Line and O*NET

Share of 2011 job openings re-posted after 30 days in 100 largest metropolitan areas


22

1% 1%

23%

10% 11%

15%

30%

13%

5%

0%

5%

10%

15%

20%

25%

30%

35%

Bachelor's or Higher Some College High School or Less

Industry Up-Skilling: STEM Share of Occupations in High-Tech Industries by

Education of Workers, 1950-2011

195019802011

As it happens, STEM metros are:

• Richer • More innovative • More export-oriented • More resilient to economic downturn • Employ a larger share of their workers


23

5. Where Does Las Vegas Fit In?


24


25

Las Vegas MSA’s Ranking on Key STEM Metrics

Rank out of 356-358

Metro Areas

Patents per worker, 2007-2011 215

Growth rate in productivity, 1980-2010 237

STEM Bachelor's degree attainment rate, 2011 247

Average unemployment rate, 1990-2010 244

STEM knowledge of average occupation 355

STEM Share of Employment 328 Change in STEM Share of Employment, 2007-

2011 333

Presenter

Presentation Notes

Nevada is lowest scoring state; DC: AL; WY; MD; WA; VA; MA; CO: NM; TX high. Low is NY, FL


26

Profile on Brookings website: http://www.brookings.edu/research/reports/2013/06/10-stem-economy-rothwell/profiles


27

21%

15%

10% 9%

0%

5%

10%

15%

20%

25%

Sub-BA BA or higher

Education-adjusted Wage Premium for STEM Knowledge, Las Vegas vs

MSA, by Education, 2012

Las VegasAverage MSA

Las Vegas STEM Premium = 5th highest in largest 100 metros; 22nd of 348


28

0%2%4%6%8%

10%12%14%16%18%

2011 Employment by Major Occupational Group in Las Vegas Compared to USA for

Select Occupations

Vegas Share ofEmploymentUS Share ofEmployment

Very high employment in lowest STEM occupations

Low employment in highest STEM occupations

Source: BLS OES. Groups are sorted by LQ (MSA Share/USA Share). Only occupations with location quotient greater than 1.2 or less than 0.8 are shown.


29

Industries in Las Vegas with Highest Number of STEM Jobs in 2011

Industry Jobs

Percentage of Workers in

STEM Occupation

Average Salary

Share of STEM Workers with

Less than Bachelor's

Degree

Construction 81,220 42% $27,072 90%

Hospitals 27,198 62% $55,355 33%

Professional, Scientific, and Technical Services 56,867 29% $44,893 44%

Ambulatory Health Care Services 39,015 27% $40,233 30%

Repair and Maintenance 16,326 54% $22,304 95%

Las Vegas Metropolitan Area 1,135,137 15% $30,422 65%


30

Industries with at least 500 Jobs in Las Vegas with Highest STEM Knowledge per Worker in 2011

Industry Jobs

Percentage of Workers in

STEM Occupation

Average Salary

Share of STEM Workers with

Less than Bachelor's

Degree Data Processing, Hosting and Related

Services 701 73% $75,000 76%

Mining (except Oil and Gas) 2,116 33% $67,100 67%

Utilities 6,573 37% $76,155 52%

Transportation Equipment Manufacturing 2,559 52% $63,470 72%

Repair and Maintenance 16,326 54% $22,304 95%

Construction 81,220 42% $27,072 90%

Las Vegas Metropolitan Area 1,135,137 15% $30,422 65%

Source: O*NET and American Community Survey, 2011 via IPUMS

5. Policies to boost STEM knowledge


31

How to boost demand for STEM • Adopt cluster focus on growing STEM industries ▫ Skills, finance, infrastructure

• Foster entrepreneurship ▫ E.g. non-profit incubators

• Attract FDI ▫ Tax policy, marketing

• Research Universities ▫ R&D budget, SBIR, partnerships with industry

• State Fiscal Incentives ▫ R&D tax credits, investment funds


32

How to boost the Supply of STEM • Improve K-12 Quality ▫ STEM targeted magnet schools (NYC, Chicago) or high

school curriculum (Virginia Beach) or non-profit programs (MESA in California)

• Expand capacity of universities and community colleges ▫ Adopt best practices in recruitment & retention

• Attract STEM-oriented establishments and their workers

• Improve workforce development ▫ Intermediation ▫ Public (WIBs) or private training (apprenticeships)


33

More for information Email:

Jonathan Rothwell [email protected]

Tweet:

@jtrothwell Visit:

Brookings homepage: www.brookings.edu

Hidden STEM Economy report page: http://www.brookings.edu/research/reports/2013/06/10-stem-

economy-rothwell


34


35


36

Federal Government funding for STEM Education-related Programs by Primary Objective

Millions of Dollars,

approximate Share of Total

Bachelor's degree or higher STEM Education $1,942 45%

Training or sub-bachelor's level degree education (upper limit*) $940 22%

Education Research and Development $519 12%

Pre- and In-Service Educators $312 7%

Public Learning $296 7%

Engagement of Children $162 4%

Institutional Capacity $137 3%

Total federal funding for STEM training or education $4,308

Data is for fiscal year 2010, except the training and sub-bachelor's level degree funded, which is for 2012.Sources: National Science and Technology Council, Department of Labor's Trade Adjustment

Assistance Community College and Career Training Grant and H1B Technical Skills Training Grants. *These funds are not exclusively dedicated to STEM degrees or careers.


37

Manufacturing Industries Ranked by STEM Score, by STEM Share of Jobs and Share of STEM Jobs held by those with bachelor's degree or higher

STEM Share of Jobs

Share of STEM workers with BA

or higher Computer and Electronic Product 46% 60%

Petroleum and Coal Products 46% 34% Chemical 35% 54%

Transportation Equipment 41% 41% Machinery 40% 26%

Fabricated Metal Product 41% 12% Electrical Equipment, Appliance, and Component 31% 39%

Primary Metal 31% 20% ALL 35% 9%

Plastics and Rubber Products 21% 23% Miscellaneous 24% 37%

Paper 24% 29% Beverage and Tobacco Product 20% 36% Nonmetallic Mineral Product 22% 24%

Wood Product 19% 12% Food 15% 24%

Printing and Related Support Activities 16% 27% Furniture and Related Product 18% 19%

Leather and Allied Product 13% 30% Textile Mills 18% 19%

Textile Product Mills 12% 18% Apparel 8% 27%

Brookings analysis of O*NET and American Community Survey via IPUMS.

STEM degree holders are the most likely to be working in jobs related to their field of study


38

Source: Brookings analysis of 2010 National Survey of College Graduates

88% 83% 83%

75% 74% 72% 63%

0%10%20%30%40%50%60%70%80%90%

100%

STEM-related (e.g. Health) Computer and math

Engineering Physical science

Non-STEM Biological and related

Social sciences

STEM occupations earn high and growing wages


39

0.94

0.96

0.98

1.00

1.02

1.04

1.06

1.08

1.10

Wag

e G

row

th I

nd

ex

Growth in Inflation-Adjusted Median Wages for All U.S. Workers 16 and Over in STEM Occupations

All Full-time Workers 16and over

Computer andmathematicaloccupations

Architecture andengineering occupations

Life, physical, and socialscience occupations

Source: Bureau of Labor Statistics Current Population Survey and Consumer Price Index

8% growth for Computer/Math Occupations

Students drop out of STEM majors at higher rates A. National longitudinal survey data show 36% of

students who start as STEM majors switch to other fields

B. Data from Ohio Board of Regents show 57% of students who select a STEM major when taking the ACT do not finish as STEM majors

C. One explanation is that grades are lower than expected

• References: Xianglei Chen and Thomas Weko, “Students Who Study Science, Technology, Engineering,

and Mathematics (STEM) in Postsecondary Education” (National Center for Education Statistics, 2009); Eric Bettinger, “To Be or Not to Be: Major Choices in Budding Scientists” In Charles T. Clotfelter, ed., American Universities in a Global Market, Chapter 2 (Chicago: University of Chicago Press, 2010); Todd Stinebrickner and Ralph Stinebrickner, “Math or Science? Using Longitudinal Expectations Data to Examine the Process of Choosing a College Major,” Working Paper (The University of Western Ontario, 2012).


40

Presenter

Presentation Notes

1) Students Who Study Science, Technology, Engineering, and Mathematics (STEM) in Postsecondary Education Eric Bettinger, “To Be or Not to Be: Major Choices in Budding Scientists” In Charles T. Clotfelter, ed., American Universities in a Global Market, Chapter 2 (Chicago: University of Chicago Press, 2010). 3) Todd Stinebrickner and Ralph Stinebrickner, “Math or Science? Using Longitudinal Expectations Data to Examine the Process of Choosing a College Major,” Working Paper (The University of Western Ontario, 2012).


41

9,960,832

4,344,353

-3,939,473

-6,000,000

-4,000,000

-2,000,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Bachelors orhigher

Some college High school orless

Change in STEM Jobs, 1980-2011

Change in STEM Jobs, 1980-2011

the hidden stem economy: the surprising diversity of jobs

Documents