The Federal Reserve Bank of Cleveland recently completed an analysis conducted by Jonathan James of the impact of higher level mathematics courses on degree attainment and labor market outcomes such as unemployment and median wages. While higher level math has long been associated with educational advancement, it was surprising how closely these factors were linked.
The study found that advancing past Algebra II correlated strongly with finishing high school, graduating from college, and thriving in the workforce. Specifically the study argued, "Among students who have at least completed the ninth grade, the child of a college graduate is 50 percent more likely to graduate high school than a child of a high school dropout. For students who have completed geometry or above, this difference shrinks dramatically, with children of college graduates being only 6 percent more likely than children of high school dropouts to obtain a high school diploma."
The study also found an impact on labor market outcomes among students with and without higher level math courses. It explains, "The median wage for full-time workers aged 20-30 who dropped out of high school after completing only Pre-Algebra, Algebra I, or less is $12.70 per hour. In contrast, dropouts with geometry or Algebra II have a significantly higher median hourly wage of $14.36. Likewise, the unemployment rate for dropouts with less math is 33 percent, while for dropouts with more math, it is 27 percent."
The question arising from the analysis is the degree to which these results are a product of causation or correlation. Is math an inherently valued skill that will boost your career prospects? Or does taking higher level math signify that the student is talented and would be successful regardless of what math course he or she completed.
For more information and the entire study, visit: http://www.clevelandfed.org/research/commentary/2013/2013-14.cfm