Reconnecting Opportunity Youth - Tulane University

the generous support of AT&T Louisiana. ... This number represents the number of disconnected youth at the 95 percent confidence interval during the 2008-10 ...
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Reconnecting Opportunity Youth The Issue | The Impact | The Opportunity for New Orleans

Data Reference Guide May 2012

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The Scott S. Cowen Institute for Public Education Initiatives at Tulane University The Cowen Institute is an action-oriented think tank that informs and advances solutions to eliminate the challenges impeding the success of K-12 education in New Orleans and beyond. It also serves as a clearinghouse for K-12 public schools in New Orleans to directly access the myriad experts and resources available at Tulane University. Our work is in the following key areas:

Applied Research Public Policy Civic Engagement Career/College Readiness Programs Scott S. Cowen Institute for Public Education Initiatives Tulane University 200 Broadway Street, Suite 108 New Orleans, LA 70118 504.274.3690 http://education.tulane.edu

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This guide was made possible through the generous support of AT&T Louisiana.

Opportunity Youth Opportunity Youth are young adults aged 16-24 years who are neither connected to school nor work. Often referred to as disconnected youth, these young adults are also described as Opportunity Youth because of the potential value they could add to their communities. This reference guide presents a snapshot of the impact of Opportunity Youth at the national, state, and metropolitan levels and includes the educational, socioeconomic, and demographic risk factors associated with Opportunity Youth. Due to their disconnection, data regarding the Opportunity Youth population is not readily available; the data included in this booklet comes from a variety of sources.

The Issue

In the United States, 6.7 millioni youth aged 16-24 years are considered Opportunity Youth.

In the New Orleans metro areaii, between 12,195 and 15,781iii low-income youth aged 16-24 are considered Opportunity Youth.

Source: Opportunity Road: The Promise and Challenge of America’s Forgotten Youth, January 2012

Source: Building an Inclusive, High-skilled Workforce in New Orleans’ Next Economy, March 2012

i. This number is based on a national cross-section survey conducted in August 2011 by Peter D. Hart Research Associates. ii. New Orleans metro area includes the parishes of Orleans, Jefferson, Plaquemines, St. Bernard, St. Charles, St. John, and St. Tammany. iii. This number represents the number of disconnected youth at the 95 percent confidence interval during the 2008-10 time period as calculated by the Greater New Orleans Community Data Center.

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The Impact In the United States in 2011, Opportunity Youth cost taxpayers approximately $93 billion in lost tax revenues and increased costs for social services. The total lifetime economic cost of all Opportunity Youth is estimated to be $1.6 trillion (or $258,240 per youth from the age of 16 years and older.)

In the New Orleans metro area in 2011, Opportunity Youth cost taxpayers between $170 and $220 million in lost tax revenues and increased costs for social services. The total lifetime economic cost of all Opportunity Youth in the New Orleans area is estimated to be between $3.1 and $4.1 billion.

Source: The Economic Value of Opportunity Youth

The Impact of Disconnection The low educational attainment of Opportunity Youth impacts their rate of employment and economic earnings. The average annual earning of a high school dropout is $18,900, compared to $25,900 for high school graduates and $45,400 for college graduates.1 Earnings estimates based on full-time, year-round employment dramatically illustrate the differences in the impact of low educational attainment over the worker’s lifetime. The estimated lifetime earnings of a high school dropout are $1.0 million (in 1999 dollars), compared to $1.2 million for a high school graduate. Individuals with a bachelor’s degree are estimated to earn on average $2.1 million over their lifetime, more than twice the lifetime