Higher Education in the Coming Decade

by Martin Carnoy



Martin Carnoy
The effects of globalized labor markets on U.S. education have been profound, and more than ever before, favor the better educated. Market competition is now on a world-wide scale, requiring firms to be able to respond rapidly to changes in demand and costs. As a result, work- places are reorganizing their operations, shifting to "lean" production methods (just-in-time delivery, worker team quality control, team deci- sion making) and "lean" business practices (sub- contracting, outsourcing, and downsizing).
In turn, this has changed the skills and knowledge demanded of workers. Workers are gradually being defined not by the job they hold, but by their "knowledge portfolio"—the knowledge they have acquired over time by studying and working. An employee’s expert- ise and knowledge, rather than his seniority or loyalty to a firm, is becoming the new job security for workers of all ages. It is what pro- vides better-paid workers the ability to move across firms and even across types of work.

These economic-based changes hold important policy implications for the future of education. Globalization is polarizing the job mar- ket by eroding the number of middle-paying jobs in favor of high- and low-paying ones. A four-year college education is almost always required today to secure a higher-paying job. This change will increase the demand for higher education in the U.S., and accelerate another trend—the increasing dominance of the four-year college as the driving economic force behind the educational system.

Indeed, the 1990s have seen a rapid increase in new college enroll- ments among individuals from groups that have, historically, been marginalized during their K-12 education, and who are often the first member of their family to attend college. At the same time, dropout rates from four-year colleges average about 50 percent nationwide. The tendency has been to place blame for this situation on individual students, or on the failings of the K-12 educational system. This, despite the fact that we know some colleges and uni- versities taking students with similar average SAT scores have much higher success rates, while others have worse ones.

More attention should and will be paid to accountability at higher education institutions, and particularly their capacity to teach successfully an increasingly diverse student body. The role of test- ing in higher education may and probably should also shift to assessing the success of colleges in teaching various subjects to national standards. It is also likely we will see more tests to screen prospective college freshmen, and that these tests will begin to drive the high school curriculum.

At the same time, as more students from low-income, less-educated families recognize the importance of a college education in securing a better paying job, elementary and secondary schools will experi- ence greater pressure to prepare these students for college.

Martin Carnoy is Professor of Education and Economics at Stanford University. His most recent book is Sustaining Flexibility: Work, Family, and Community in the Information Age (Russell Sage Foundation, 2000).


Spring 2002
Table of Contents
SIHER: The Stanford Institiute for Higher Education Research
Higher Education in the
Coming Decade
John W. Gardner Leaves
Profound Legacy
Cubberley Lectures
2001-2002
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