Millennials Rising Symposium Booklet

MILLENNIALS RISING:
NEXT GENERATION POLICIES IN THE

WAKE OF THE GREAT RECESSION
A Cross-Cutting Policy Symposium
October 16-17, 2014
Long View Gallery

1234 9th St. NW
Washington DC 20001
TABLE OF CONTENTS
Welcome …………………………………………………………………………………….…………………………………………….. 1
Conveners and Supporters …………………………………………………………….……………………………………………. 3
Symposium Agenda …………………………………………………………….……………………………………………………… 5
Papers
Millennials Rising: Coming of Age in the Wake of the Great Recession ……………………………………….. 11
Reid Cramer
Millennials, Work, and the Economy …………………………………………………………….……………….……….. 17

William R. Emmons
Millennials and the State of Post-Secondary Education ………………………….…………………………........ 21

Jennifer Wang and Reid Setzer
Shifting Work and Family Trends among Millennials ………………………….…………………………………..... 27

Andrea Flynn
A Life-Cycle and Generational Perspective on the Wealth and Income of Millennials …………………… 33
William R. Emmons and Ray Boshara
Millennials and Homeownership …………………………………….……………………………………………………… 39

Reid Cramer and Elliot Schreur
Millennials and Student Debt …………………………………….……………………………………………………........ 45

Jennifer Wang and Portia Boone
Millennials and Retirement …………………………………….…………………………………………………………..... 51

Elliot Schreur
The Civic and Political Participation of Millennials .……………………………………………………………………57

Hollie Russon Gilman and Elizabeth Stokes
Description of Conveners …………………………………………………………………….……………………………………….61
Speakers …………………………………………………………………….…………………………………………………………..... 63
WELCOME
While the US economy continues its climb out of the depths of the Great Recession, one group of Americans is having a particularly
difficult time gaining its footing: Millennials. According to fundamental economic indicators, such as income and wealth, this rising
generation of Americans is lagging behind previous cohorts. Coming of age during a time of rapid change, Millennials are facing a
new set of challenges accessing the basic building blocks of success—getting an education, finding a job, raising a family, managing
finances, and engaging socially and politically.
From another perspective, however, Millennials may be uniquely prepared to succeed. They may be marrying less, having fewer
children, and putting off buying a home, but they are forging alternative pathways to adulthood. Their distinct set of characteristics,
opinions, and public attitudes continue to distinguish them from Baby Boomers and Gen Xers. Far from monolithic, they are the most
diverse, tolerant, and best credentialed generation in American history. Comfortable with new technology and having largely grown
up with social media, Millennials are able to connect with each other in new ways.
Despite these advantages, the choices they make–and those forced upon them by the economy—have exposed them to significant
levels of risk, which they increasingly have to manage individually rather than as a larger group. Traditional policy mechanisms
designed to mitigate these uncertainties, however, have lost relevance and effectiveness amid the world encountered by Millennials.
Current policies are certainly not doing enough to help young families move up the economic ladder, provide for their children’s
growth and education, and cultivate financial resilience. It is time to update our social policy thinking to respond to the unique
circumstances of the rising Millennial generation.
It is in this spirit of policy innovation that New America, Young Invincibles, and the Roosevelt Campus Network have come together
to convene this two-day policy symposium, Millennials Rising: Next Generation Policies in the Wake of the Great Recession.
We are collectively committed to elevating a constructive policy discourse capable of meeting the unique conditions and aspirations
of the Millennial generation. Our goal is to extend an evidence-based discussion among practitioners, policy analysts, and advocates
in order to explore a range of compelling policy responses to the new and often unprecedented realities facing Millennial Americans.
My colleagues and I are grateful that the Citi Foundation has been a key supporter of this gathering. Additional support has been
provided by the Annie E. Casey Foundation, the W.K. Kellogg Foundation, and the Kaufman Foundation. The initial idea for the
convening was hatched by New America in collaboration with the Center for Household Financial Stability at the Federal Reserve
Bank of St. Louis, whose work exploring the dynamics of the family balance sheet has clarified the severity of the recession’s impact
on younger families.
With your help and engagement, this symposium can provide a means to deeply examine the diverse set of issues affecting
Millennials that are often viewed in isolation, but are more usefully addressed together. My hope is that this symposium will
ultimately support the incubation and advancement of cross-cutting policy solutions that can improve the lives of the Millennial
generation and their families now and in the years to come.
Thank you for your time, energy, and engagement.
Sincerely,
Reid Cramer
Director, Asset Building Program
New America
MILLENNIALS RISING | @NEWAMERICA | 2014 1

present
Key support provided by
with additional support from

MILLENNIALS RISING:
NEXT GENERATION POLICIES IN THE
WAKE OF THE GREAT RECESSION
A Cross-Cutting Policy Symposium
October 16-17, 2014
Day One: October 16
9:30
Breakfast and Registration
10:00
Welcome
• Reid Cramer, New America

• Brandee McHale, Citi Foundation
10:20
Keynote
• Anne-Marie Slaughter, New America

Families and Flexibility: Reshaping the Workplace for the 21st Century
10:40
The Millennial Challenge
Although the economic, social, and technological conditions that shape our lives have changed, our public policies are
not keeping pace. This panel will explore how the outlook for Millennials differs from generations before and how
they’re navigating this new terrain.
Panelists
• Ray Boshara, Federal Reserve Bank of St. Louis

• Jen Mishory, Young Invincibles
• Sarah Audelo, Generation Progress
• Laurenellen McCann, New America
1
11:30
Millennials and the New Economy
The Great Recession has changed the economic landscape in fundamental ways, and with it, the pathways that
Millennials have to get ahead. This panel will explore where the jobs of the 21st century are being generated and how
that impacts who is likely to succeed and who is likely to fall behind.
Panelists
• Nona Willis Aronowitz, NBC News

• William Emmons, Federal Reserve Bank of St. Louis
• EJ Reedy, Kauffmann Foundation
• Elisabeth Jacobs, Washington Center for Equitable Growth
• Richard Deitz, Federal Reserve Bank of New York
12:30
Lunch
12:45
Keynote Conversation
• James Bullard, President, Federal Reserve Bank of St. Louis

• Matt Yglesias, Vox (interviewer)
1:30
The Future of Building Wealth
The ability to build wealth and manage finances is foundational to achieving what have long been the markers of the
American Dream: going to college, buying a home, and having a secure retirement. But, a dragging economy and
anemic housing market undermine the wealth building prospects of the Millennial generation. This panel will explore
what options are available for building and protecting wealth within this inhospitable context and how policy can help
restore access to a secure financial future.
Panelists:
• Brandee McHale, Citi Foundation

• Rourke O’Brien, Harvard University
• Tim Chen, NerdWallet
• Jennifer Tescher, Center for Financial Services Innovation
• Rohit Chopra, CFPB
2
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2:30
Education and Training
A college degree has become a prerequisite for success in a competitive job market, yet is costing more and returning
less to those with that credential. This panel will question current assumptions about how higher education is financed,
organized, and accessed and propose new models that allow this system to work better for more students.
Panelists
• Jennifer Wang, Young Invincibles

• Kevin Carey, New America
• Zakiya Smith, Lumina Foundation
• Kisha Bird, Center for Law and Social Policy
3:30
Policy Workshops
Breakout sessions focusing on each of the topics covered earlier in the day will provide participants an opportunity to
reflect on what was discussed, suggest additional ideas in need of development, and elevate policy solutions to address
the challenges Millennials face in these areas.
4:30
Report out
5:15
Reception
Screening: Welcome to Fairfax

• Eva Bloomfield, Participant Media/Pivot
3
Day Two: October 17
8:30
Breakfast
9:00
Work and Family
Traditional assumptions about who constitutes a family and what parents need to provide for the financial, educational,
and developmental needs of their children have been upended over recent generations. This panel will explore what
families need at work and at home to be effective caregivers and breadwinners and the public policy options for
removing barriers to being successful in each of these roles.
Panelists
• Conor Williams, New America

• Jessica Grose, Slate
• Donna Levin, Care.com
• Carrie Gleason, Center for Popular Democracy
10:00
Social Engagement and Political Participation
Millennials have come of age in a world shaped by technology and social media, which has influenced how they connect
with each other and their perceptions of what it means to be part of a community. This panel will look at the new ways
that Millennials are organizing and mobilizing to change the world around them.
Keynote:
• Wendy Spencer, Corporation for National and Community Service
Panelists
• Hollie Russon Gilman, New America

• Sabeel Rahman, Roosevelt Institute
• Tiana Epps-Johnson, New Organizing Institute
• Prerna Lal, Advancing Justice--Asian American Justice Center
• Russell Krumnow, Opportunity Nation
11:00
Policy Workshops
Breakout sessions focusing on each of the topics covered earlier in the day will provide participants an opportunity to
reflect on what was discussed, suggest additional ideas in need of development, and elevate policy solutions to address
the challenges Millennials face in these areas.
12:00
Report out
12:30
Lunch
4
1:00
A New Social Contract for the Millennial Generation
Millennials are operating within a policy framework crafted for the needs, expectations, and circumstances of
generations long since passed. This panel will distill the reflections generated during the Policy Workshops into an
agenda that can inform a new social contract for the Millennial Generation.
Panelists
• Rachel Black, New America

• Perry Bacon, Jr. NBC News
• Taylor Jo Isenberg, Roosevelt Campus Network
• Mark Schmitt, New America
2:00
Close
5
MILLENNIALS RISING: COMING OF
AGE IN THE WAKE OF THE GREAT
RECESSION Reid Cramer
At the close of the 20th century, a formative identity began to to bolster the prospects of this generation must not be based
take shape among a new generation of American teenagers. on the needs and characteristics of previous generations;
These kids were not just the next wave of disaffected and they must be aligned with their prevailing public attitudes,
disinterested Gen X youth. Rather, they were upbeat and preferences, and attributes and be reflective of the modern
engaged. Reared by parents determined to be supportive and economic, technological, and social context. Every
caring, this cohort of children had a decidedly optimistic and generation has a past, present, and future. Understanding
outward-looking disposition. They were positive and where Millennials have come from and how they have fared
confident, ready to play (and later, to collaborate) with one in the wake of the Great Recession provides a foundation for
another. They were interested in learning from the adults designing effective public policy that can help this
around them as opposed to questioning their authority. generation achieve its promise and reach its full capabilities,
Deploying new and seemingly transformative technologies, which will benefit us all.
they embraced their Millennial moniker and prepared for the
task of improving society around them. They were poised for The Millennials’ Past
greatness and ready to make their mark on the 21st century.
Classifying and delimiting generations is more art than
But a decade and a half later, events beyond their control are science. There is no formal arbitration board that defines
hampering their potential. They are entering what should be when one generation begins and another ends. Yet the
the prime of their working lives and family-forming years. generational phenomenon is hard to ignore. The Millennials’
Instead, through an accident of history, they are entering worldview has been shaped by a shared historic experience
adulthood in an age of uncertainty. The Great Recession and by the parental attributes of the adults who raised them.
dramatically altered the economic landscape, and Noted generational scholars Neil Howe and William Strauss
Millennials will be dealing with its consequences for decades were early in identifying a distinct generation emerging on
to come. Five years after the official end of the recession, the American scene. As they wrote in 2000:
incomes remain stagnant, and, compared to their parents at
a similar age, Millennials have lower levels of wealth and Meet the Millennials, born in or after 1982—the “Babies on
higher levels of debt. The weak recovery has exacerbated Board” of the early Reagan years, the “Have you Hugged
inequalities in our society and created pervasive conditions Your Child Today?” sixth graders of the early Clinton years,
for downward mobility instead of opportunities for more the teens of Columbine, and this year, the much-touted high
broadly shared prosperity. Navigating the risks on the road school Class of 2000, now invading the nation’s campuses. 1
to adulthood has become more arduous for this rising
generation, and this is undermining their potential, Howe and Strauss called the rise of Millennials a “good news
reordering their aspirations, and complicating many of their revolution” because the children were inclined to behave not
key life decisions. worse as teenagers, as did Gen Xers before them, but better.
Breaking the mold of the disillusioned youth, they were
These challenges are concerning not just for the lives of committed to building up new social institutions instead
today’s young adults, but also for the fortunes of the nation than tearing the old ones down. They were decidedly not an
as a whole. It should be a collective project to reverse echo or offshoot of their older Gen X siblings, and they were
Millennials’ declining mobility, support their family choices, unlikely to make the same set of choices as Boomers. Not as
and cultivate their resiliency. Successful policy interventions selfish or narcissistic, eschewing risk-taking and profanity,

Millennials were more cohesive and hopeful. Not apathetic many in the middle. Some live in cities or suburbs, others in
or antisocial, they were comfortable as team players. rural communities. Millennials will be so diverse in their
Participation and engagement were rewarded. They ethnicities, religions, and lifestyles that the idea of a
respected the rules laid out before them, they trusted their “typical” American may lose any meaning. There are already
parents, and they looked down on disruptive behavior. fewer Christians and more religiously unaffiliated people in
America. Millennials have come of age when women have
Making generalizations about Millennials is inherently expanded their role in public life and more mothers remain
difficult. There are many economic and cultural in the work force.
crosscurrents in play, and there will necessarily be different
experiences among any twenty-year age group that includes From their years as children, Millennials exhibited a range of
those entering high school as well as full adults already positive social habits that broke the mold of expectations
parenting teens. Still, there is a social center of gravity that about youth. They behaved better than their parents did as
helps determine a collective self-image and sense of destiny. kids and valued teamwork, achievement, modesty, and good
conduct. 5 They are largely tolerant and accepting of
Millennials’ sunny disposition may have been a product of a differences among them.
larger society that was itself feeling optimistic about having
children. The concept of family planning subtly shifted in With such fine traits, the Millennials’ destiny appeared
the years leading up to the first Millennials from how to bright. They were fortunate that their collective upbringing
prevent unwanted pregnancy toward how to increase occurred during a time of relative stability and prosperity on
fertility. Children became sought after and watched over. the global scale. Few Millennials will even remember the
Adult supervision increased, along with playdates, falling of the Berlin wall, which represented an end to the
homework, and curfews. Cold War that menaced the globe. Exciting technological
innovations, reflected most prominently in new
The subsequent birth boom has made Millennials the largest communications tools such as cell phones and the Internet
generational cohort, one that is destined to make its mark on represent boundless possibility and opportunity. As they
the country as a whole. If we consider Millennials as anyone increased their technological savviness, they felt they were
living in America who was born between 1982 and 2002, then on the cutting edge of history. Their civic spirit and sense of
they are currently 85 million strong. 2 Twenty-seven percent service was preparing them to make a difference.
of Americans are Millennials. In addition to rising fertility
rates, an immigration surge has created a particularly large In an influential essay on “The Organizational Kid,” which
generation. By 1998, the absolute number of children in the appeared in The Atlantic in 2001, David Brooks described a
U.S. exceeded the previous Boomer-era peak. The new ethos that had taken over college campuses. “[College
generation’s full impact is still on the horizon, but it is students] are not trying to buck the system, they’re trying to
coming. By 2020, Millennials will make up more than one in climb it, and they are streamlined for ascent.” 6 Raised by a
three adult Americans, and by 2025, Millennials will watchful set of helicopter parents eager to swoop in at a
comprise as much as 75 percent of the U.S. workforce. moment’s notice to provide support and protection, the
students had internalized a pressure to follow—and even to
Demographically, the Millennials are the most racially and thrive within the limits of—well-defined rules. Millennials
ethnically diverse generation in American history. By 2000, did not consider themselves a “lost” generation, and they
nonwhites and Latinos accounted for almost 36 percent of were not “fighting to emancipate itself from the past.” Their
the 18-or-under population, which was nearly three times the world seemed just. And just about right. Remarking on the
minority rate among seniors; ten percent had a noncitizen aspiring students he observed at elite colleges, Brooks wrote,
parent. 3 Influenced by the large wave of Hispanic and Asian “If you work hard, behave pleasantly, explore your interests,
immigrants coming to the U.S. for the last fifty years, 43 volunteer your time, obey the codes of political correctness,
percent of Millennial adults are non-white, the highest share and take the right pills to balance your brain chemistry, you
of any generation. 4 Given the ethnic composition of the will be rewarded with a wonderful ascent in the social
Millennial generation, it appears clear they will lead an hierarchy.” 7
irreversible coloring of America.
They were poised for great things. But there were bumps in
The diversity of the Millennial generation means that there is the road. The Great Recession has ushered in a different
a wide range of experiences. Some members of the reality.
generation have grown up in poverty, other affluence, with
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The Millennials’ Present sectors. All of these trends have contributed to a steady
decline in median income for Millennial households.
Today, Millennials are the young adults of America. The
youngest are poised for high school and the oldest may be Wealth and Debt
older than you think, nearly in their mid-30s and already
owning homes, having children, or still living with their Previously, each generation born during the first half of the
parents. They have come of age in an era of risk and 20th century was wealthier than the one before, but that
uncertainty. The youngest Millennials have only known a pattern has broken down. Millennials, and many of the
world that existed either within the depths of the Great younger Gen Xers, have accumulated less wealth than their
Recession or its aftermath. This event has shaped their parents did at similar ages. The median net worth for
experiences and complicated their life choices. While many families headed by an individual under the age of 35 is
remain upbeat, others are becoming resigned to life currently around $10,000, which was $7,000 less (in 2013
outcomes that are less than they hoped. dollars) than it was in 1995, a 41 percent decline. 11 Less
wealth and savings have made Millennials ill-prepared to
Like the members of countless generations before them, make the type of investments that build up the asset side of
Millennials are growing up, but they are forging a different their balance sheet, such as buying homes. Among all the
set of pathways than their predecessors. Their expectations age cohorts, Millennials have made the largest contribution
for upward mobility have been muted, and while to the decline in the national homeownership rate. 12 They
technological innovations continue to be a source of new also participate and contribute to retirement savings plans at
opportunities, it has also—for those who lack access—raised lower levels. 13
new barriers to success. A growing recognition has emerged
that persistent inequalities have created a reality where Looking back over the last quarter century, older Americans
prosperity is not widely shared. Without the protections and have (in real terms) nearly doubled their wealth, and middle-
family support systems that had been in place for many of age Americans have increased their wealth by nearly two-
them during their childhood, Millennials are left to fend for thirds, but the wealth of younger Americans has actually
themselves. As a result, Millennials are facing serious declined. While middle age and older Americans have
challenges to reaching their full potential. Among many recovered much of the wealth lost in the recession, younger
dimensions, the Millennials’ present has left them Americans have recovered only about one-third. There has
vulnerable and increasingly financially insecure. been growth on the debt side of the Millennial balance sheet,
particularly with rising student debt. While much of this debt
Work and Income has been in the form of graduate student loans, which in
theory may eventually lead to higher incomes, it will still
As a generation, the Millennial experience is one of likely delay the timing of future asset building. Millennials
downward mobility. The large-scale loss of jobs in the years will be playing catchup for years to come to achieve the
following the recession and the slow recovery has made it levels of net worth accumulated by their parents.
difficult to climb the economic ladder. Compared to previous
generations, Millennials are less likely to be fully Education and Training
participating in the workforce. In 2012, forty-five percent of
all unemployed Americans—5.6 million—are between ages 18 If education is measured by credentials, Millennials are
and 34. 8 The unemployment rate for this age group remains better educated than prior generations. The share of 25- to
higher than it was in the 1990s. In 2012, the labor force 29-year-olds with a bachelor degree has grown by almost 50
participation rate for young adults declined to the lowest percent since the early 1980s. 14 More than 84 percent of
level in four decades. 9 today’s 27-year-olds spend at least some time in college, and
now 40 percent have a bachelor’s or associate’s degree. 15 A
Another 4.7 million young people are underemployed. 10 The higher proportion of 18- to 24-year-olds are going to college
drive for flexibility among employers has led to a rise in now than at any time in the past. 16
freelance and contract work. Employment tenures continue
to shrink. It is increasingly common for young adults to While these trends started before the recession hit, the
string together a series of part-time jobs. Many college economic downturn has been a boon for providers of post-
graduates are working in jobs that don’t require a degree, secondary education. Spending time in school to further
and for those with low-levels of education, job openings one’s education and training is a rational way to wait out a
remain concentrated in the low-wage service and retail poor economy. And many Millennials are doing so. But
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13
uncertainty remains as to whether the economy can offer family no longer provide a standard blueprint for success,
enough jobs to match the higher skills of the trained but at the same time, they have become unavailable as
workforce. Currently, there are twice as many college means of support. Individuals may have greater latitude, but
graduates working in minimum wage jobs than there were in they may feel as though they have to devise their own life
the years prior to the recession. 17 Stable career pathways are course. This is particularly challenging when confronting a
particularly elusive. job market that values flexibility and offers little stability.
Family and Children As a result, Millennials have had access to fewer financial
resources to protect them from economic shocks. Sociologist
Millennials are dramatically increasing the prevalence of Jennifer Silva concludes that “as traditional markers of
singlehood in America. They are less likely to marry than identity and adulthood confront them as unattainable and
older generations. Today, only 26 percent of Millennials are even undesirable, young people learn that creating their
married, compared to 36 percent of Gen Xers and 48 percent adult selves is an individual endeavor; yet their lack of
of Baby Boomers at a similar age. 18 When they do marry, they cultural, social, and economic capital means that they have
are older. Today, the median age for a first marriage is about few tools with which to undertake this immensely risky
five years older than it was in the 1950s and 1960s. task.” 22 The paradox is that even as individuals have a
Meanwhile, cohabitation with a committed partner is up, greater degree of discretion in the choices they make, they
rising to over 9 percent today from around 6 percent in 1997 have fewer options. This may be liberating for some, but
among 18- to 29-year-olds. 19 others will find the risk management taxing, especially as it
places responsibility for finding meaning and security in life
Millennials appear to value parenthood to a greater degree squarely on each individual. While the Millennials of today
than they value marriage. A 2010 Pew Research Center may believe personal choice and self-control are central to
survey found that 52 percent of Millennials say that being a their identity and thus hold themselves accountable for
good parent is one of the most important things in life, while failure, they are not the ones who have crafted the public
just 30 percent say the same about having a successful policies that have created such widespread precariousness.
marriage. This 22-percentage-point gap is much higher than
the 7-percentage-point gap the same questions generated in The “failure to launch” phenomenon has not occurred in a
1997. Not surprisingly, there has been an increase in the vacuum. The combination of the Great Recession and a
share of non-marital births. Slightly more than half (51 general rollback in social protections, typified by a push to
percent) of the births among Millennials in 2008 were to deregulate markets and replace pensions with individual
unwed mothers. Looking back at Gen Xers about a decade 401(k)-type retirement plans, has saddled individuals with
ago in 1997, the rate of birth to unwed mothers was about bearing risks that previously had been collectivized. As Silva
four-in-ten (39 percent). Regardless, fertility rates are down. writes, “Trapped by the prevailing economic insecurity,
The birth rate in the U.S. recently fell to a record low, many Millennials are lonely and betrayed, they cannot face
dropping for the fifth straight year. 20 Today, 29 percent of their futures, form meaningful relationships, or achieve a
women ages 18 to 29 have ever had children; in 1998, that sense of emotional well-being and self-respect.” 23
figure was 41 percent. 21
But the Millennials’ future is not yet written.
The delayed and lower incidence of both marriage and
childbearing reflect a pronounced trend of elongating the The Millennials’ Future
passage of American youth into adulthood. The declining
faith in the institution of marriage and the acceptance of Despite bearing the burden of financial hardships delivered
nontraditional lifestyle choices may contribute to these by a severe economic downturn, Millennials are optimistic
trends, but pervasive economic insecurity is likely a factor as about the future. Over 80 percent report that they currently
well. have enough money “to lead the lives they want or expect to
in the future.” 24 Their positive outlook, formed during
The Risk Shift childhood, has endured, even as it has been muted by
experience. 25 They remain on the lookout for finding new
Without much doubt, the Millennial experience is distinct. pathways to progress.
They are revisiting what have been the traditional markers of
adulthood. There is no longer a typical trajectory for the life Unfortunately, our current social policy framework is
course. As a result, the institutions of marriage, religion, and responding poorly to the task of providing young adults the
MILLENNIALS
means to effectively navigate a turbulent economy. Designed That may be too long to wait. Today’s Millennials need policy
for a 20th century industrial era, it is out of step with supports that will help them respond to the challenges their
contemporary realities. At issue is whether or not American generation will face tomorrow. Millennials are no longer just
institutions, both governmental and in the private sector, kids. They are older than you think, but they are still our
can respond to the unique circumstances of Millennials and future.
do so in ways that are aligned with the generation’s
prevalent attitudes, preferences, and attributes.
It is time to revisit the basic arrangements of the social Reid Cramer is Director of the Asset Building Program at New
contract. Millennials have a common interest in advancing a America.
set of policies, incentives, and social protections that can
more effectively collectivize risk, share responsibilities, and Endnotes
create economic opportunities for young adults. They should
be supportive of a policy agenda which is capable of
1
Neil Howe and William Strauss. Millennials Rising: The
reversing downward mobility, increasing access to education Next Great Generation, New York: Vintage Books, 2000, p. 4.
and training, supporting young families, making child
2
rearing less costly, and cultivating economic resiliency. U.S. Census Bureau. Others use the birth years of 1980 to
2000.
Whether Millennials will coalesce around a far-reaching
3
policy agenda, exert sustained support for specific Howe and Strauss 2000, p. 15.
proposals, and force our political process to respond are
4
open questions. Although Millennials have fewer Pew Research Center, “Millennials in Adulthood: Detached
attachments to traditional political and religious institutions from Institutions, Networked with Friends,” 2014.
than previous generations, they are connected to
5
Howe and Strauss 2000, p. 4.
personalized networks of friends, colleagues, and
acquaintances, which offer new tools for organizing 6
David Brooks, “The Organizational Kid,” The Atlantic, April
collective action. 26 Their aversion to extreme partisan politics
2001.
may keep them on the sidelines of current debates, but over
time their preferences will increasingly set the political 7
Ibid.
agenda. The salience of issues that have been at the root of
culture debates, such as same-sex marriage and abortion, 8
U.S. Bureau of Labor Statistics, 2013.
will likely decline. At the same time, Millennials
overwhelming support a stronger role for government in 9
Ibid..
order to make the economy work better, provide services,
and help those in need. 27 This has made them a key part of Catherine Ruetschlin and Tamara Draut, Stuck: Young
10
the current Democratic Party coalition. In 2008, 66 percent of America’s Persistent Jobs Crisis, New York: Demos, 2013, p.
Millennials voted for President Obama, a figure that declined 9.
to 60 percent in 2012. 28 Their political support appears to be
less about partisanship than affinity for a problem-solving 11
Federal Reserve Board, “Survey of Consumer Finances,”
role for government. The diversity, tolerance, and 2014.
progressivity of the Millennial generation will become
prevailing features of America in the years to come. 12
U.S. Census Bureau, 2014.
We know that the influence of the Millennial generation will 13

Federal Reserve Board 2014.
rise. The sheer size of the generation will make them an
increasingly larger share of the consumer economy and the 14
National Center for Education Statistics, 2014.
voting population. By 2020, 39 percent of eligible voters and
15
36 percent of expected voters will be Millennials; by 2028 Ibid.
their share of expected voters will be even higher. 29
16
Ibid.
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15
17
U.S. Bureau of Labor Statistics, 2014.
18
Pew Research Center analysis of Census and Current
Population Survey data.
19
U.S. Census Bureau, 2014.
20
Center for Disease Control, 2013.
21
Wang, Wendy and Paul Taylor, “For Millennials,
Parenthood Trumps Marriage,” Washington, D.C.: Pew
Research Center, 2011.
Jennifer Silva, Coming Up Short, New York: Oxford

22
University Press, 2014, p. 146.
23
Ibid., p. 156.
24
Pew Research Center, 2010.
25
While optimism is a generational characteristic,
Millennials are also less trusting of others; according the a
survey by the Pew Research Center, only 19% say most
people are good, compared to 31% of Gen Xers and 40% of
Boomers.
26
Pew Research Center 2014.
27
David Madland and Ruy Teixiera, “New Progressive
America: The Millennial Generation,” Washington, D.C.:
Center for American Progress, 2009, p. 17.
28
Ibid.
29
Ibid.

MILLENNIALS, WORK,
AND THE ECONOMY William R. Emmons
For most young people, earnings from work constitute second quarter of 2014 had fallen only to 11.9 percent for men
virtually all of their income. 1 Research shows that the and 9.4 percent for women. Again using the unemployment
trajectory of most individuals’ lifetime wage and salary rates among 45-54-year old men and women as benchmarks,
earnings is heavily influenced by labor-market conditions the gap between the unemployment rates of the 20-24-year
when they enter the workforce. 2 Entering a bad job market old groups and 45-54-year olds remained slightly elevated for
with relatively less education exacts an especially large and women but substantially higher among young men. 5
long-lasting toll on an individual’s health and life
satisfaction. 3 Clearly, then, the difficult job market facing A Deep Malaise among Young Workers
Millennials during and after the Great Recession poses a
significant challenge to the current and future well-being of Arguably more consequential than the unemployment rate is
today’s young adults, especially those with low levels of the employment rate—the fraction of all members of an age
education or training. group that is employed. While the unemployment rate
ignores everyone who drops out of the labor market for any
Current Conditions reason, the employment rate takes this category into
account. The distinction between the unemployment rate
The Millennial Job Market has been Historically Bad and the employment rate is particularly important for people
in their late 20s and 30s, who would be expected to have
The unemployment rate for men aged 25-34 peaked at 11.4 relatively low non-participation rates, especially among
percent during the second quarter of 2009 (this corresponds men.
to birth years between about 1975 and 1984, combining late
Gen-Xers and early Millennials). Among men aged 20-24, Why is non-participation normally lower among young
unemployment peaked at 18.9 percent during the first adults? People in their late 20s and early 30s are much less
quarter of 2010 (corresponding roughly to birth years 1986- likely to be full-time students than people under 25; they are
90). Women had lower and somewhat delayed much less likely than older people to be unable to work due
unemployment peaks: 9.5 percent in the third quarter of 2010 to disability; and they are extremely unlikely to have retired
for those aged 25-34 and 13.9 percent in the first quarter of early due to unusually high career earnings or having
2011 for women aged 20-24. The unemployment rate for received a windfall such as an inheritance or winning the
young workers during the last seven years has traced out a lottery. Hence, reasons for nonparticipation that are
path very similar to the one experienced during 1979-86, important in other age groups are not as relevant for young
which had been the worst job market in the post-WW II adults. 6
period prior to the Great Recession. The job market that
Millennials inherited has been historically weak. The most likely reason for a man to drop out of (or never to
have entered) the labor market in his late 20s or 30s is a lack
More recently, the unemployment rate for men and women of marketable skills or other impediments to continuing
aged 25-34 (birth years 1980-89) had fallen to 6.7 percent and employment (criminal record, resident status). Very few men
6.5 percent respectively, as of the second quarter of 2014. are primary caregivers for children; even when they are,
However, these rates were still noticeably above the rates for many continue to work, at least part-time. Among young
those aged 45-54 (birth years 1960-69), at 4.5 percent. 4 women, a somewhat larger group is taking care of children
Among those aged 20-24, the unemployment rate in the full-time.

In terms of the employment rate, the Great Recession and its percent in the second quarter of 2014, down 6.4 percentage
aftermath have pushed young adults into new territory. points from its peak in the second quarter of 2000.
During the 1950s and 1960s, the employment rate among
men aged 25-34 was in the low 90-percent range. Indeed, this A New (and Tough) Economy for Young Adults
group’s employment rate exceeded 90 percent as late as
2000, and it reached a cyclical peak of 88.4 percent in early In addition to the worst cyclical downturn in the post-WW II
2007. After falling as low as 79.6 percent during the Great period—from which recovery has been notably weaker for
Recession (first quarter of 2009), five full years of recovery young workers, especially young men—today’s young adults
have brought this key employment indicator back only to may be facing a long-term decline in the demand for high-
82.7 percent (second quarter of 2014). Even at its worst point skilled workers. 8 For successive cohorts of college graduates
during the severe 1981-82 recession, the employment rate for beginning in about 2000, the share of each cohort that is
25-34-year old men fell only as low as 83.4 percent. Thus, employed in jobs that require a college degree has declined
2014 will mark the sixth consecutive year during which the and inflation-adjusted wage profiles have flattened and
employment rate for men aged 25-34 remained continuously slipped lower.
below the lowest quarterly level previously recorded. 7 Young
Americans are participating in the economy and working at Even though this downshift in the demand for college-
historically low rates. educated workers directly affects only the (increasingly
numerous) people with those skills, the ripple effects are
The post-WW II employment rate for young women being felt throughout the labor market. A “cascading” effect
increased steadily until about 2000. Since that time, the transfers downward pressure on wages from the highest-
employment rate for 25- to 34-year-old women has fluctuated skilled young workers, who struggle to find skill-appropriate
by similar magnitudes as those experienced by 25- to 34- jobs, to other workers on lower-skill rungs of the job ladder.
year-old men since about 2000, although it declined less This is because lower-skill young workers face increasing
sharply during the Great Recession. Together, the competition from underemployed higher-skill workers
employment rate for both sexes aged 25-34 was only 75.5 suffering a paucity of opportunity in high-paying
occupations. At the very bottom of the skill distribution,
18
MILLENNIALS RISING | @NEWAMERICA | 2014 MILLENNIALS RISING | @NEWAMERICA | 2014
2
some potential workers are pushed out of the job market job market are the least-skilled and least-experienced
altogether as employers are able to fill even low-wage workers, who are disproportionately young and members of
positions with relatively higher-skilled applicants. 9 historically disadvantaged minority groups. Bottom line: An
increase in the minimum wage does not address the
The downshifting of demand for cognitive skills, and the problems facing the most vulnerable young workers.
ensuing cascading effect on lower-skilled workers, appears
to affect young adults the most because entry-level wage Response #3: Expand education and training opportunities
rates are the most flexible for many employers. The evidence
to date suggests that occupational downgrading and the Providing current and future workers with greater skills is a
resulting market-wide downward wage pressure since about goal endorsed by virtually everyone; as always, the devil lies
2000 may exert permanent effects on young adults’ earnings in the details. Small-bore efforts to increase the efficiency
trajectories. For the least-skilled and least-experienced with which education and training are delivered should and
workers, obtaining a foothold on the job ladder has become will be continued. But large-scale, transformative efforts to
increasingly difficult. bring the American labor force into the globally competitive
21st century—an education and training “moon shot”—
Policy Landscape appear to be pipe dreams in an era of near-total dysfunction
in Congress. Moreover, the “skills cascade” that is affecting
Four widely-touted policy responses to the weak job market young workers even more than older workers would—
are unlikely to solve the problems unique to young adults. paradoxically—be exacerbated by an expanded supply of
Indeed, each of these policy tools is in use today, yet the college graduates. Bottom line: More education is not the
employment outlook for young adults remains discouraging. answer—at least, not in the foreseeable future.
While current policy debates focus on supporting the
economy, they are not addressing the specific employment Response #4: Expand the Earned-Income Tax Credit
problems of young adults. From the perspective of young
workers, much of the current policy discussion amounts to Strictly speaking, the EITC is not an employment policy. It is
the prescription, “The medicine isn’t working; increase the an income supplement for lower-wage workers that is
dosage!” delivered as a tax refund. Initially, it rises in value as
earnings increase, but then phases out beyond a certain
Response #1: Redouble macroeconomic stimulus earnings threshold. Some economists argue that it can
impose a relatively high marginal tax rate in the form of the
By some measures, fiscal policy and monetary policy have phase-out schedule and thus dampens work incentives on
been more stimulative since 2008 than in many previous the margin. Others emphasize its role as a means to transfer
decades. There is broad consensus that expansionary fiscal cash resources to those with low-incomes and to improve
and monetary policy stabilized an economy in free-fall in their economic outlook. Regardless of its impact on work
2008 and 2009, but there is less agreement on how effective effort, the EITC and other elements of the social safety net
(or how expansionary) they have been during the recovery, should be part of any discussion of the job-market
which began in mid-2009. A growing chorus within and challenges facing young adults. Bottom line: The EITC is a
outside policy circles points to the need to “normalize” way to improve the current job prospects of young adults
macroeconomic policy, moving away from emergency who are already employed, rather than a means to create
settings toward more sustainable stances for fiscal and new job opportunities.
monetary policy. Bottom line: We should not expect
macroeconomic policy to become more stimulative in the The Challenges to Address
years to come.
Perhaps the most difficult challenge policymakers face when
Response #2: Raise the minimum wage it comes to addressing the employment situation of
Millennials is accepting that the unique problems facing
The Congressional Budget Office projected that an increase young workers may be due to forces beyond policymakers’
in the federal minimum wage to $10.10 per hour by 2016, control. These forces include the declining demand for
with annual inflation adjustments thereafter, would raise the skilled workers in the face of a rising supply of such workers,
incomes of some 16.5 million workers. 10 However, the CBO disproportionately affecting young adults of all skill levels; 11
estimated that total employment would decline by about an increasingly competitive and connected global economy;
500,000 workers. The most likely to be squeezed out of the a rapidly aging population that will reduce the economy’s
MILLENNIALS
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19
potential growth rate; and a damaged domestic economy 45-54—about 2.0 percentage points during the past four
that will continue to convalesce for many years, perhaps quarters—ranged between 1.3 and 1.7 percentage points
never regaining the growth trajectory it once followed. 12 during the previous economic expansion (2002-07). Among
women, the gap during the most recent four quarters of 1.8
Considering both the intractable nature of the forces percentage points lies within the range of 1.4 to 2.2
underlying generally poor short-term job prospects for young percentage points during the previous expansion (2002-07).
adults and the need for policy reforms to ensure the
5
sustainability of growth for economy as a whole, it makes The range of average annual gaps between the
sense to consider how the “generational risk” can best be unemployment rate of 20-24-year old men (women) and 45-
shared. 54-year old men (women) was 5.6 to 6.2 (4.1 to 5.6)
percentage points between 2002 and 2007. During the four
Perhaps Millennials have “drawn the short straw” in a quarters ending in the second quarter of 2014, the average
generational lottery. Current federal policies have a unemployment gap was 7.8 percentage points for men and
generational bias, to be sure; the beneficiaries are older 5.4 percentage points for women.
Americans. Considering only Medicare, for example, the CBO
6
estimates that the median person born in the 1960s will Melinda Pitts, John Robertson, and Ellyn Terry, “Reasons
consume benefits in excess of the taxes they paid (both in for the Decline in Prime-Age Labor-Force Participation,”
inflation-adjusted terms) of about $200,000. 13 A new inter- Federal Reserve Bank of Atlanta Macroblog, April 10, 2014.
generational social contract that recognizes the
7
undiversifiable risk borne by young Americans should be the It should be pointed out that employment rates for men in
beginning of the conversation. all but the oldest age groups have plumbed new depths since
the Great Recession.
8
Paul Beaudry, David A. Green, and Benjamin M. Sand, “The
William R. Emmons is senior economic adviser at the Center Declining Fortunes of the Young Since 2000,” American
for Household Financial Stability and an assistant vice Economic Review 104 (2014), No. 5, pp. 381-86; and Paul
president and economist at the Federal Reserve Bank of St. Beaudry, David A. Green, and Benjamin M. Sand, “The Great
Louis. Reversal in the Demand for Skill and Cognitive Tasks,” NBER
working paper, March 2013.
Endnotes
9
Perversely, minimum-wage laws may harm the lowest-
1
Among people aged 25-34 in 2012, 94.4 percent of total skilled, least-experienced workers in the presence of a skills
income came from employment or self-employment (i.e. “cascade.”
earnings from work). Among all people 35 or older, the share
10
of earnings from work was 77.7 percent (Bureau of the Congressional Budget Office, “The Effects of a Minimum-
Census and Bureau of Labor Statistics, Current Population Wage Increase on Employment and Family Income,”
Survey). February 2014.
11
2
Joseph G. Altonji, Lisa B. Kahn, and Jamin D. Speer, See Beaudry, Green, and Sand (2013, 2014).
“Cashier or Consultant? Entry Labor Market Conditions, Field
12
of Study, and Career Success,” Yale University working Robert E. Hall, “Quantifying the Lasting Harm to the U.S.
paper, September 2013. Economy from the Financial Crisis,” NBER working paper,
April 2014.
3
David Cutler, Wei Huang, and Adriana Lleras-Muney,
13
“When Does Education Matter? The Protective Effect of Congressional Budget Office, “Medicare and Social
Education for Cohorts Graduating in Bad Times,” NBER Security Payroll Taxes and Benefits for People in Different
working paper 20156, May 2014. Birth Cohorts,” September 2013.
4
The age-related unemployment gap has returned close to
normal for women but remains elevated for men. In
particular, the average annual difference in the
unemployment rate among men aged 25-34 and men aged

20 4
MILLENNIALS AND THE STATE OF
POST-SECONDARY EDUCATION Jennifer Wang
and Reid Setzer
Young people overwhelmingly believe that a post-secondary institutions have actually cut costs for facilities in recent
degree is important in today’s competitive economy. They years, and that the evidence for an “arms race” is less clear. 10
are right: a college education pays off tremendously. 1 When
jobs became scarce with the onset of the Great Recession, Another headline is the increasing complexity of our
many students responded by investing in their future. financial aid system. With more people borrowing to attend
Perhaps not surprisingly, enrollment in higher education college, advocates have turned their attention to how
increased 3.5 percent between 2009 and 2012. 2 But the complexity can be a barrier for many borrowers trying to
landscape of higher education in America has continued to navigate financial aid, from applying to aid to repaying
change in key ways, raising a series of fundamental loans. For example, when students apply for federal
questions. Is a college degree worth the rising cost of tuition? financial aid, the confusion sowed by the FAFSA (Free
What degrees are most useful in a 21st century economy? Application for Federal Student Aid) dissuades millions of
With more people today pursuing some type of students, which subsequently leads to higher levels of
postsecondary education, we all have a stake in reforms to student debt. 11 After graduating or leaving school, the nine
make higher education more inclusive, affordable, and different repayment plans for federal student loans further
accessible. confuse borrowers. The complexity of repayment plans likely
contributes to rising student loan default rates. 12
Current Conditions
Given these trends, it is not surprising that many people
Mounting costs frequently headline stories on the state of support reforming our system of post-secondary education.
higher education in America. From 2002 to 2012, prices for A 2013 public opinion survey conducted by the Lumina
undergraduate tuition, room, and board at public Foundation found that: 13
institutions rose 40 percent, and prices at private nonprofit
institutions rose 28 percent. 3 Since 1978, this rate of increase • 77 percent of Americans “do not think that higher
has been four times faster than inflation. 4 Tuition is rising at education is affordable to everyone who needs it.”
public institutions because states are allocating fewer
resources to them. 5 In 2013, states spent 28 percent less per • Only 22 percent of Americans says that $40,000 or
student on higher education than they did in 2008. 6 Before more is a reasonable amount for four years of
the Great Recession, net tuition provided around 36 percent undergraduate education.
of all higher education revenue, but today it is over 47
percent. 7 Students and families are responsible for a growing • Only 14 percent of Americans say that it is “very
share of the cost of college, and many make up the difference easy to find the average amount of loan debt
in student loans. students have when they graduate.”
Additional factors often cited for rising tuition include • Only 16 percent of Americans says it is “very easy
expensive labor costs and practices like teacher tenure, to find information on financial assistance for a
inefficient use of high maintenance cost buildings, increased college education.”
time until students graduate, the need for remedial teaching,
and difficulty transferring credits from one institution to • 22 percent of Americans said it was “very difficult
another. 8 Despite rising prices, many institutions compete to find information on the average amount of loan
for prospective students with amenities, which end up debt” students have when they graduate from the
pushing tuition even higher. Infrastructure improvements at college or university, while only 14 percent said it
some schools, such as golf simulators, climbing walls and was very easy.
hot tubs, and swimming pools in residence halls, may have
dubious educational merit but are emblematic of an • 20 percent of Americans said $20,000 to $30,000
educational “arms race.” 9 Other research suggests that was a reasonable amount for an undergraduate

student to accumulate over a four-year period; the via blogs, online message boards, and document sharing. 21
current average is around $30,000. However, completion rates for many MOOCS are far below
average and their effectiveness remains unclear.
Even though research confirms that earning a bachelor’s
degree gives graduates an advantage in annual earnings and A final category of alternatives to the traditional four-year
employment over their less educated peers, a 2014 survey degree path is apprenticeships. A Department of Labor study
found that 50 percent of Millennials indicated that their showed that apprentices earn an average of $300,000 more
biggest regret was “not getting more work experience in over their lifetimes than people who do not complete
college,” which was ranked ahead of regrets of studying apprenticeships. 22 Apprenticeship programs also tackle the
harder, looking for work sooner, or choosing a different problem of growing student debt, since apprentices earn
major. 14 credentials and are paid throughout their training and
acquisition of a post-secondary credential. 23 The Obama
The survey responses show that higher education faces a administration has promoted apprenticeships this year, and
number of issues beyond cost and financing, such as quality, its efforts have seen 10,000 more apprenticeships created in
utility, and alternative pathways. For instance, there is America since January. 24
evidence that students are not being trained to fill the jobs
that the economy is creating and are taking jobs that do not Policy Landscape
utilize their educational training.
Congress is moving toward reauthorizing the Higher
Experts estimate that the U.S. will fall three million degrees Education Act (HEA), the law that governs higher education
short by 2018. In other words, three million skilled jobs will in the United States. 25 There has been bipartisan agreement
remain unfilled due to a projected lack of qualified workers. that simplifying federal financial aid will result in benefits
More than 75 percent of manufacturers report a moderate to for students and borrowers. 26 Other topics for reform include
severe shortage of skilled resources. 15 This “skills gap” could holding institutions accountable for student outcomes, the
make it difficult for US employers to remain competitive in accreditation system, promoting more affordable methods of
the global market. Federal, state, and local governments, as delivering education like competency-based learning, and
well as private entities, are searching for ways to re-define altering the federal student loan program and repayment
these jobs in ways that make them more attractive. 16 options. 27
However, there is some debate, as a recent report indicates
that a prevalent dynamic in the job market is one where Both the U.S. House and Senate are currently working
many job candidates have more education than their job toward reauthorizing HEA. In the Senate, Chairman Harkin
requires. 17 (D-IA) of the Senate HELP Committee has circulated a
comprehensive discussion draft of a bill that would amend
Are There Alternatives? the current HEA in an attempt to address rising student debt,
among other provisions. 28 In the House, Chairman Kline (R-
Our current system of higher education relies on the “credit MN) of the Education and Workforce Committee has
hour,” judging academic progress based on time spent in the shepherded three much narrower, bipartisan bills through
classroom. An alternative approach gaining prominence is the House that would provide more information to students
competency-based education, 18 where a student advances deciding on postsecondary education. 29 The comprehensive
through curriculum based on her ability to show, though approach of the Senate and the bill-by-bill approach of the
assessments, that she has mastered skills and knowledge House will have to be reconciled in 2015.
about a particular topic. 19 Some of the primary challenges
facing competency-based learning in the United States When elected in 2009, the Obama administration set a goal
include gaining acceptance of the model, choosing the best of increasing post-secondary degree attainment from 40
method of assessment, identifying what data we need to percent to 60 percent, adding an additional 10 million
analyze these programs, and working with accreditors and Americans ages 25 to 34 with an associate’s or bachelor’s
the government to gain accreditation and financial aid, degree. 30 But associate’s degree attainment has increased
respectively. 20 just 1.5 percent increase for the over-18 population since
2009, and degree attainment among adults aged 25 to 34 rose
Another technological departure from the traditional form of less than one percent from 2009-2011. 31 However, the
higher education is the proliferation of online educational President’s goal of achieving five million additional
courses and massive online open courses (MOOCs). These community college graduates seems on track, as schools
courses offer flexible scheduling, are free or low cost, and conferred 2.5 million more associate’s degrees from 2009-
offer ease of communication with faculty and fellow students 2012. 32
MILLENNIALS
The rise of proprietary higher education companies has agrees that students will use it. 38 It remains unclear how
created an additional set of policy issues. Between 2000 and effective the rating system will be, or if the availability of
2009, full-time enrollment in for-profit degree-granting federal financial aid to institutions will be tied to it.
institutions increased from 366,000 to 1.5 million. 33 However,
bachelor’s degree completion rates are much lower in the The Challenges to Address
for-profit sector than in other non-profit higher education
sectors. 34 Additionally, the average cost of a two-year The scale and scope of our higher education system presents
associate’s degree is more than four times higher than the a wide range of issues to address, including how students
average of the same degree at a comparable community access and afford an education, as well as how the system
college, which leads to for-profit students graduating with creates pathways to success. In the coming years, all
more debt than their non-profit counterparts. 35 The Obama stakeholders must address key issues around college access,
administration promulgated “gainful employment” affordability, oversight and accountability, a lack of data,
regulations in 2010 to protect students from institutions that and how to increase opportunities for “non-traditional”
saddle their students with the most debt and the worst students.
employment prospects, but federal courts struck down those
regulations in 2011. 36 In response, the Obama administration Access and Affordability
is in the process of developing new regulations.
Maintaining student access to institutions is paramount to
There is also a movement to address complexity within ensuring that all Americans can gain the necessary skills and
financial aid. With all of the existing tools to help students education they need. The rising cost of college and growing
and families compare intuitions and learn more about their complexity of the federal financial aid system are barriers to
financial aid options, there is still consensus that young access. One program that directly addresses college cost is
people do not receive the best information about their the Pell Grant program. It is essential to maintaining access
options in the right format at the right time. The Obama because it funds grants for lower-income students and
administration has recently proposed a college rating system families who might not be able to afford college otherwise.
to make it easier for students and families to make informed However, the Pell Grant program faced a shortfall in 2010, 39
decisions about postsecondary education. The goal of the and may face a short fall in Fiscal Year 2017. 40 Additionally,
rating system is to increase institutional accountability and simplifying the federal financial aid system, including the
help control the rising cost of college. But the rating system FAFSA, is an important measure to ensure that those seeking
has faced some opposition: a bipartisan resolution was postsecondary education can secure the funds to do so.
introduced in June 2014 opposing the rating system, 37 and Federal incentives to states that encourage education
only 2 percent of the current higher education community spending on state financial aid programs that are valuable
MILLENNIALS RISING
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3
supplementary tools to the federal financial aid system are record system would allow anonymized data to be
also needed to preserve access. disaggregated to the benefit of the public making important
financial decisions, as well as reducing compliance costs for
As tuition continues to rise unsustainably, we must address institutions and connecting existing governmental
the issues of college cost and student debt. Congress and the information systems, reducing bureaucracy. 48 Better-
Obama administration must find a way to sustainably fund targeted and consumer-tested financial aid counseling
Pell grants, deal with skyrocketing tuition, and address the would also increase financial literacy among those who
growing body of student debt. The federal government will finance their education by taking out student loans.
also “earn” $127 billion over the next ten years by financing
student loans. 41 Where will these dollars go? Will the “Non-Traditional” Students
government reinvest these funds in students?
Our current postsecondary system was set up to primarily
Oversight and Accountability accommodate first-time, full-time students entering four-
year colleges directly out of high school. This disadvantages
There is growing concern about how to improve student students who do not go straight from a secondary education
outcomes at various institution types. Initiatives like to a postsecondary education. But in reality, adults aged 24
performance-based funding at the state level and tying and older comprised 43 percent of all college students in
financial aid and other funding to student success at the 2001, and part-time students outnumber full-time students
federal level are two examples. The Obama administration’s 62 percent to 38 percent. 49 These “non-traditional” learners
rating system is an example of an oversight and typically have limited available time, fewer resources to
accountability initiative. Institutions are very concerned draw on, and other priorities to balance beyond academics. 50
about the impact of the ratings system, 42 while education A number of reforms are worth considering, including not
advocates want it to serve a variety of purposes like requiring constant refiling of FAFSA, awarding grant aid as
institutional accountability and information for consumers. an account that can be drawn upon as a person moves in and
It remains to be seen if the rating system will be used as just out of postsecondary education, having colleges be more
an informational tool or something to hold poorly proactive in requiring students to develop degree plans to
performing institutions accountable. avoid accruing credits that do not yield a degree, and
experimenting with a Pell “bonus” for students who hit
Additional challenges include reforming accreditation, certain credit momentum points. All of these proactive steps
which recently has come under fire for being a rubber-stamp might help re-shape the American education system to
that protects the interests of accrediting agencies’ accommodate and assist the large and growing numbers of
membership over students and taxpayers. 43 Finally, non-traditional students pursuing post-secondary education
policymakers will have to decide if they want to extend more and training. 51
consumer protections to student loan borrowers, including
helping the Consumer Financial Protection Bureau assist Implementing these and other changes that explore
students in getting refunds and forgiveness from student alternative models to the traditional instruction of higher
loan servicing firms, 44 as well as the ability to discharge education and the policies that govern access to and
student loans in bankruptcy, upon the death of the primary affordability of institutions of higher education are necessary
borrower, or if the borrower can show medical distress. 45 to establishing a system that provides a pathway for
economic advancement for students and meets the labor
Lack of Data needs of a dynamic economy.
With the rise in tuition and growing complexity within

federal financial aid, it is now more important than ever to
convey accurate, helpful information to students and
Jennifer Wang is Policy Director and Reid Setzer is a Legal
families about college and how to pay for it. Students often
Fellow at Young Invincibles.
lack the tools they need to make the right decisions about
college and whether their investment will pay off. One
problem is the lack of information about outcomes, which
Endnotes
prevents students, families, institutions, and policymakers
1
from learning the answers to important questions about the David Leonhart, “Is College Worth It? Clearly, New Data
value of higher education. 46 Information such as how easily Say,” The New York Times, May 27, 2014.
graduates from different institutions find jobs and if they will
2
earn enough to pay off their student debt is unavailable John F. Ebersole, Jeanne Contardo, and Lisa Daniels,
despite the fact that many institutions and government “Higher education report card for the president,” The Hill,
agencies already have the information. 47 Creating a student August 14, 2014.
MILLENNIALS
3 19
National Center for Education Statistics (NCES), “Tuition Ibid.
costs of colleges and universities,” U.S. Department of
Education. 20
Betsy Prueter, “Sharpening Our Focus on Learning: The
Rise of Competency-Based Approaches to Degree
4
Michelle Jamrisko and Ilan Kolet, “Cost of College Degree in Completion,” Washington, D.C.: New America Foundation,
U.S. Soars 12 Fold: Chart of the Day,” Bloomberg News, March 14, 2014.
August 15, 2014.
21
David Skorton and Glenn Altschuler, “MOOCs: A College
5
Claudio Sanchez, “How the Cost of College Went From Education Online?” Forbes, January 28, 2013.
Affordable To Sky-High,” National Public Radio, March 18,
22
2014. Thomas Perez, “For a modern Labor Day: American
apprenticeships,” The Star Press, August 30, 2014.
6
Phil Oliff et al., “Recent Deep State Higher Education Cuts
23
May Hard Students and the Economy for Years to Come,” Reid Setzer, “An Alternative to Debt: Apprenticeships,”
Center on Budget and Policy Priorities, March 19, 2013. Young Invincibles, February 5, 2014.
7 24
Allie Bidwell, “Colleges Get More State Funds, but Rely on “Ready to Work: Job-Driven Training and American
Tuition,” U.S. News and World Report, April 21, 2014. Opportunity,” The White House, July 2014.
8
“The Price of College,” Washington, D.C.: New America 25
“What You Need to Know About Reauthorization,” The
Foundation, accessed September 18, 2014. Chronicle of Higher Education, September 19, 2013.
9 26
Ibid. Lamar Alexander and Michael Bennet, “An Answer on a
Postcard: Simplifying FAFSA Will Get More Kids Into
10
Jasmine Evans, “The Rising Cost of Tuition Surpasses the College,” The New York Times, June 18, 2014.
Rate of Inflation,” Diverse, February 11, 2013.
27
11
Colin Seeberger, “We Can’t Afford To Leave Money On The Chronicle of Higher Education, September 19, 2013.
Table,” Empower Magazine, August 13, 2014.
28
“With Focus on Affordability and Access, HELP Chairman
12
Young Invincibles et al., Automatic for the Borrower: How Harkin Unveils Discussion Draft to Reauthorize Higher
Repayment Based on Income Can Reduce Loan Defaults and Education Act,” US Senate Committee on Health, Education,
Manage Risk, Washington, D.C., 2014, p. 26. Labor, and Pensions, June 25, 2014.
13
Lumina Foundation and Gallup, What American Needs To 29
Lauren Camera, “House Clears Three Bipartisan Higher
Know About Higher Education Redesign, Washington, D.C.: Education Bills,” Education Week, July 25, 2014.
2014, p. 6.
30
John F. Ebersole, Jeanne Contardo, and Lisa Daniels,
14
“The Rising Cost of Not Going to College,” Pew Research “Higher education report card for the president,” The Hill,
Center, February 11, 2014. August 14, 2014.
15
Accenture and The Manufacturing Institute, Out of 31
Ibid.
Inventory: Skills Shortage Threatens Growth for US
Manufacturing, Washington, D.C., 2014. 32
Ibid.
16 33
Katherine Peralta, “U.S. Manufacturers Say Skills Gap Sandy Baum and Kathleen Layea, “Trends in For-Profit
Could Compromise Competitiveness,” U.S. News and World Postsecondary Education: Enrollment, Prices, Student Aid
Report, May 7, 2014. and Outcomes,” College Board, 2011, p. 1.
Peter Cappelli, Skill Gaps, Skill Shortages, and Skill

17 34
Ibid.
Mismatches: Evidence for the U.S., Cambridge, MA, 2014.
35
Suevon Lee, “The For-Profit Higher Education Industry, By
18
“Prior Learning and Competency-Based Education,” the Numbers,” ProPublica, August 9, 2014.
Washington, D.C.: New America Foundation, n.d..

36
See Danny Vinik, “Obama Is Cracking Down on For-Profit
Colleges-And Liberals Should Applaud Him for It,” New
Republic, March 17, 2014.
37
Michael Stratford, “Obama Defends College Ratings,”
Inside Higher Ed, June 11, 2014.
38
John F. Ebersole, Jeanne Contardo, and Lisa Daniels,
“Higher education report card for the president,” The Hill,
August 14, 2014.
39
Haley Chitty, “Saving Pell,” University Business, February
2012.
40
Christy Guillon, “Pell Grant Shortfall Delayed to FY2017,”
University of Washington, February 5, 2014.
41
Shahien Nasiripour, “Student Loan Borrowers’ Costs To
Jump As Education Department Reaps Huge Profit,”
Huffington Post, April 14, 2014.
42
Michael D. Shear, “Colleges Rattled As Obama Presses
Rating System,” The New York Times, May 25, 2014.
43
Allie Bidwell, “Report: Congress Should Reform College
Accreditation to Save Students, Taxpayers,” U.S. News and
World Report, September 30, 2013.
44
See, e.g., Business Wire, “The Consumer Financial
Protection Bureau Proving it’s the Right Agency For The Job
When Regulation Student Loans,” MarketWatch, August 20,
2014.
45
See, e.g., Katy Stech, “Bill Would Let ‘Medically Distressed’
Case Off Student Loans,” Wall Street Journal, August 1, 2014.
46
See Amy Laitinen, Clare McCann, New America
Foundation, “College Blackout: How the Higher Education
Lobby Fought to Keep Students in the Dark,” Washington,
D.C.: New America Foundation, March 11, 2014.
47
Ibid.
48
Ibid.
49
Jobs for the Future, Eduventures, and FutureWorks, Adult
Learners in Higher Education: Barriers to Success and
Strategies to Improve Results, Washington, D.C., 2007, p. 11.
50
Ben Miller, “Breaking With Tradition: Making Federal
Grant Aid Work for Today’s Students,” Washington, D.C.:
New America Foundation, March 2014, pp. 7-9.
51
Ibid., pp. 12-16.

SHIFTING WORK AND FAMILY
TRENDS AMONG MILLENNIALS Andrea Flynn
Members of the Millennial generation in the United States Rising Low-Wage Employment
face rapidly changing—and at times contradictory—socio-
economic circumstances. They are generally highly The majority (50.4 percent) of U.S. minimum-wage workers
educated, but are saddled with historic amounts of student are between the ages 16 to 24, with 24 percent between ages
debt and face daunting levels of un- and under-employment. 16 to 19. 5 However, a growing percentage of minimum-wage
They care deeply about employment benefits at a time when earners are over the age of 30, which raises concern that
paid sick and family leave are still distant realities and labor Millennials coming into adulthood in a sluggish economy are
organizing and hard-won workplace protections are being not going to simply age out of low-wage work. This concern
eroded. Many have a desire to delay childbearing because of is especially acute for women, who—despite making up less
concerns about economic security, but also have an unmet than half the U.S. work—make up two-thirds of the country’s
need for affordable family planning options. Over the past 20 million low-wage workers. 6 Even though young men and
decade we have seen changes in the economy, work, and women (between the ages of 16-24) comprise the same share
class status drive Millennial views on marriage and family of the U.S. workforce (6 percent), young women’s
formation, while at the same time attitudes about family representation in the low-wage workforce is 1.4 times greater
responsibilities, work-life balance, and employment benefits than that of young men’s. 7
are shifting the way Millennials are engaging in the
workforce. The economic circumstances of U.S. mothers are particularly
challenging. Mothers and fathers make up a similar share of
Current Conditions the overall workforce, but mothers represent a much larger
share of low-wage workers (21 percent compared to 6
The Great Recession affected U.S. workers of all ages, but it percent). Nearly one in five working mothers with children
had a disproportionate impact on the Millennial generation. under three is employed in low-wage jobs and a third of
Unemployment rates among this cohort remain high at 15.2 them live in poverty. And in every state, at least six in ten
percent for those ages 18 to 29, while underemployment rates low-wage workers are women, even though women make up
are even higher at 40 percent. 1 The ranks of unemployed half or less of the overall workforce in every state. 8
Millennials now total 4.6 million, nearly 40 percent of all
U.S. unemployed workers. 2 The recovery from the 2008 recession was particularly hard
on women. While 1.6 million jobs were added to the private
The Recession has dramatically shifted how Millennials sector over the course of the recovery, only one in seven of
define their class standing. A 2014 Pew Research poll found those new jobs went to women, and 35 percent of women’s
that only 42 percent of Millennials now identify themselves net job gains during that time were in jobs that paid at or
as middle class (down from 53 percent in 2008), and 46 below the minimum wage (compared to 20 percent for
percent describe themselves as lower or lower-middle class, men). 9, 10
up from 25 percent in 2008. 3 Two-thirds of recent bachelor’s
degree recipients have outstanding loans and the average Despite the difficult socio-economic circumstances many
debt is $27,000, up from only half of recent graduates and an find themselves in, Millennials are quite optimistic about
average of $15,000 of debt 20 years ago. 4 Navigating the their future. Of those who are currently employed, only 33
post-recession economy has changed the way Millennials percent say they now earn enough to lead the kind of life
engage in the workforce, pushing more workers into low- they want, but 51 percent say they will be able to earn
paid work and others into part-time, temporary, and contract enough in the future. Among those who are unemployed, 29
work. percent say they now earn enough and 59 percent say will be
able to earn enough in the future. 11

70 Millennial (2013)
60
Gen X (1997)
50
Boomer (1980)
40
Silent (1960)
30
20
10
Rising Interest in Employment Benefits organizing and union membership. Today, unionized
workers make up only 11 percent of the workforce, the lowest
Benefits are increasingly important factor in determining level in 97 years. Over the past 40 years the proportion of
where U.S. men and women choose to work. In Metlife’s organized workers has plummeted, eroding previous
annual survey of 1,200 employees, 43 percent of respondents protections for working families. The wages of workers have
in 2013 reported that benefits were a key factor in why they declined while the wealthy enjoy an increasing percentage of
chose their employer. That’s up from 28 percent in overall income. In the 1960s and 1970s, workers staged an
2012. 12 “Millennials care deeply about benefits. More than average of 286 strikes a year. Since 2000 that has declined to
any previous generation they have student loans to pay, 20 strikes a year. 15 As Richard Kirsh points out, “With only 7
family members to support, and beliefs that social security percent of private sector workers in unions, the labor
won’t cover their needs in the future.” movement can no longer play an effective role in raising
workers’ wages throughout the economy.” 16 More generally,
Nearly a third of the U.S. labor force is comprised of the declining prevalence of collective bargaining and union
individuals who are working as freelancers, independent membership reflect a general weakening of social
contractors, and temp workers. Experts predict that by the protections, such as policies that provide workers paid time
end of the decade that figure will rise to 40 percent, roughly off for sickness, caregiving, or vacation.
60 million people. Millennials will account for significant
portion of this pool. Research has shown that 70 percent of Policy Landscape
young professionals worldwide aspire to be their own boss,
and that nearly nine in ten workers affiliated with The trends in work that have unfolded over recent decades
Freelancers Union report they would not choose to return to have driven (and in some ways been driven by) the changing
traditional work. 13 This is not surprising, given that almost views that younger generations have about marriage, family,
half of Millennials prioritize job flexibility over pay. “Yes, the and the desired balance between work and family
comfort of a regular paycheck is gone, but it's replaced by obligations.
other, arguably greater comforts: a flexible schedule, the
sense of ownership and pride that comes with being one's Declines in Marriage
own boss, the ability to prioritize health and wellness in
ways that are incompatible with traditional employment For individuals between the ages of 18 and 29, the marriage
structures.” 14 rate has dropped from 59 percent in 1960 to just 20 percent
today. 17 There are fewer people getting married today, and
Declining Unions and Collective Bargaining those who are marrying are doing so later than any other
generation in history. Recent Pew Research Center data
Millennials are entering a workforce that has been shows that in 2012, one in five adults over the age of 25 has
dramatically altered by the changing landscape of labor never been married (compared to one in ten adults in 1960),
28
2
and that the median age at first marriage is now 27 for “The overcriminalization and disproportionate
women and 29 for men (compared to 20 and 23 in 1960). 18 incarceration of young black men early in their
adult life result in a sizable segment of the young
The downward trend in marriage is driven by a number of male population in low-income, minority
factors: higher rates of co-habitation; a declining belief in communities being marginalized in the labor force,
the social value of marriage; concerns about divorce; and an with little prospect of earning a family-sustaining
increasing belief that financial security is a pre-requisite for wage. This ultimately poses considerable barriers to
marriage. 19 This is especially true for women, 78 percent of successful family formation and positive civic
whom say that it is very important for their future partner to engagement. This overcriminalization poses
have a steady job. Only 46 percent of men, however, have employment barriers to both ex-offenders and non-
concerns about their future spouse’s job. 20 offenders. Researchers have documented that
employers, when faced with applicants from an
Complicating marriage prospects are the fact that the ratio of over-criminalized population, minimize their
employed, single men to women is shrinking. In 1960 there perceived risk by engaging in ‘statistical
were 139 young, never-married, employed men per every 100 discrimination’—that is considering neither
women (between the ages of 25-34). In 2012 there were just offenders nor non-offenders from that population
91, and for some racial groups that gap is more significant. for employment.” 23
As The Economist recently reported, young, never-married,
black women outnumber young, never-married, black men In addition to these multiple factors driving women’s
with jobs by two-to-one. 21 “This helps explain why although decisions to delay marriage, there is also some evidence to
African-Americans are more likely than other races to say show that there might be economic benefits for women who
they value marriage, only 26 percent of black women are marry later. College-educated women who married after the
actually married, compared with 51 percent of whites.” 22 It is age 30 have an annual personal income of $50,415,
difficult to talk about the un- and under-employment of compared with $32,263 for college-educated women of the
black men without acknowledging the role that incarceration same age who marry before the age of 20. That is a 56 percent
plays in shaping the socio-economic status of many black difference. 24 In contrast, men who marry in their 20s make
families. As Linda Harris of the Center for Law and Social more than men who wait to marry in their 30s.
Policy has written:
Regardless of their ambivalence of the social importance of
marriage, still nearly 70 percent of Millennials say they
MILLENNIALS RISING
RISING | 2014 | 2014
| @NEWAMERICA 29
3
would like to marry but feel their economic foundation is not afford family planning on their own has only grown in recent
strong enough to do so. 25 The changing marriage landscape years. Between 2000 and 2012, the number of U.S. women in
helps to explain some of the shifts we have seen childbearing need of publicly funded family planning services increased
trends in recent years. by 22 percent, or 3.5 million women. The Affordable Care
Act’s expanded coverage of contraceptive care will meet the
Delayed Childbearing needs of some of these women, but many—especially those
in states that are not expanding Medicaid—will fall through
Today nearly half of all births to Millennial women are non- the cracks and continue to rely on publicly funded clinics
marital, compared to only 20 percent among older women, that provide low- or no-cost contraceptive
trends that have grown more divergent in recent decades services. 30 Unfortunately, regulations and cuts to public
and are particularly pronounced among women with lower clinics, along with the challenges like the Supreme Court’s
socioeconomic status. For college-educated women with Hobby Lobby decision have made it more difficult for those
higher incomes the average age of first birth (30) has risen who need and want family planning services to access
along with the average age of marriage, while for women them. 31
without a college degree the average age of first birth has not
risen along with the average age of marriage. Women of Many policymakers blame the rising proportion of births to
higher socioeconomic backgrounds are predominantly unmarried women—particularly young women—for cycles of
having children later and in married relationships, while poverty and inequality. 32 It is true that nearly half of children
women of lower socioeconomic backgrounds continue to living in single-mother homes are living in poverty,
have children earlier in their 20s and are increasingly doing compared with 11 percent of children living with two married
so out of wedlock. 26 parents. 33 But research has shown that that poverty itself is
the largest predictor of future socioeconomic status, and that
When evaluating trends in childbearing, women’s ability to unintended, teen, and out-of-wedlock births actually change
plan the timing and size of their families is an important the socioeconomic status of poor women very little. 34
factor to take into consideration. The ability of women to
control their pregnancies contributes to the increasing divide Additional studies confirm that providing family planning
in opportunities, circumstances, and health outcomes services at no cost, including long-acting methods and
among women of different socioeconomic backgrounds. Half emergency contraception, results in more effective
of all pregnancies in the U.S. remain unplanned or mistimed contraceptive use, decreased rates of unintended pregnancy
(a rate higher than most developed countries), with rates by nearly 30 percent, and significant declines in abortion
among poor women and women of color significantly higher rates.
than among wealthier white women. 27
Increasing Costs of Childcare
Family planning is often regarded as strictly a matter of
“reproductive health,” but it is also an economic security Many women who do decide to become parents find
issue for women and their families. The majority of women in themselves negotiating the high costs of childcare with low
a recent Guttacher Institute study reported that birth control wages. Many workers spend 30 percent or more of their
enables them to support themselves financially (56 percent), income on childcare. A study from the National Women’s
complete their education (51 percent), and get or keep a job Law Center (NWLC) illustrates the numerous issues facing
(50 percent). 28 The ability to determine the size and timing of working mothers: needing childcare during night and
a family is critical to women’s financial wellbeing, and at the weekend hours (when providers are more expensive or less
same time economic insecurity causes many women to want reliable); a lack of information and understanding about
to delay childbearing. A 2009 Guttmacher Institute study publicly funded early-education and care programs;
found that 44 percent of women (and 52 percent of women language barriers; unpredictable and last-minute schedules;
with lower incomes) wanted to delay or limit childbearing in no paid sick or vacation days; a cost of childcare that far
the wake of the 2008 recession. outweighs income for many women.
The cost of contraception has made such planning hard for Unsurprisingly, child rearing carries a more significant cost
many women. During the 2008 recession and its aftermath, 8 for the careers of women than of men. 35 Among mothers and
percent of women dispensed with birth control all together fathers who have reduced work hours or taken a significant
and nearly 20 percent used it inconsistently as a way to save time away from work to care for a family members, more
money. 29 And the population of women who want but cannot
MILLENNIALS
3
than a third—though glad they did it—report that it hurt their Pew Research Center, “Millennials in Adulthood: Detached
career (compared to 18 percent of fathers). 36 from Institutions, Networked with Friends,” 2014.
The Challenges to Address 4

Ibid.
The current political environment presents a number of 5

Drew DeSilver, “Who makes minimum wage?” Washington,
challenges to overcoming the socioeconomic obstacles that D.C.: Pew Research Center, 2014.
Millennials face in balancing their work and family lives, but
it also presents some opportunities. Too many years of 6
National Women’s Law Center, “Underpaid & Overloaded:
stagnant wages have exacerbated inequality, but grassroots Women in Low-Wage Jobs,” 2014.
and political campaigns like the one that raised Seattle's
minimum wage to $15/hour show promise, and recent polls 7
Young women’s share of the low-wage workforce is 18.3
show that the majority of Americans approve of similar percent, and young men’s is 13.1 percent.
increases. 37,38,39 Declines in union membership and labor
organizing have dismantled hard-won protections for 8
Helen Blank, Karen Schulman, and Lauren Frohlich,
workers, but efforts by the National Domestic Workers “Nearly One in Five Working Mothers of Very Young
Alliance (NDWA), the Coalition of Immokalee Workers, and Children Work in Low-Wage Jobs,” Washington, D.C.:
the New York Taxi Workers Alliance (NYTWA) have provided National Women’s Law Center, 2014.
innovative solutions that are protecting workers rights and
guaranteeing a floor of wellbeing. 40 Affordable childcare and 9
Mimi Abramowitz, “The Feminization of Austerity,” New
quality early education remain a distant reality for many, but Labor Forum 21(1): 32-41, 2012.
New York City’s recently launched Universal Pre-K program
has garnered support at all levels and can be a model 10
National Women’s Law Center 2014.
replicated by other cities and states. A stubborn wage gap
persists between men and women, but new federal efforts 11
Pew Research Center, “Millennials in Adulthood,” 2014.
have directed unprecedented attention and political capital
to the issue. 12
Alyson Krueger, “How To Create A Benefits Plan That
Appeals To The Young And Cool,” Forbes, March 28, 2014.
At the same time, however, we have seen unprecedented
rollbacks in voting rights, reproductive rights, and labor 13
Sara Horowitz, “America, say goodbye to the Era of Big
rights. Attacks on the Affordable Care Act, fair pay Work,” Los Angeles Times, August 25, 2014.
legislation, financial regulations, and student loan reform
may weaken the policy supports in place that play a 14
Ibid.
supportive role in promoting work and family formation
among Millennials. We will need to harness the creativity, 15
Richard Kirsch, “The Future of Work in America: Policies to
energy, passion, and political power of the Millennial Empower American Workers and Secure Prosperity for All,”
generation to overcome these significant barriers to health, New York: Roosevelt Institute, 2014.
financial security, and overall wellbeing.
16
Ibid.
Andrea Flynn is a Fellow at the Roosevelt Institute. 17

Neil Howe, “Don't Worry, America: Millennials Still Want
To Marry,” Forbes, March 25, 2014.
Endnotes
18
1 Wendy Wang and Kim Parker, “Record Share of Americans
Lindsay Van Thoen, “3 Ways Millennials Are
Have Never Married,” Washington, D.C.: Pew Research
Revolutionizing the World of Work,” Freelancers Union,
Center, 2014.
2013.
19
2 Data shows that while individuals in this age group do
Quentin Fottrell, “40% of unemployed workers are
believe that individuals who plan to be together for the long
millennials,” MarketWatch, July 7, 2014.
term should get married, more than two-thirds believe that
MILLENNIALS
MILLENNIALS RISING
| @NEWAMERICA | 2014 | 2014 5
31
34
“society is just as well off if people have priorities other than Frank Furstenberg, Destinies of the Disadvantaged: The
marriage and children.” Politics of Teenage Childbearing, New York: Russell Sage
Foundation, 2007.
20
Wang and Parker 2014.
35
Women make myriad sacrifices to take care of children
21
“Got to have a J.O.B.: Women still most want to marry men and/or family members: 42 percent reduce their work hours
with money,” The Economist, September 27, 2014. (compared to 28 percent of fathers; 38 percent have taken a
significant amount of time off (compared to 24 percent of
22
Ibid. fathers); and 27 percent have quit their jobs (compared to 10
percent of fathers).
23
Linda Harris, “Feel the Heat: The Unrelenting Challenge of
36
Young Black Male Unemployment,” Washington, D.C.: Pew Research Center, “10 Findings about Women in the
CLASP, 2013. Workplace,” 2013.
24 37
Eleanor Barkhorn, “Getting Married Later Is Great for Steven Greenhouse, “Our Economic Pickle,” The New York
College-Educated Women,” The Atlantic, March 15, 2013. Times, January 12, 2013.
25 38
Pew Research Center, “Millennials in Adulthood,” 2014. Andrew Dugan, “Most Americans for Raising Minimum
Wage: Tying minimum-wage increases to inflation is slightly
26
Barkhorn 2013. less popular,” Washington, D.C.: Gallup, 2013.
27 39
“Unintended Pregnancy in the United States,” Fact Sheet, Erik Sherman, “Majority Of Employers Say Raise The
New York: Guttmacher Institute, 2013. Minimum Wage,” Forbes, September 25, 2014.
28 40
Jennifer J. Frost and Laura Duberstein Lindberg, “Reasons As Richard Kirsch explains in his 2014 paper “Polices to
for Using Contraception: Perspectives of US Women Seeking Empower American Workers and Ensure Prosperity for All,”
Care at Specialized Family Planning Clinics,” Contraception these three organizations are just some of the many that
87(4), 2013. have stepped in to fill the gap created by weak labor laws
and declines in union membership. NDWA has organized to
29
Ellen Chesler and Andrea Flynn, “Breaking the Cycle of pass state-level legislation that has extended labor
Poverty: Expanding Access to Family Planning,” New York: protections to domestic workers, and it helps employers
Roosevelt Institute, 2014. follow wage and benefit laws, and to connect domestic
workers with “fair and responsible” employers. The Coalition
30
Andrea Flynn, “The Title X Factor: Why the Health of of Immokalee workers organizes tomato pickers in Florida
America’s Women Depends on More Funding for Family and organizes consumers to pressure supermarkets and fast
Planning,” New York: Roosevelt Institute, 2013. food chains to pay more for tomatoes and to require growers
to use increased earning to guarantee better pay for their
31
Andrea Flynn, “Abortion Restrictions Are Harming workers. The NYTWA serves as a de facto bargaining agent,
Women's Health and Human Rights in Texas,” Blog, New working with the City’s Taxi and Limousine Commission to
York: Roosevelt Institute, November 25, 2013. improve wages and benefits for workers.
32
The proportion of births to unmarried women in the U.S.
has grown by 46 percent over the past 20 years.
33
Kristi Williams, “Promoting marriage among single
mothers: An ineffective weapon in the war on poverty?”
Coral Gables, Florida: Council on Contemporary Families,
2014.

A LIFE-CYCLE
AND GENERATIONAL PERSPECTIVE
ON THE WEALTH AND INCOME OF
MILLENNIALS William R. Emmons
and Ray Boshara
Young adulthood is the life stage when the greatest increases The economic and financial setbacks suffered by young
in income and wealth typically occur, yet entering into this adults during and after the recession—especially among
period during the Great Recession has put Millennials on a those of color and those without college degrees—are
different trajectory. As a result, this generation will need to particularly discouraging because members of the Millennial
make very large gains in the years ahead to compensate for generation (born 1981-2000) had been doing a bit better at
these shortfalls. comparable ages than their immediate predecessors, the
members of Generation X (born 1965-80). Prospects have
Understanding the dynamics of how the recession has dimmed for getting back on the steep upward trajectories of
impaired the financial outlook of Millennials, such as income growth and wealth accumulation that are
identifying how far behind they are compared to previous characteristic of people in their 30s and 40s and which are
generations of young adults, the impact of the recession on essential for building life-long economic security.
their current wealth holdings and earning potential, and the
pace at which they’re recovering, is essential to developing A life-cycle perspective on young adults
appropriate policy interventions that can put them back on
track. Many aspects of our economic and financial lives are shaped
principally by our stage in life. 2 Income typically rises
Current Conditions rapidly during the first few decades of one’s working life,
peaks in late middle age, and then declines at retirement.
The Great Recession exacted an enormous toll on the Wealth usually begins at a very low level—and can even be
incomes and wealth of most families. The real income of the negative if student loans are needed to complete schooling—
median U.S. family was 12.1 percent lower in 2013 than in and grows at an increasing rate during the working lifetime.
2007, falling from $53,114 to $46,668, both in 2013 inflation- In contrast to income, many families’ wealth peaks at a
adjusted dollars. 1 Real median wealth among all families somewhat later age and declines only slowly after retirement
declined 40.1 percent during that period, falling from or, in the case of wealthy families, may keep rising until
$135,858 to $81,400. death.
As bad as it was in the aggregate statistics, younger adults From a life-cycle perspective, young adults fared poorly
generally fared even worse. This is true whether one focuses during the recession and its aftermath. The median income
on young adulthood as a stage in the life cycle through of a family headed by someone under 40 was 88 percent of
which everyone passes or, alternatively, if we track groups of the overall median income in 2004 and reached 91 percent in
individuals born at a certain time using a generational 2007; but the median income of young adults was only 87
framework. Moreover, young adults and families with less percent of the overall median in 2013. 3 This remains below
education and those who are African-American or Hispanic the 88-96 percent range seen during the 1989-2004 period.
typically suffered more than their better-educated and white
or Asian contemporaries. Meanwhile, the median wealth of a family headed by
someone under 40 was 22 percent of the overall median in

2004, before falling to 16 percent in 2007 as the housing Millennials’ long-term economic and financial well-being
bubble began to burst. While the median wealth of people how long it takes to get back on track—or whether they ever
under 40 recovered to 18 percent of the overall median by will catch up.
2013, this remains far below levels reached during 1989-
2004, when it ranged from 22 to 30 percent. The Survey of Consumer Finances, conducted by the Federal
Reserve every three years, offers a valuable snapshot of the
Thus, families and individuals who were under 40 during family balance sheet. 5 The oldest cohort of Millennials, born
and after the recession generally have experienced during the 1981-83 period, was surveyed in 2004 when they
historically low incomes and wealth. Young adults without were ages 21-23; in 2007 when they were 24-26 years old; in
college degrees and young African-American and Hispanics 2010 when they were 27-29 years old; and in 2013 when they
likewise suffered greater than average income and wealth were 30-32 years old. Thus, the survey permits direct
shocks. comparisons of income, wealth, and debt of a specific cohort
over its observed life cycle to other cohorts.
A generational perspective: Sizing up the Millennials
The Income and Wealth of Millennials
Economic, financial, and sociological research on the
Millennial generation as young adults has just begun. 4 Income at ages 21-23
Millennials appeared to be doing relatively well before the
recession compared to their predecessors. The recession hit The median real family income among the 1981-83 cohort of
the typical Millennial hard, however, pushing median Millennials at ages 21-23 (in 2004) was $21,530. This was
somewhat above the median among all the earlier-born
income and wealth levels among people born in the 1980s cohorts shown (born 1966-80 and observed during the 1989-
and early 1990s below the trajectories traced out by people 2001 period), which was $20,208. The 1984-86 cohort of
born in the 1960s and 1970s when they were the same age. Millennials also had median real income (in 2007) that was
Young adulthood is the period when income and wealth higher than the 1966-80 median at that age, at $24,248. The
typically grows most rapidly, so it matters for the 1987-89 and 1990-92 cohorts, however, had lower median
34
2
Overall
75 or over
65–74
55–64
45–54
35–44
Under 35
-50 -40 -30 -20 -10 0 10 20 30 40
real incomes, of $19,609 and $16,233, respectively. These Income at ages 30-32
figures were observed in 2010 and 2013, respectively, during
the weak post-recession economy. The oldest Millennial cohort (born 1981-83) was 30-32 in
2013. The median real income of this cohort was only
Income at ages 24-26 $47,683, some $4,056 below the median income of the
cohorts born between 1957 and 1980.
The median real family income among the 1981-83 cohort at
ages 24-26 (in 2007), $39,258, likewise was higher than the The impact of the Great Recession on the median incomes of
median among earlier cohorts at that age ($31,489), here Millennials is clearly evident. In general, Millennial cohorts
spanning birth years 1963-80. The 1984-86 cohort also had received higher incomes than earlier-born cohorts at the
higher median income at ages 24-26 (in 2010) than cohorts same ages through 2007, but mostly fell behind the
born during 1968-80, at $35,950. However, the 1987-89 benchmarks set by older cohorts as a result of the recession.
cohort fell short of the 1963-80 median, at $30,436, due to In the case of the oldest Millennial cohort (1981-83), the
their reaching this age in 2013. relative slide was dramatic—from about 125 percent of the
earlier-born median at ages 24-26 to about 92 percent of the
Income at ages 27-29 median at ages 30-32. The 1984-86 cohort fell from 20 percent
above to 13.5 percent below the older groups’ median. The
The median real family income among the 1981-83 cohort at youngest Millennial cohorts considered here—born 1987-89
ages 27-29 (in 2010), was $44,665. This was $112 higher than and 1990-92—entered adulthood during the recession and its
the median among earlier-born cohorts at that age, who were aftermath and began their working lives earning
born during the 1960-80 period. The 1984-86 cohort’s median significantly less than Baby Boomers, members of
real income at ages 27-29 was only $38,552, again influenced Generation X, and their older Millennial counterparts.
by economic conditions in 2013.
The income shortfalls of Millennials are particularly
noteworthy because they are the best-educated generation
ever. Whether any of the Millennial cohorts can catch up to
MILLENNIALS RISING
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| @NEWAMERICA 35
3
the income trajectories achieved by earlier generations is Can Millennials Catch Up?
uncertain.
Life-cycle wealth trajectories are critical for interpreting the
As with income, Millennials’ wealth trajectories have been experiences of different cohorts. For example, the median
affected greatly by the recession. Comparing the net worth of real wealth of the 1981-83 cohort (the oldest Millennials)
three-year birth cohorts makes this clear. increased by 30 percent between ages 21-23 and 24-26; by 67
percent between ages 24-26 and ages 27-29; and increased
Wealth at ages 21-23 again by 58 percent between ages 27-29 and 30-32. These
seem like sizable gains, but increased wealth growth is
The median real family net worth among the 1981-83 cohort expected given their age and increased earnings. When
of Millennials at ages 21-23 (in 2004) was $5,093. This was compared to older cohorts, it appears that Millennials are
higher than the median wealth among all the earlier-born being left behind on the process of accumulating wealth.
cohorts shown (born 1966-80 and observed during the 1989- During the 12-year period of 2001-2013, the share of the oldest
2001 period), which was $3,796. The three other Millennial Millennials median wealth versus older cohorts dropped
cohorts considered here—1984-86, 1987-89, and 1990-92—all from 134 to 51 percent. This is because the gains for the older
fell short of the older groups’ median at ages 21-23, ranging groups’ median wealth between the respective age groups
from $3,150 to $3,494. Recall that these observations were nearly doubling every three years. Millennials have not kept
from the years 2007, 2010, and 2013, respectively. up this pace and it remains to be seen if Millennials can
regain the steep wealth-building trajectory critical for life-
Wealth at ages 24-26 long financial security.
By ages 24-26, the two older Millennial cohorts (1981-83 and Unfortunately, a number of contemporary trends will make
1984-86) had lower median wealth than their older the wealth building process more challenging in the future,
counterparts had at the same age, falling short by 13 and 10 including the rising cost of higher education; a greater
percent, respectively. The 1987-89 cohort, on the other hand, reliance on debt to finance that education; weak labor
had 3 percent higher wealth, at $8,800. It seems likely that markets following the recession; the decline of traditional
this is a statistical fluke, as no other Millennial cohort came defined-benefit retirement plans; greater income and
close to the older groups’ wealth median in 2013 (at expense volatility along with more temporary work;
corresponding ages). uncertainty around homeownership as a route to building
wealth; and delayed family formation.
Wealth at ages 27-29
Encouragingly, though, Millennials seem to have learned
The severity of the recession is reflected in the low median some lessons from the Great Recession: for example, they
wealth levels of the two older Millennial cohorts observed at generally participate in retirement plans (when offered) at
ages 27-29. The 1981-83 cohort (observed in 2010) had median higher rates, tend to save at higher rates and, generally, are
wealth of $11,038, falling 38 percent below the median of the financially more risk averse.
older groups. The 1984-86 cohort (observed in 2013) had
median wealth of $9,340, falling 48 percent below the older Moving forward, public policy needs to account for the
groups’ median. unique conditions that Millennials are navigating; the
substantial barriers they continue to face as a result of
Wealth at ages 30-32 structural changes in the economy, including labor market
opportunities and employment practices; as well as the
The oldest Millennial cohort (born 1981-83) was in the 30-32
individual characteristics that position this generation to
age range in 2013. Their median real wealth of $17,400 was
surmount these challenges.
49 percent below the median wealth of the cohorts born
between 1957 and 1980. This means that the oldest
Millennials—those entering what should be the prime of
their working life and earning potential—have on average
amassed half the wealth of previous generations at the same
age.

36 4
William R. Emmons is senior economic adviser at the
Center for Household Financial Stability and an assistant
vice president and economist at the Federal Reserve Bank
of St. Louis. Ray Boshara is senior adviser and director of
the Center for Household Financial Stability at the Federal
Reserve Bank of St. Louis
Endnotes
1
Board of Governors of the Federal Reserve System, "2013
Survey of Consumer Finances," 2014.
2
A life-cycle perspective compares a snapshot of all the
people in a particular stage of life at one time with the people
in that stage of life at a different time. The purpose of this
analytical framework is to highlight the factors that are
unique to a life stage; factors unique to a particular cohort or
generation are kept in the background.
3
See Ray J. Boshara, William R. Emmons, and Bryan J.
Noeth, “The Great Recession Casts a Long Shadow on Family
Finances,” Federal Reserve Bank of St. Louis, On the
Economy, September 9, 2014.
4
See the May 2014 conference held at the St. Louis Fed that
focused on the Millennial generation.
5
All figures presented here are from the Survey of Consumer
Finances and are adjusted for inflation to be comparable to
2013 levels. The number of observations of any cohort is
limited by the coverage of the tri-ennial survey, which runs
from 1989 to 2013. The survey does not highlight the
historical time period as clearly as the life-cycle framework;
nonetheless, period effects are very important to consider.

MILLENNIALS
AND HOMEOWNERSHIP Reid Cramer
and Elliot Schreur
For young people throughout the twentieth century, and record. 5 For all ten-year age groups between 25 and 54, the
down to Millennials today, becoming a first-time homeowner homeownership rate is at its lowest point since record
has represented a symbolic milestone along the road to keeping began in 1976. 6
adulthood. From a financial perspective, owning a home can
be a rewarding investment, providing a means to take The rate for young adults (aged 18 to 34) has fluctuated
advantage of generous tax breaks and accrued equity. widely over the last 30 years, falling to around 33 percent in
Buying a home also allows families to access neighborhood the early 1990s and reaching above 41 percent in the mid-
amenities and a range of intangible benefits that come with 2000s. 7 The current rates of homeownership among
residential stability. While homeownership is not always the Millennials aged 30-34 are 2 percentage points below those
right choice—financial or otherwise—for families in all at the same age in 1993. 8 While there is no objective baseline
circumstances, it has historically been one of the most that sets the optimal homeownership rate for young people,
desired and valuable assets on the balance sheets of regardless of what the homeownership rate “should” be, the
American families. Yet the Great Recession may have fact remains that since Millennials have come of age they
changed the calculation young families make when thinking have experienced a convulsing housing finance system and a
about becoming a homeowner. housing market in which incidence of homeownership has
consistently declined.
Current Conditions
In response to the recession, lenders have tightened
Homeownership in America peaked at over 69 percent in mortgage standards and are requiring more money down to
2004-2006, when lax oversight and irresponsible credit finance loans. Between 2007 and 2013, the median down
contributed to the inflation of a housing bubble. Along with payment for the cheapest 25 percent of homes (meaning
housing prices, the ownership rate for all age groups soared, those most likely to be sought by first-time homebuyers)
including for Millennials who were just entering the increased from $6,037 to $9,480, an increase of 57 percent in
household-forming stage of life. 1 Millennials entered the just six years. 9 Granted, this is comparing today’s average
housing market at record levels for their age group: The down payment to that during the lead-up to the housing-
percentage of Americans under age 25 who owned a home finance crash when standards were most lax, but the pattern
surpassed 25 percent for the first time in 2004, up from just holds for longer time spans as well. The down payment for
14.8 percent in 1993. 2 Similar gains were seen for the age the cheapest 25 percent of homes was 7.5 percent of the sales
group between 25 and 29, 41 percent of whom were price in 2013, compared to an average of just 4.2 percent for
homeowners in 2005. 3 the period between 2001 and 2007. 10
The bursting of the housing bubble ushered in a new reality Millennials’ disappointing experience with the housing
for families aspiring to own a home. Housing prices market has naturally shaped their attitudes about
dramatically declined, defaults and foreclosures went up, homeownership. Most Millennials believe that owning a
and mortgage credit tightened. By 2013, after the worst of the home may not offer the kinds of financial benefits it once
recession had past, young Americans had experienced the did. A large majority (62 percent) believes that it is less likely
largest declines in homeownership compared to the peak for families to build equity and wealth through
years of 2004-2006. 4 Although the subset of “young families” homeownership than it was 20 or 30 years ago, 11 and two-
corresponding to later Gen Xers (born 1969-1978) thirds of Millennials (compared to only half of people over
experienced the greatest decline of any age group during the age 65) think renters can be as successful as homeowners. 12
recession, Millennials (born after about 1980) fared almost as
badly. The homeownership rate for Millennials aged 25-29
has bottomed out at 34 percent, near the lowest rate on

Even though Millennials have experienced firsthand some of Even if the Millennial generation catches up to the
the risks involved in homeownership, such as foreclosures homeownership rate of previous generations, it will happen
and severe price drops, they still largely view owning a home at a later age, meaning that the generation may have a
as a lifetime goal. According to a 2014 Fannie Mae survey, harder time building up home equity and taking full
about three-fourths of Millennial renters and nine out of ten advantage of the financial and social benefits of
current Millennial homeowners think that owning a home is homeownership over the life course.
a better choice than renting. 13 The Federal Reserve Board
found that general concerns about the current financial Policy Landscape
viability of homeownership, rather than preferential
prejudices against the idea of homeownership, was the most The ability to become a homeowner in the United States is
common response Millennials gave for renting as opposed to dependent on a number of factors, including having the
owning a home. 14 Half of respondents under age 30 reported ability to make a downpayment, qualifying for a mortgage,
that not being able to afford the down payment for a home finding a house that is affordable, and being able to
was the top reason for not owning a home. 15 These results consistently make loan payments from income over the long
suggest that the primary obstacles to higher homeownership term. All of these elements must come into alignment for a
rates for Millennials are related to the current financial family to be able to responsibly purchase and maintain
status of Millennials. ownership of a home. But since the recession, each of these
factors has become more challenging, and few of the current
Other factors that are lowering the incidence of policy supports in place to support homeownership are well
homeownership among Millennials may be related to positioned to help younger households.
emerging attitudes and preferences. Changing demographic
trends, such as declining marriage and child rearing, reflect For example, the mortgage interest deduction, one of the
life style choices that may move some young adults away single largest tax expenditures, costs taxpayers about $74
from homeownership. 16 Millennials may seek to live in billion a year, 17 yet it largely fails to achieve its purported
greater proximity to other urban resources, making purpose of helping Americans afford homes. 18 First of all, it
suburban developments less attractive. They may opt to live provides benefits only after people have already become
longer with friends or family than choose to live alone. In homeowners, rather than helping them prepare for their first
short, there may be particular characteristics of today’s purchase. Second, this tax provision rewards those with
young people that reflect a more idiosyncratic relationship higher mortgages and misses homeowners who take the
with homeownership than previous generations had. standard deduction on their income tax and do not itemize
their tax deductions. Only about 31 percent of taxpayers
40
2
itemized their tax deductions in 2012. 19 The vast majority of Policymakers have not addressed the most basic questions of
the benefit of the mortgage interest deduction what the housing finance system will look like in the
decades ahead. The government-sponsored enterprises
goes to the highest-income households, who are most likely responsible for providing housing financing, Fannie Mae
to purchase homes even in the absence of the mortgage and Freddie Mac, remain in government receivership. There
interest deduction. According to the Center on Budget and appears broad consensus that this is unsustainable, but
Policy Priorities, “77 percent of the benefits from the Congress has yet to take action on establishing a new set of
mortgage interest deduction [go] to homeowners with rules.
incomes above $100,000, almost none of whom face severe
housing cost burdens.” 20 Millennials as a group are The Challenges to Address
increasingly likely to have low incomes, which puts them at
a distinct generational disadvantage in profiting from this The slowdown of home buying among young Americans is
regressive tax expenditure. 21 potentially troubling for several reasons. First, pursuing
homeownership early is a key factor in being able to build
Other policy efforts miss the mark because they are intended wealth over the life course. 23 Homes are often the largest item
to assist current homeowners rather than help families on a family’s balance sheet. 24 If other avenues to building
achieve homeownership for the first time. In response to the wealth and assets are not opened instead, the current, lower
rising rate of foreclosure, the government backed the trajectory of homeownership among Millennials may remain
refinancing of distressed loans. This policy approach, which a drag on the generation’s finances over their lifetime.
was implemented by the Obama Administration, was largely Second, homeownership has been a way that families access
ineffective at promoting homeownership for the youngest valuable services. It is the residential stability, in addition to
and most recent homeowners. These owners had low levels the fact of ownership, that may bring additional benefits.
of equity built up in their homes when prices fell, and thus Third, homeownership appears to be an enduring aspiration
were the least likely to be able to refinance through this of many young families, who see it as a primary marker of
method. 22 achievement in and of itself. 25 While ownership is not
appropriate for many people given the risks and
One defining feature of the U.S. housing market has been the responsibilities, there should be viable pathways available
widespread availability of mortgage financing. This was a for those that pursue this experience.
primary force behind rising rates of ownership in the second
half of the twentieth century, but it also played a role in Given the prevailing uncertainty in the housing finance
creating the conditions that precipitated the Great Recession. system, it remains to be seen if public policy can be crafted
MILLENNIALS RISING
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| @NEWAMERICA 41
3
to help young families become homeowners in sustainable improve their balance sheets by increasing their savings and
and responsible ways. Lending standards have tightened in lowering their liabilities, they will be denied access to one of
response to the bursting of the housing bubble that brought the most historically powerful asset-building tools—
on the Great Recession. However, policymakers have yet to appropriate mortgage financing. Further policy solutions
act on large-scale reforms to fix the housing finance system. will be required to address the inequities in current policy,
Policymakers will need to balance the objectives of making typified by the mortgage interest deduction, and to
sure mortgage credit is available to worthy borrowers and reexamine how access to housing finance can embrace the
setting new standards to protect consumers in the financial diversity of America. Responding to these challenges can
services marketplace. Regulatory oversight of financial play a constructive role in expanding the opportunity of
services is needed to ensure high-quality mortgages are ownership in America for the rising generation of
offered with appropriate underwriting standards. Millennials.
Eliminating the availability of predatory financial products
will go a long way to mitigating the high levels of risk that
become apparent during the recent housing crisis.
Reid Cramer is Director and Elliot Schreur is a Policy
Another challenge to address is ensuring that there is Analyst in the Asset Building Program at New America.
sufficient supply of affordable homes accessible to first-time
buyers with modest resources. In some cases, it may require Endnotes
expanding the models of housing ownership, to include
1
cooperatives and shared equity projects. These Joint Center for Housing Studies of Harvard University
arrangements, along with protections for renters, can offer (JCHS), “The State of the Nation’s Housing,” Cambridge, MA:
Harvard University, 2014, p. 2.
some of the benefits of ownership while also expanding
choices in tenure in ways that might match the preferences 2
U.S. Census Bureau, “Homeownership Rates for the United
of a larger number of Millennials.
States, by Age of Householder,” Housing Vacancies and
Homeownership (CPS/HVS), 2014.
Still, much of the work to be done is on the demand side:
families need to strengthen their financial position to better 3
Homeownership rates for this group increased from 33.6
prepare for homeownership. This requires supporting percent in 1993 to 41.8 percent in 2006; CPS/HVS 2014.
families’ efforts to increase their incomes, save for a
downpayment, and maintain or repair credit scores, all of 4
William R. Emmons and Bryan J. Noeth, “Housing Crash
which can limit the risk of future loan defaults. Tightened Continues to Overshadow Young Families’ Balance Sheets,”
lending standards, such as higher downpayments and In the Balance: Perspective on Household balance Sheets,
stricter income verification, have made it more difficult for Issue 7, February 2014, Federal Reserve Bank of St. Louis,
Millennials to qualify for a mortgage. 26 Unfortunately, the 2014, p. 2.
income of many Millennials is depressed because of a 5
CPS/HVS, 2014. The most recent evidence suggests that the
restrictive labor market that has hampered the generation’s
homeownership rate for young people may have stopped its
job prospects since the recession. Rates of un- and
decline; see Jed Kolko, “The Recession’s Lost Generation of
underemployment for young workers is always higher than Homeowners Isn’t Millennials – It’s the Middle-Aged,” San
for the general population, even in times of economic Francisco, CA: Trulia, 2014.
booms, but this already-heightened rate of unemployment
for young workers has been magnified by the effects of the 6
JCHS 2014, p. 17.
Great Recession. 27 In addition to having low and unstable
7
income streams, Millennials have higher levels of debt, CPS/HVS 2014.
especially in the form of student loan debt, compared to
8
previous generations of young people. In 2010, 41 percent of Ibid.
households under age 30 held student loan debt, compared
9
Michelle Jamrisko and Alexis Leondis, “More Money Down
to 30 percent in 2004, and the amount of debt has
Adds to U.S. First-Time Buyer Blues,” Bloomberg, August 14,
increased. 28
2014.
At the same time as less money is being saved by Millennials, 10

Ibid.
more money is being required by lenders for a
downpayment. If the rising cohort of young adults cannot
MILLENNIALS
11
MacArthur Foundation, “How Housing Matters: The Graduates,” Washington, D.C.: Economic Policy Institute,
Housing Crisis Continues to Loom Large in the Experiences 2014.
and Attitudes of the American Public,” Chicago, IL:
28
MacArthur Foundation, 2014, p. 31. Chris Herbert, “Will Student Loan Debt Keep Young People
from Buying Homes?” Housing Perspectives blog post,
12
Ibid., p. 36. Cambridge, MA: Joint Center for Housing Studies at Harvard
University, February 6, 2013.
13
Fannie Mae, “Fannie Mae National Housing Survey: What
Younger Renters Want and the Financial Constraints They
See,” 2014, p. 10
14
Federal Reserve Board, “Report on the Economic Well-
Being of U.S. Households in 2013,” Board of Governors of the
Federal Reserve System, 2014, p. 12.
15
Ibid., p. 12.
16
Kolko 2014.
17
Rachel Black, “Rebalancing the Scales: The 2015 Assets
Budget,” Washington, D.C.: New America Foundation, 2014.
18
Will Fischer and Chye-Ching Huang, “Mortgage Interest
Deduction Is Ripe for Reform: Conversion to Tax Credit Could
Raise Revenue and Make Subsidy More Effective and Fairer,”
Washington, D.C.: Center on Budget and Policy Priorities,
2013.
19
Urban-Brookings Tax Policy Center, “Standard, Itemized,
and Total Deductions Reported on Individual Income Tax
Returns, Tax Years 1950-2012,” 2014.
20
Fischer and Huang 2013.
21
JCHS 2014, p. 13.
22
Eugene Steuerle, Signe-Mary McKernan, Caroline Ratcliffe,
and Sisi Zhang, “Lost Generations? Wealth Building among
Young Americans,” Washington, D.C.: Urban Institute, 2013,
p. 2.
23
Emmons and Noeth 2014, p. 3.
24
Clinton Key, “The Finances of Typical Households After the
Great Recession,” in Reid Cramer and Trina R. Williams
Shanks, eds., The Assets Perspective: The Rise of Asset
Building and Its Impact on Social Policy, 2014.
25
Fannie Mae 2014.
26
Federal Reserve Board 2014, p. 12.
27
Heidi Shierholz, Alyssa Davis, and Will Kimball, “The Class
of 2014: The Weak Economy Is Idling Too Many Young

MILLENNIALS
AND STUDENT DEBT Jennifer Wang
and Portia Boone
Student debt is a pocketbook issue for the Millennial As costs rise, the importance of grant aid is ever apparent.
generation. Gone are the days when students could work full Pell grants are an essential part of college financial aid
time at a summer job to pay for college. As college costs have packages for many students from lower-income families. A
skyrocketed, students and their families have taken on debt number of studies have shown that need-based grant aid,
to make up the difference. Because of the high cost of college such as provided by Pell grants, not only increases the
and growing student debt, some are wondering whether number of low- and moderate-income students who enroll in
college is worth it. On average, the answer is yes. However, school, but also increases their likelihood of staying in
many questions remain. Will these trends ever slow? How school. 9 Approximately 9 million students in the United
are student loans affecting the Millennial generation? Will a States rely on funding from Pell grants to attend and
trillion dollars in debt affect the broader economy? complete college. 10 Pell grants are particularly important for
students of color. Half of Latino undergraduates rely on Pell
Current Conditions grants to cover college expenses. 11 This number is even
higher for African-American undergraduates, with over 60
There is no question that tuition is drastically rising. Since percent of African-American students depending on Pell
1980, prices have tripled at public and private four-year grants. 12 But students who receive Pell grants are more likely
universities and doubled at community colleges. 1 Students to have other student loans. Sixty-one percent of Pell grant
and their families borrowed more than $106 billion in recipients had student loans compared to only 29 percent of
Federal Direct Loans to attend those institutions. 2 non-Pell recipients. 13
Outstanding student loan debt in the United States currently
amounts to over $1.2 trillion, recently exceeding total credit Despite the many benefits of Pell grants, recent budget
card debt. 3 Paying for college has become one of the largest agreements reduced the size and scope of the program. The
investments in a person’s lifetime. FY11 budget removed funding for “year-round” Pell grants,
while additional legislation in 2012 reduced the number of
Rising Tuition and Rising Debt students who could qualify. These changes resulted in cuts
of nearly 5 billion (12 percent) per year and over $50 billion
In part, student debt is rising because tuition is rising. In the over 10 years. 14 While the amount of resources devoted to
recent decade from 2002 to 2012, prices for undergraduate Pell grants is well above where they were before 2008, rising
tuition, room, and board at public institutions rose 40 college costs mean that lower-income students will still
percent, and prices at private nonprofit institutions rose 28 require larger student loans amounts—which they must
percent. 4 This rate of increase is four times faster than repay—to finance their education.
inflation. 5
The average college graduate with a bachelor’s degree owes
Tuition is rising at public institutions because states are almost $30,000 in student loans. 15 This amount represents
allocating fewer resources to them. 6 From 2008-2013 states approximately 80 percent of the average income of a young
spent 28 percent less per student on higher education. 7 adult in the United States. 16 Higher overall debt, which many
Before the Great Recession, net tuition was around 36 borrowers have, likely translates to higher monthly loan
percent of all higher education revenue, but today it is over payments for many borrowers. For example, a 2012
47 percent. 8 This means that students and families are bachelor’s degree graduate with an average debt load pays
responsible for a growing share of the cost of college, and an estimated $312 a month in loan payments, $79 higher
many make up the difference in student debt. than what a 2004 graduate with an average debt level would
pay. 17

Recent years have not only seen an increase in the amount private nonprofit institutions and 87 percent at
that students are borrowing, but have also seen an increase private for-profit institutions.
in the number of students who are borrowing. This is driven
in part by significant increases in overall postsecondary • 36 percent of certificate graduates at public
enrollment. In the 2003-2004 academic year, 1.6 million institutions incur debt to attend college compared
undergraduates graduated with debt. 18 This number rose to to 86 percent of certificate graduates at private
2.4 million by the 2011-2012 school year, nearly doubling the for-profit colleges. 23
number of college graduates with debt. 19 In the 2011-2012
academic year, nearly 70 percent of bachelor’s degree Private Loans
recipients took out loans to finance their education. 20 Both
the amount of money borrowed and the percentage of In some instances, grants and federal loans are not enough
students borrowing from 2011-2012 marked the highest rates to cover the cost of attending college. Many students turn to
of borrowing and indebtedness to date. 21 private loans to make up the difference. Private loan debt
accounts for $150 billion of the current outstanding loan debt
This general increase in borrowing has affected graduates of in the United States. 24 However, the decision to take out
certain types of degree programs and institutions more than private loans instead of federal loans can have serious
others: 22 financial implications for students for a number of reasons. 25
Unlike federal loans, many private lenders do not offer
• 42 percent of students earning associate’s degrees borrowers the safety net features such as deferment,
at (4-year or 2-year) public colleges borrow forbearance, and income-based repayment that accompany
compared to 88 percent of students at private for- federal loans. 26 Private student loans are also more difficult
profit colleges. to discharge in bankruptcy (and in death) compared to other
types of non-education debt. 27
• 64 percent of bachelor’s degree graduates of
public institutions graduate with debt compared Despite the relative risk associated with private loans, the
to 74 percent of bachelor’s degree graduates at volume of private loans has steadily increased since 2010-
2011, reaching $6.2 billion in 2012-2013. 28 The most recent
MILLENNIALS
federal survey data available shows that nearly 1.4 million purchase more expensive items such as a car. 39 Seventy-
undergraduates (6 percent of all undergraduates) took out three percent of participants noted that student debt caused
private loans in 2011-2012. 29 Students at for-profit colleges them to delay investing and preparing for retirement. 40
took out private loans at three times the rate of all
undergraduates in 2008. 30 Unfortunately, almost half of Student debt played a central role in the ability or
these borrowers qualified for higher amounts of safer federal willingness of 75 percent of respondents to buy a home. 41
Stafford loans than they took out. 31 Worse still, they Those borrowers willing to purchase a home often find it
graduated with higher levels of debt and are employed at difficult or impossible to be approved for a mortgage due to
lower rates than students at public and private non-profit problems with loan delinquency or a high debt-to-income
institutions. 32 ratio. 42 Loan delinquency, a problem affecting 30 percent of
student loan borrowers in repayment, creates adverse credit
Economic Impacts history that makes mortgage approval more difficult. 43
Borrowers with substantial monthly loan payments can find
Young adults today have struggled with student debt after it difficult to save up the money for down payment on a
graduating from college and looking for jobs during the home. 44
Great Recession. Higher levels of debt in recent years, in
combination with economic factors, have contributed to An increasing number of borrowers are moving back in with
troubling outcomes for borrowers. Even though their parents after graduation to save money for larger
unemployment rates are significantly lower for young expenses. Over 21 million 18- to 31-year-olds lived with their
college graduates compared to those without a degree, parents in 2012. 45 This amounts to 36 percent of the young
young adults have an unemployment rate of 7.4 percent, a adult population and represents a 46 percent rise in this
rate nearly double that of older graduates in their 30s and practice since 2007. 46
early 40s (3.4 percent). 33 Latino and African American
populations are significantly affected by unemployment: the Policy Landscape
unemployment rate for African-American and Latino young
men in some cities is often double the rate of white males. 34 The Higher Education Act is overdue for reauthorization.
Congressional action will offer an opportunity to reform the
Many young adults who are able to find work are ways in which students finance their post-secondary
underemployed and working for reduced wages. According education. The growing awareness of rising student debt
to a study conducted by the Center for College Affordability should inform this process. The Higher Education Act is the
and Productivity, approximately 50 percent of all college law that determines how federal funds are distributed to
graduates are employed in jobs that do not require a four- students and postsecondary institutions. 47 Lawmakers will
year degree. 35 The study suggests that this trend is more use this opportunity to propose ways to address the
likely to affect younger graduates, making them more likely persistent challenges of rising tuition, high unemployment
to be underemployed than older graduates. The Economic rates, and delinquent payments. 48 Proposed changes are
Policy Institute released equally troubling findings, noting likely to include finding new ways to ensure that colleges
that real wages for young graduates have fallen by 8.5 take more responsibility for the cost of attendance and the
percent from 2000-2012. 36 However, there are findings about success of their students. There is growing interest in
how college graduates still earn 84 percent more over their simplifying the process of applying for aid, exploring less-
lifetimes. 37 Nonetheless, this combination of debt and poor expensive educational models such as competency-based
employment prospects have increased the likelihood of education, improving the federal student loan and
falling behind on loan payments, which can lead to lower repayment system, and revisiting Pell grant eligibility. 49
credit scores and wage garnishment.
The Obama Administration has been active in searching for
High debt impacts the ability of borrowers to achieve the ways to alleviate the burden of student loan debt for
financial stability needed to build wealth and reach many borrowers. One of the Administration’s most important
milestones that previous generations had, such as owning a initiatives is the Pay As You Earn (PAYE) Repayment
home, getting married, and starting a family. 38 In a recent program. The program ensures that loan payments remain
survey conducted by American Student Assistance (ASA), affordable by capping monthly payments at 10 percent of a
respondents discussed how student loan debt affected their borrower’s discretionary income and allowing any remaining
lives and factored into their financial decisions. Student debt debt to be forgiven after 20 years. 50 Borrowers working in
affected the ability of over 60 percent of respondents to public service may be eligible for loan forgiveness within 10
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47
years. 51 This plan is currently only available to recent measure to ensure that those seeking postsecondary
borrowers. However, this year, the President signed an education can secure the funds to do so. And as stated
executive order that intended to expand eligibility for the above, income-based repayment and Pay As You Earn are
program to include up to 5 million earlier borrowers. 52 two simple repayment relief mechanisms that many hope to
see improved and expanded.
Unfortunately, Pay As You Earn and other existing
repayment programs have traditionally been underutilized, Financial aid counseling and simple, transparent consumer
possibly due to lack of public knowledge. 53 Advocacy tools are lacking in the student loan market. Key aspects of
organizations, consumer groups, and the Department of both the public and private student loan processes are
Education are working hard to change this. Earlier this year, complex, and borrowers often do not have the tools they
the Secretary of the Treasury and the Secretary of Education need to make informed decisions. 61 The current loan
announced plans to partner with two of the nation’s largest counseling system can be improved in a number of ways.
tax preparation companies, Intuit and H&R Block. 54 Each Counseling could be better tailored to respond to the needs
department will share information about federal loan of individual students, taking place with information
repayment options with the millions of customers the tax personalized for the borrower. Loan counseling could take
companies see each year. 55 The Administration will work place earlier, before students commit to borrowing and could
with educational and professional organizations throughout clearly highlight the differences between private and federal
the country to broadly disseminate information about federal loans. Counseling could take place more frequently,
loan repayment plans and tax benefits. 56 Earlier outreach throughout the borrowing experience, to better ensure that
efforts by the Department of Education have already proven students are exposed to the information and aware of their
effective. 57 Over 200,000 borrowers enrolled in income-based financial obligations and repayment options before the
repayment between the end of September and December repayment period begins.
2013, and an increase of 20 percent. 58
Another solution to the problem of high student loan debt
The Consumer Financial Protection Bureau (CFPB) continues would focus on the role that institutions themselves play in
to play an important role in educating borrowers about the professional success of graduates. The federal
different loan options investigating complaints of unfair and government and state governments could find ways to hold
deceptive financial practices. 59 Their complaints system postsecondary institutions accountable for the outcomes of
gives consumers the opportunity to file complaints about their students, including the amount of debt that some
their experiences with a variety of consumer products, graduates cannot repay. Linking state and federal aid to
including private student loan companies and in some cases, accountability metrics such as student graduation rates and
federal student loan servicers. loan repayment rates is one means of addressing this issue. 62
At present, 31 states currently use or are developing
The Challenges to Address “outcome-based metrics” as part of a performance-based
funding policy (PBF). 63 However, no state PBF policy
With the reauthorization of the Higher Education Act on the includes considerations of student debt levels or the ability
horizon, there are opportunities to engage a full range of of borrowers to repay their student loans. 64
stakeholders, such as state governments, institutions, and
students themselves. Integral to the discussion of how to The federal government and state governments could
address rising student debt are financial literacy, partner to develop institutional accountability metrics and
institutional accountability, and public sector support. practices that encourage schools to keep student debt at
manageable levels. Schools could do so by decreasing
Federal financial aid is a tangled, complex web that is tuition, expanding existing grant programs, or counseling
difficult for students and families to navigate. Complexity students to ensure that they only borrow what they need.
during student loan repayment is one factor that some say
has even led to high default rates on student loans. 60 The Department of Education could hold states accountable
Advocates, consumer groups, and stakeholders in for the performance of their colleges. Such a measure could
Washington are pushing for simpler financial aid systems encourage states to begin to take a more active role in
that could increase college access and decrease student loan ensuring institutional quality and perhaps bring down the
default rates. Simplifying how people apply for federal number of students who borrow for school and do not
financial aid system, including improving the Free complete a degree. This greater sense of shared
Application for Federal Student Aid (FAFSA), is an important responsibility could also result in greater state oversight of
MILLENNIALS
14
educational institutions and increased state funding for Ibid.
higher education. Accountability metrics will continue to
play a vital role in ensuring that postsecondary institutions
15
Ben Miller, The Student Debt Review: Analyzing the State
produce graduates who can secure jobs and repay their of Undergraduate Student Borrowing, Washington, DC: New
loans. America Foundation, 2014.
16
Ibid.
17
Ibid., p. 4.
Jennifer Wang is Policy Director and Portia Boone is a Legal
Fellow at Young Invincibles. 18
Ibid., p. 2.
Endnotes 19
Ibid.
1
Demos and Young Invincibles, Higher Education, The State 20
Ibid.
of Young America, Washington, D.C., 2011.
21
Ibid., p. 1.
2
David Bergeron, “What Does Value Look Like In
Education,” Center for American Progress, January 29, 2014. 22
Ibid, p. 3.
3
Chris Denhart, “How the $1.2 Trillion College Debt Crisis Is 23
Ibid.
Crippling Students, Parents and the Economy,” Forbes,
August 7, 2013. 24
Consumer Finance Protection Board, Private Student
Loans, Washington, D.C., 2012.
4
National Center for Education Statistics, “Tuition costs of
colleges and universities,” U.S. Department of Education, 25
TICAS, Private Loans: Facts and Trends, Washington, D.C.,
accessed September 20, 2014. 2014.
5
Michelle Jamrisko and Ilan Kolet, “Cost of College Degree in 26
Ibid.
U.S. Soars 12 Fold: Chart of the Day,” Bloomberg News,
August 15, 2014. 27
Ibid.
6
Claudio Sanchez, “How the Cost of College Went From 28
Ibid.
Affordable To Sky-High,” National Public Radio, March 18,
2014. 29
Ibid., p. 2.
7
Phil Oliff, Vincent Palacios, Ingrid Johnson, and Michael 30
Consumer Finance Protection Board, Private Student
Leachman, “Recent Deep State Higher Education Cuts May Loans, Washington, D.C., 2012, p. 4.
Hard Students and the Economy for Years to Come,” Center
on Budget and Policy Priorities, March 19, 2013. 31
Ibid.
8
Allie Bidwell, “Colleges Get More State Funds, but Rely on 32
Ibid.
Tuition,” U.S. News and World Report, April 21, 2014.
33
Sarah Ayres, “America’s 10 Million Unemployed Youth
9
The Institute for College Access and Success (TICAS), Pell Spell Danger for Future Economic Growth,” Center for
Grants Help Keep College Affordable for Millions of American Progress, accessed August 27, 2014.
Americans, Washington, D.C., 2014.
34
Tyrone C. Howard, “Why We Should Care About Boys and
10
Ibid. Young Men of Color,” Huffington Post, September 25, 2014.
11
Ibid. 35
Richard Vedder, Christopher Denhart, and Jonathan Robe,
“Why Are Recent College Graduates Underemployed?
12
Ibid. Unversity Enrollments and Labor-Market Realities,” Center
for College Affordability and Productivity, January 2013.
13
Ibid.
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36 58
Heidi Shierholz, Natalie Sabadish, and Nicholas Finio, Ibid.
“The Class of 2013: Young Graduates Still Face Dim Job
Prospects,” Economic Policy Institute, April 10, 2013. 59
Consumer Financial Protection Bureau, “About us,”
August 26, 2014.
37
The Los Angeles Times, “College Graduates Earn 84% More
60
than High School Grads, study says,” August 5, 2011. New America Foundation, Young Invincibles, et al.,
Automatic for the Borrower: How Repayment Based on
38
American Student Assistance, Life Delayed: The Impact of Income Can Reduce Loan Defaults and Manage Risk,
Student Debt on the Daily Lives of Young Americans, Washington, D.C., 2014.
Washington, D.C., 2013, p. 2.
61
TICAS, “Critical Choices: How Colleges Can Help Students
39
Ibid. and Families Make Better Decisions about Private Loans,”
July 2011, 9-10.
40
Ibid.
62
Rory O’Sullivan and Portia Boone, “Tax-Exempt Borrowing
41
Ibid. at Postsecondary Institutions: How Reforming Tax-Exempt
Bonds Can Improve Student Outcomes and Save the
42
Ibid., p. 4. Government Money,” Washington, D.C.: Young Invincibles,
May 2014, p. 26.
43
Ibid., p. 7.
63
New America Foundation, Young Invincibles, et al., 2014,
44
Ibid., p. 7. p. 23.
45 64
Ibid., p. 8. Ibid., p. 23.
46
Ibid., p. 8.
47
Chronicle of Higher Education, September 19, 2013.
48
Ibid.
49
Ibid.
50
Betsy Mayotte, “4 Must-Know Facts About Obama’s New
Student Loan Plan,”U.S. News & World Report, June 11, 2014.
51
Ibid.
52
Ibid.
53
Allie Bidwell, “Half of Outstanding Student Loan Debt Isn’t
Being Repaid,” U.S. News & World Report, August 6, 2013.
54
The White House: Office of the Vice President, “FACT
SHEET: Making Student Loans More Affordable,” June 9,
2014.
55
Ibid.
56
Ibid.
57
Inside Higher Ed, “Modest Uptick for Income-Based
Repayment.”

MILLENNIALS
AND RETIREMENT Elliot Schreur
Despite coming of age in a tough economic climate, current retirees still hold the customary view that retirement
Millennials perceive their financial prospects to be favorable means the end of work, 7 a large majority of younger workers
even in the face of overwhelmingly gloomy evidence about plan to work in retirement. About six-in-ten employed
their retirement preparedness. 1 But being financially secure Millennials plan a “phased” retirement that involves work in
in retirement takes more than optimism. The evidence about some capacity, and about half plan to continue working for a
Millennials’ actual financial status reveals a generation significant time after reaching retirement. 8 This expectation
struggling to save for the long-term, a problem complicated to work in retirement is not unique to the Millennial
by the unique economic and employment situations it faces generation: an even greater share of pre-retirees over 50 say
and by the policy landscape it has inherited. they plan to work in retirement, perhaps reflecting a change
in attitudes about the emotional fulfillment offered by work
Current Conditions as well as a recognition of the financial imperative to
continue earning income for a longer period of time. 9 Indeed,
Millennials are beginning their working lives at a time when Gen Xers and Baby Boomers are significantly more likely
defined-benefit pensions are becoming rarer and Social than Millennials to say they will work in retirement by
Security payments are covering a declining share of necessity as opposed to enjoyment. Millennials’ motivation
earnings. Future retirees will have to rely more heavily on to work in retirement primarily for enjoyment is reminiscent
individual savings in order to be financial secure in of their desire to seek work they find meaningful, even at the
retirement. Most Millennials understand this: 66 percent of expense of lower pay. 10
Millennial workers expect their primary source of income in
retirement to be self-funded. 2 This expectation is consonant Even if Millennials expect to work in retirement, whether by
with Millennials’ anticipation that Social Security will not be choice or necessity, it remains to be seen how they will cope
a reliable source of income for them in retirement. One with unexpected economic hardship. As the experience of
survey found that 81 percent of Millennial workers were the Great Recession demonstrated, relying on employment
concerned that Social Security would “not be there for them” income alone can be risky for those without other financial
in retirement, 3 and another found that 51 percent of resources. Will Millennials’ experience of the recession lead
Millennials expected that they would receive no benefits at to higher levels of saving and a greater demand for expanded
all from Social Security. 4 social-protection policies like Social Security?
Whatever the method by which Millennials hope to save for To date, the evidence about the saving habits of Millennials
retirement, they remain confident in their long-term is mixed. One optimistic report did apply the moniker “super
financial security. Eight-five percent of Millennials say they savers” to Millennials, suggesting their status as a supposed
either already have or will have “enough [money, assets, outlier generation in terms of retirement preparation. 11
resources] to lead the kind of life they want.” 5 And 68 According to the survey, Millennials started saving for
percent of Millennial workers are confident they “will be able retirement earlier than previous generations, 12 and are
to fully retire with a comfortable lifestyle.” 6 But will they, as putting away a relatively larger percentage of their salaries
a generation, be able to attain their own high standards of (8 percent) in retirement savings compared to other
savings and wealth accumulation to make this expectation of generations. 13 However, these results apply only to
a comfortable retirement a reality? To answer that, we first Millennials who are currently employed, and, in the case of
have to consider how Millennials think of retirement. the reported high retirement-contribution percentage, the
results apply only to the subset of employed Millennials who
Americans of all ages are beginning to see retirement not as were offered an employer-based retirement plan and opted
the end of work, as it once was, but as something in between to participate, so this provides a limited and non-
full-time work and full-time leisure. While a majority of representative picture of retirement preparedness.

Studies that have used a broader scope in examining a more Their habit of saving in non-retirement vehicles such as
diverse set of Millennials have found much less promising saving accounts, often offering very low-yields, 17 may be an
indications of Millennials’ saving habits. A Wells Fargo indication of their real or perceived inability to sustainably
survey found that only around half are saving anything for build long-term savings in the current economic climate. Or
retirement, and about half of those who are saving for it may be an indication of their understandable preference to
retirement are saving less than 5 percent of their income. 14 have access to cash-on-hand to offer short-term financial
Furthermore, comparing these results to a different survey, flexibility, even at the expense of saving for longer-term
conducted by FINRA, reveals that some Millennials may be needs. This second explanation is supported by surveys
overly generous about their definition of retirement savings showing that Millennials are actually more willing to take on
when answering a retirement-readiness survey. The FINRA investment risk compared to older Americans, 18 which
survey found that only 40 percent of Millennials have a makes sense given that they have a longer time horizon in
retirement account, suggesting that some Millennials front of them to consolidate gains and recover from market
counted by the Wells Fargo survey may be merely saving for losses than do older Americans nearing retirement. Still, the
general purposes, with an indistinct intention to reserve choice of many Millennials to forego higher long-term yields
some of those funds for retirement. 15 Saving in this fashion in favor of short-term accessible funds may put younger
may not be all bad for Millennials, as building an emergency Americans at a severe financial disadvantage decades hence
fund is a necessary step to securely saving for the long when they look to their individual savings to finance
term, 16 but it does suggest that Millennials might not be as retirement.
retirement-focused as some reports have suggested.
52
2
Regardless of their savings preferences, research from the These facts do not bode well for a generation that expects to
National Institute on Retirement Security found that the rely primarily on individual savings in old age.
median retirement account balance for Millennials in 2010
was $0. 19 This finding suggests that the ability of Millennials Policy Landscape
to save has been undercut by their experiences in a weak job
market characterized by declining incomes. Forty percent of Millennials have been born into a complex and largely
all unemployed workers in mid-2014 were Millennials, 20 inefficient retirement-policy landscape. The inability of
though the generation makes up only about 30 percent of the policymakers to develop a consensus around how to finance
population. 21 For comparison, the overall unemployment Social Security has sowed doubt among future beneficiaries.
rate during the same period was 6.1 percent, compared to This in and of itself is creating obstacles for long-term
15.2 percent for Millennials. 22 Research from the Urban financial planning. Additionally, the policies that are in
Institute shows that, as a result of the Great Recession, place to support savings mostly reach higher-income and
Millennials have less wealth than previous generations did higher-wealth families. The households that could use the
at the same age. 23 Additionally, the few assets Millennials support and might actually respond to incentives to increase
have managed to accumulate seem to be stuck in a holding their savings are largely left out by current policy. So the
pattern, not growing as has the wealth of older Americans very generation that is facing doubts about the viability of
over the same period. This suggests that the net wealth of current social-protection policies—and therefore must
Millennials may be held down by high levels of debt and by embrace higher levels of savings—is simultaneously
the need to hold more assets in low-yield, accessible confronted with policy impediments to providing for their
financial instruments as a precaution against short-term own retirement security.
financial exigencies.
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3
To complicate matters, researchers at the Urban Institute Endnotes
have noted that, even beyond the expectation of receiving
limited Social Security benefits, the Millennial generation in 1
Pew Research Center, “Millennials in Adulthood: Detached
retirement will be responsible for paying off the debts from Institutions, Networked with Friends,” 2014, p. 41.
incurred by previous generations. 24 Future tax burdens will
2
be higher to pay for the inefficient and regressive savings Catherine Collinson, “Millennial Workers: An Emerging
policies of today. Since policies like the preferential tax Generation of Super Savers,” Transamerica Center for
treatment of retirement savings and the mortgage interest Retirement Studies, 2014, p. 26.
deduction overwhelmingly benefit Americans with high
3
levels of existing wealth and lucrative employment Collinson 2014, p. 27.
positions, they largely fail to serve the Millennial generation
4
still struggling to gain a foothold in the labor market. 25 Pew, “Millennials in Adulthood,” 2014, p. 37.
5
The Challenges to Address Pew, “Millennials in Adulthood,” 2014, p. 51.
6
The fiscal pressures that have come as a result of the Great Collinson 2014, p. 19.
Recession continue to stress commitments to a broad array of
7
public investments, including programs devoted to Merrill Lynch, “Work in Retirement: Myths and
retirement security. Given the adverse employment situation Motivations,” Bank of America Corporation, 2014, p. 7.
Millennials have had to face and their limited access to
8
Collinson 2014, p. 21-22.
appropriate retirement-savings options, the need for a fully
funded Social Security program will be an essential element 9
Merrill Lynch 2014, p. 7.
to providing Millennials a secure retirement.
10
iOpener Institute for People and Performance, “Job
Policymakers could provide support by taking action to
fulfilment, not pay, retains Generation Y talent,” 2012.
address a number of barriers to building savings in general
and long-term savings in particular. They should 11
Collinson 2014.
acknowledge the impediments created by the scarcity of
good jobs, which is keeping younger Americans out of work 12
Collinson 2014, p. 28.
longer and at higher rates than young members of previous
generations. They should also take action to ensure that 13
Collinson 2014, p. 31.
everyone in the workforce is able to participate in a
retirement saving plan, whether employer-sponsored or 14
Wells Fargo, “Eight in Ten Millennials Say Great Recession
otherwise. Finally, they should reform the current saving Taught Them to Save ‘Now,’ Wells Fargo Survey Finds,”
incentives to benefit more low-wage workers, the very people News Release, June 10, 2014; Wells Fargo, “2014 Wells Fargo
who need the most help. This last policy change is especially Millennial Study,” 2014, see chart, “Percent of Income
important for the Millennial generation, whose members are Millennials are Currently Saving for Retirement.”
expected to have to rely on individual savings to an
unprecedented extent compared to previous generations. 15
Mottola 2014, p. 4.
Young Americans of the Millennial generation face
extraordinary obstacles to adequately preparing for their 16
Reid Cramer, Justin King, Elliot Schreur, Aleta Sprague,
retirement. Helping them overcome those obstacles will “Solving the Retirement Puzzle: The Potential of myRAs to
require prudent and farsighted policy solutions. Build a Personal Safety Net,” New America Foundation,
2014.
17
Penelope Wang, “Millennials Are Hoarding Cash Because
Elliot Schreur is a Policy Analyst with the Asset Building They’re Smarter Than Their Parents,” Time, July 21, 2014.
Program at New America.
18
Mottola 2014, p. 4.
54
4
19
Nari Rhee, “The Retirement Savings Crisis: Is It Worse Than
We Think?,” National Institute on Retirement Security, 2013,
p. 12.

THE CIVIC AND POLITICAL
PARTICIPATION
OF MILLENNIALS Hollie Russon Gilman
and Elizabeth Stokes
Millennials have come of age in a time of shifting landscapes social media. What are the consequences of pushing
and tumultuous change. Growing up in the Information Age, Millennials out of politics? What are the implications of
Millennials are empowered by information and demand alternative avenues of engagement? Most significantly, what
transparency and authenticity. The explosion of is the relationship between current notions of Millennials’
customization and choice in the marketplace has contributed political engagement and the defining challenges of their
to a generation unhindered by brand loyalty. And as a time?
cohort, Millennials have already confronted several major
crises—from domestic terrorism to the Great Recession to Current Conditions
climate change.
Millennials have the potential to be a potent political force in
Millennials’ unique historic experiences have shaped their our society. In sheer numbers, they will soon overtake Baby
relationship with politics and their communities. Given their Boomers as the largest generational block. In the 2012
sheer numbers, Millennials are a potentially powerful presidential election, 18 to 29 year olds made up over 21
political force, yet they do not pursue traditional forms of percent of the eligible voting population. 1 Despite this, only
civic engagement, such as voting, and are more likely to 50 percent of these Millennials voted, 2 and an even smaller
eschew party identity. Why is this? What real and perceived 23 percent are anticipated to vote in the upcoming 2014
barriers to engagement exist? Despite their skepticism of old- midterm elections. 3 According to a recent survey of likely
school party politics, the generation is finding other and Millennial non-voters conducted by Harvard’s Institute of
more accessible pathways to participate, most notably Politics, 43 percent said it did not matter who was elected
through volunteering, consumer activism, and civic uses of because “Washington was broken;” 31 percent said it did not

matter because “none of the candidates represented their generation. 10 As a CIRCLE study succinctly sums up,
views;” and 25 percent said it did not matter because “the Millennials are not eschewing politics as much as they do
parties were more or less the same.” 4 not see politics as a viable option for achieving the outcomes
they believe are important. 11 Beyond voting, other traditional
Those who did vote played a significant role in the coalition forms of civic engagement—including group and union
that elected President Obama in 2008. The Democratic ticket membership, contacting public officials, attending public
captured 66 percent of the share of young voters, aged 18-29, meetings, and working with neighbors—have also decreased
which was a dramatic increase over previous elections. Even for Millennials. 12
though Millennials consider themselves more socially
liberal, they also have a pragmatic streak that might Despite gravitating away from institutional forms of
undermine a long-term allegiance to one party. As a participation, this generation is finding other, more
generation raised in a period of instant information and accessible avenues to participate in their communities and
unlimited options, Millennials do not feel they have to be engage in the world. 13 While the forms and levels of
fixed in the economic marketplace or in politics. 5 They want engagement vary among different education, race, and
to know what works and are less concerned with whether the income cohorts, Millennials volunteer at a higher rate than
solution comes from Democrats versus Republicans or other generations, engage in consumer activism, and are
Government versus Business. 6 Although they have continued spearheading civic uses of social media. 14 For example, 44
to approve of President Obama’s performance at higher rates percent of Millennials who use social networking sites use
than other generations, their approval rate dropped eleven social media to “like” or promote political material, 42
points between 2008 and 2012. 7 Before the last presidential percent to post thoughts on issues, and 36 percent to
election, over half of Millennial voters believed that the encourage others to act. 15
Obama Administration had not always been effective in
running government. 8 Even though the majority of Policy Landscape
Millennials may continue to vote for Democratic candidates,
they refuse to be pinned down by either political party, and There are major implications for how Millennials approach
half of Millennials now describe themselves as political and perceive politics, some of which may have long-term
independents. 9 societal consequences. First, the pragmatic, “whatever
works” approach to problem-solving public issues may have
Although Millennials are critical of how efficacious and several implications. On the one hand, the fact that
representative government is, they believe that government Millennials are willing to look past ideological divides in
has the potential to be a positive force in solving societal their quest for solutions may be just the antidote for the
problems. For example, 53 percent of Millennials are intense partisanship within today’s politics. On the other
supportive of activist government—more than any other hand, the willingness of Millennials to move between
institutions based on what is perceived as most effective,
MILLENNIALS
raises important questions for the kind of long-term and citizens, to invest time and energy, and to commit resources
collective commitment required for some types of democratic toward a collectively determined endeavor, can be a
action and problem solving. powerful tool to facilitate, rather than a substitute for,
meaningful civic engagement and political participation in
While studies suggest Millennials believe in the theory of the 21st century.
government as a powerful tool for addressing social
problems, putting that theory into practice seems The Challenges to Address
challenging if the so-called “startup generation” looks
outside of government, forging individual pathways as The main obstacle policymakers must address is not unique
entrepreneurs rather than investing collectively as citizens. to Millennials, but applies to the body politic: the
This may be the result of Millennials’ experiences with functioning and trust of the country’s democratic
government, as reflected in the Great Recession and its institutions. A 2014 Gallup Poll found that 30 percent of
aftermath, congressional paralysis, the Affordable Care Act Americans say they have “a great deal” or “quite a lot” of
rollout and subsequent public criticisms, and extended confidence in the Supreme Court, 29 percent in the
foreign wars. The challenge will be to reengage this hopeful presidency, and 7 percent in Congress. Evidently, the
but disaffected generation and demonstrate there is a real perception that Washington is broken is a view shared by all
space for them to make government into the positive and generations. Thus, when policymakers consider how to
representative force they believe it can be. harness a generation that is disaffected, but powerful and
persuadable, they must focus on policies that improve the
Clearly, Millennials are finding other ways of engaging accessibility, representativeness, and functioning of
politically in the world beyond electoral politics. For democratic institutions for all. For that effort to succeed, we
example, the use of social media and online social networks need broad democratic reforms that revamp campaign
like Twitter and Facebook is often argued to have finance, modernize electoral systems, and support more
revolutionized social activism by connecting and organizing participatory and effective systems of governance. 16
otherwise disparate individuals. Social media has been
effective at increasing engagement, particularly because it Policymakers must find ways to engage Millennials—
reduces the threshold of participation—often to just a click of particularly in democratic institutions and formal democratic
a button. There are limits to this form of expression as a processes. This requires keeping in mind the different ways
means to foster political debate, as social media naturally in which engagement varies across demographic groups.
creates echo chambers of like-minded friends, saving one Millennials who have not attended four-year colleges will not
from conflicting viewpoints. However, social media have the same access to concentrated civic communities.
platforms that provide a means to give-and-take with other Thus, particular focus needs to be given to creating
MILLENNIALS RISING
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59
alternative civic opportunities, such as in community 13
Kei Kawashima-Ginsberg, “Understanding a Diverse
colleges and national service programs. 17 For example, there Generation: Youth Civic Engagement in the United States,”
are benefits in creating more space for Millennials to directly Washington, D.C.: The Center for Information and Research
participate in public decision-making through innovative on Civic Learning and Engagement, 2011.
processes such as participatory budgeting 18 and
14
participatory rulemaking. 19 Community-driven initiatives, Pew Research Center, “A Portrait of Generation Next,”
such as worker cooperatives and tool libraries, are also 2010.
promising paradigms that can increase civic engagement. If
15
pursued at scale, these models have the potential to enhance Lee Rainie, Aaron Smith, Kay Lehman Schlozman, Henry
a level of citizenship for the Millennial generation, which in Brady, and Sidney Verba, “Social Media and Political
turn can lead to greater political participation over the long Engagement,” Washington, D.C.: Pew Research Center, 2012 .
term.
16
See also K. Sabeel Rahman, “Beyond the Free Market,”
Salon, March 4, 2012.
17
Hollie Russon Gilman is a Civic Innovation Fellow at New Constance Flanagan, Peter Levine, and Richard Settersten,
America. Elizabeth Stokes is a former fellow with the “Civic Engagement and the Changing Transition to
Roosevelt Campus Network. Adulthood,” Washington, D.C.: CIRCLE, 2009.
Endnotes
18
Hollie Russon Gilman, The Participatory Turn:
Participatory Budgeting Comes to America, Doctoral
1
National Conference on Citizenship, Millennials Civic Dissertation, Cambridge, MA: Harvard University, 2013.
Health Index, 2013.
19
K. Sabeel Rahman, “Is Participatory Rule-Making
2
Ibid. Possible?” The Nation, April 9, 2012.
3
Institute of Politics at Harvard University, “Survey of Young
Americans’ Attitudes Toward Politics and Public Service,”
2014.
4
National Conference on Citizenship 2013.
5
Michelle Diggles, “Millennials – Political Explorers,”
Washington, D.C.: Third Way, 2014.
6
Ibid.
7
Ibid.
8
Pew Research Center, “The Generation Gap and the 2012
Election,” 2011.
9
Pew Research Center, “Millennials in Adulthood: Detached
from Institutions, Networked with Friends,” 2014.
10
Ibid.
11
Abby Kiesa et al., “Millennials Talk politics: A Study of
College Student Political Participation,” Washington, D.C.:
CIRCLE, 2007.
12
National Conference on Citizenship 2013.

60 4
DESCRIPTION OF CONVENERS
New America
New America is led by President Anne-Marie Slaughter and an outstanding Board of Directors, chaired by Eric Schmidt,
Executive Chairman of Google, Inc. New America emphasizes work that is responsive to the changing conditions and
problems of our 21st century information-age economy—an era shaped by transforming innovation and wealth creation,
but also by shortened job tenures, longer life spans, mobile capital, financial imbalances, and rising inequality. The
foundation’s mission is animated by the American ideal that each generation will live better than the last. Today that
ideal is under strain. Our nation is seeing a growing socioeconomic divide in terms both of income and family stability.
Too often, these challenges have proven impervious to conventional party politics and incremental proposals. Since its
founding in 1999, New America has proven itself capable of advancing innovative policy proposals in a bipartisan
fashion, at the national, state, and local levels. With an emphasis on big ideas, impartial analysis and pragmatic
solutions, New America’s organizational communications infrastructure is designed to reach wide and influential
audiences that can change the country’s policy discourse in critical areas, elevating the profile of promising new ideas
and creating an enabling environment for policy reform.
Roosevelt Institute Campus Network

The Roosevelt Institute Campus Network, a national student initiative, engages young people in a unique form of
progressive activism that empowers them as leaders and promotes their ideas for change. Through communication and
coordination with political actors and community members, students identify pressing issues facing their towns,
counties, and states. Taking advantage of the unique resources on their college campuses, they engage in policy
research and writing and then connect the fruits of that research to the political process, delivering sound, progressive
proposals to policymakers, and advocacy groups. We call our unique model of policy activism Think Impact. Adding
policy papers to picket signs, Think Impact engages young people in activism fueled by innovative, student ideas.
Founded in the wake of the 2004 election, the Roosevelt Institute Campus Network was formed in order to strengthen
the progressive movement by meaningfully engaging young people in politics. The Campus Network emphasizes that
young people can do far more than participate in campaigns; students are asked to take action on their ideas and create
an impact in their communities. Today, the Campus Network boasts more than 10,000 members organized at
approximately 85+ chapters across the country. Chapters foster debate and dialogue on campus, teach policy courses,
engage with local policymakers, generate policy, and promote student ideas through conferences and publications. The
Roosevelt Campus Network is a division of the Franklin and Eleanor Roosevelt Institute, an organization dedicated to
preserving and promoting the legacy of their namesakes for future generations.
Young Invincibles
Young Invincibles was founded in the summer of 2009, motivated by the recognition that young people’s voices were
not being heard in the debate over health care reform. Co-Founders Ari Matusiak and Aaron Smith and a few friends
wanted to change that, so they set up a one page website, asking young people to share their stories, believing in their
generation’s capacity to stand up and make itself heard. In a little more than a year, ‘YI’ went from a group run out of a
law school cafeteria to a national organization, representing the interests of 18 to 34 year-olds and making sure that our
perspective is heard wherever decisions about our collective future are being made. We do this through conducting
cutting-edge policy research and analysis, sharing the stories of young adults, designing campaigns to educate on
important issue areas, informing and mobilizing our generation and advocating to change the status quo.

SPEAKERS
Nona Willis Aronowitz
Contributor, NBC News
Nona Willis Aronowitz reports on education for NBCNews.com. Previously, she was a fellow at the Roosevelt Institute, a
staff writer at GOOD magazine, an associate producer for National Public Radio, and a local reporter for the Chicago
Tribune. She is the co-author of Girldrive: Criss-crossing America, Redefining Feminism and the co-founder of Tomorrow
magazine. She graduated from Wesleyan University with a degree in American Studies.
Sarah Audelo
Policy Director, Generation Progress
Sarah Audelo is the Policy Director for Generation Progress, where she leads Generation Progress’s policy solutions for
economic justice, civil and human rights, and democracy. Prior to joining Generation Progress, Audelo was director of
domestic policy at Advocates for Youth, a national nonprofit that focuses on young people’s sexual health and rights.
Previously, she was a 9th- and 10th-grade special education teacher in South Texas as part of Teach for America. Audelo
earned a Bachelor’s Degree in Foreign Service from Georgetown University and a Master’s Degree in Public Policy from
George Washington University.
Perry Bacon, Jr.

Senior Political Reporter, NBC News
Perry Bacon, Jr. is a Senior Political Reporter at NBC News, where he previously served as political editor for
theGrio.com. Before joining NBC, Bacon was a White House and congressional correspondent for The Washington Post.
He was also an on-air political analyst for MSNBC and a national political correspondent at TIME Magazine. In addition
to his work at NBC, Bacon is a Jeff and Cal Leonard Fellow at New America, where he explores the implementation of the
Affordable Care Act in the American South. He is a graduate of Yale University.
Kisha Bird
Senior Policy Analyst, Center for Law and Social Policy
Kisha Bird is Senior Policy Analyst with the Youth Policy team at CLASP, where she focuses on youth development and
youth workforce policy. She is also the project director for the Campaign for Youth (CFY), a national coalition co-chaired
by CLASP and the National Youth Employment Coalition. Previously, Bird was the project director for the Pennsylvania
Statewide Afterschool/Youth Development Network. She has also worked in various community settings with children,
youth, and families. Bird holds a Master’s Degree in Social Service and a Master of Law and Social Policy from Bryn
Mawr College Graduate School of Social Work and Social Research. She earned a Bachelor's Degree in Sociology from
Spelman College.

Rachel Black
Senior Policy Analyst, New America
Rachel Black is a Senior Policy Analyst in the Asset Building Program at New America. She provides research, analysis,
and public commentary on federal policies to increase savings among low-and moderate-income households. Her
specific areas of focus include reform of asset limits in public assistance programs, federal spending in support of asset
building objectives, and initiatives to increase savings at tax-time. Previously, Black led legislative advocacy around a
broad set of federal anti-poverty policies at the national grassroots organization Bread for the World, including its 2010
campaign to protect and enhance tax policies serving low-income working families. Black holds a Bachelor’s Degree in
History, Technology, and Society from the Georgia Institute of Technology.
Ray Boshara
Director of the Center for Household Financial Stability, Federal Reserve Bank of St. Louis
Ray Boshara is Senior Adviser and Director of the Center for Household Financial Stability at the Federal Reserve Bank of
St. Louis. The center conducts research on family balance sheets and how they matter for strengthening families and the
economy. Before joining the Fed, Boshara was the vice president of New America, where he launched and directed
programs that promote asset development, college savings, financial inclusion, and a new social contract. He has also
worked for CFED, the United Nations in Rome, and the U.S. Congress. Boshara is a graduate of Ohio State University,
Yale Divinity School, and the John F. Kennedy School of Government at Harvard.
James Bullard
President, Federal Reserve Bank of St. Louis
James Bullard is President and Chief Executive Officer of the Federal Reserve Bank of St. Louis. In these roles, he
participates in the Federal Open Market Committee (FOMC) and directs the activities of the Federal Reserve’s Eighth
District head office in St. Louis and three other branches. In addition to his work at the Fed, Bullard is an honorary
professor of economics at Washington University in St. Louis, where he also sits on the advisory council of the
economics department and the advisory boards of the Center for Dynamic Economics and the Wells Fargo Advisors
Center for Finance and Accounting Research. He is a member of the University of Missouri-St. Louis Chancellor’s
Council, the United Way U.S.A. Board of Trustees, and the Greater St. Louis Financial Forum. Bullard also serves on the
board of the St. Louis Regional Chamber. He received his Ph.D. in Economics from Indiana University. He holds a
Bachelor’s Degree in Economics and in Quantitative Methods and Information Systems from St. Cloud State University.
Kevin Carey
Director of the Education Policy Program, New America
Kevin Carey directs the Education Policy Program at New America. Carey's research includes higher education reform,
improving college graduation rates, online education, community colleges, and the federal Elementary and Secondary
Education Act. His writing has appeared in several major publications and was anthologized in Best American Legal
Writing. He has received two Education Writers Association awards for commentary. Carey appears frequently on media
outlets including CNN, C-SPAN, and NPR. Prior to joining New America, he worked as the policy director of Education
Sector, and as an analyst at the Education Trust and the Center on Budget and Policy Priorities. Previously, he worked
for the Indiana Senate Finance Committee and as Indiana's assistant state budget director. Carey is a graduate of
Binghamton University and Ohio State University.

Tim Chen
Chief Executive Officer, NerdWallet
Tim Chen is the Chief Executive Officer of NerdWallet, where he oversees the organization’s internal strategy. Before
starting NerdWallet in 2009, Chen was a hedge fund analyst at Perry Capital investing in payment processing
companies, credit card networks, and technology companies. He also worked as an equity research analyst at Credit
Suisse First Boston. Chen graduated from Stanford University with a degree in economics.
Rohit Chopra
Student Loan Ombudsman, Consumer Financial Protection Bureau
Rohit Chopra is Student Loan Ombudsman and Assistant Director of the Consumer Financial Protection Bureau, where
he leads the agency's work on behalf of students and young Americans. The treasury secretary appointed Chopra in
October 2011 to the ombudsman position, which was created by the Dodd-Frank Act. Before joining the CFPB, he worked
at McKinsey & Company. Chopra holds a bachelor’s degree from Harvard College and a master’s degree from the
Wharton School at the University of Pennsylvania.
Reid Cramer
Director of the Asset Building Program, New America
Reid Cramer is the Director of the Asset Building Program at New America, which promotes policies and ideas that
would broaden access to economic resources through increased savings and asset ownership. Prior to joining New
America, Cramer served as a policy and budget analyst at the Office of Management and Budget. He has also worked for
a range of nonprofit housing and community development organizations. Cramer has a Ph.D. in public policy from the
LBJ School of Public Affairs at the University of Texas at Austin and a master’s degree in city and regional planning from
the Pratt Institute. Additionally, he has a bachelor’s degree from Wesleyan University.
Richard Deitz
Assistant Vice President and Senior Economist, Federal Reserve Bank of New York
Richard Deitz serves as Assistant Vice President and Senior Economist for the Federal Reserve Bank of New York. He
provides economic analysis of upstate New York for the Federal Reserve System and consults with state and local
governments on regional economic issues. Prior to joining the Federal Reserve, Deitz served as a professor of economics
for several upstate New York colleges and universities. Deitz serves on the Board of Economic Advisors for the New York
State Division of the Budget and the New York State Assembly Ways and Means Committee. He also resides on the Board
of Directors for the New York State Economics Association, where he served as president, and is past president of the
Regional New York Center for Financial Training. Deitz has a Ph.D. in Economics from Binghamton University.

William R. Emmons
Senior Adviser of the Center for Household Financial Stability, Federal Reserve Bank of St. Louis
William R. Emmons is a Senior Economic Adviser at the Center for Household Financial Stability. He is an assistant vice
president and economist at the Federal Reserve Bank of St. Louis, where his areas of focus include household balance
sheets and their relationship to the broader economy. Emmons also speaks and writes frequently on banking, financial
markets, financial regulation, housing, the economy, and other topics. His work has been highlighted in major
publications, including The New York Times, The Wall Street Journal, and American Banker. Emmons received a Ph.D.
in finance from the J.L. Kellogg Graduate School of Management at Northwestern University. He received his bachelor’s
and master’s degrees from the University of Illinois at Urbana-Champaign.
Tiana Epps-Johnson
Election Administration Director, New Organizing Institute
Tiana Epps-Johnson is the New Organizing Institute's Election Administration Director. She and her team work to grease
the wheels of democracy by creating open tools and resources, facilitating communication, and building infrastructure
for election officials and organizers. Prior to joining NOIEF, Epps-Johnson was a junior specialist at the UCSF Center for
Tobacco Control Research and Education, where her work focused on documenting 100+ years of advocacy efforts in the
state of Iowa and providing recommendations to improve contemporary efforts. Epps-Johnson holds an MSc in Politics
and Communication from the London School of Economics and a Bachelor’s Degree in Political Science from Stanford
University.
Carrie Gleason
Director of the Fair Workweek Initiative, Center for Popular Democracy
Carrie Gleason is the Director of Fair Workweek Initiative, a collaborative effort anchored by the Center for Popular
Democracy that brings together grassroots organizations across the country to shift employer practices and win policy
solutions that achieve an equitable workweek. Before joining the Center for Popular Democracy, Gleason co-founded the
Retail Action Project (RAP), a fast-growing organization of retail workers dedicated to improving opportunities and
standards in the retail industry. Gleason has worked in the labor movement for over 14 years. She is a member of the
Presidential Council of Cornell Women and served on the North Star Fund Community Funding Committee. Gleason was
a 2009-2010 Charles H. Revson Fellow, a Program on the Future of New York City at Columbia University. She holds a
bachelor’s degree from Cornell University.
Jessica Grose
Author and Media Contributor, Slate and Bloomberg Businessweek
Jessica Grose is a frequent contributor to Slate and Bloomberg Businessweek, where she writes on women’s issues,
family, and the Millennial generation. She also writes about creativity and culture for Fast Company's Co. Create. Grose
is the author of Sad Desk Salad, a satire about the blogging life, and the co-author of LOVE, MOM: Poignant, Goofy,
Brilliant Messages from Home. Previously, she was a senior editor at Slate, and an editor at Jezebel. Her work has
appeared in the New York Times, The New Republic, Cosmopolitan, and several other publications.

Taylor Jo Isenberg
Vice President of Networks, Roosevelt Campus Network
Taylor Jo Isenberg is the Roosevelt Institute's Vice President of Networks. She was previously the national director of the
Roosevelt Institute Campus Network. Prior to joining the Campus Network's national staff as deputy director in 2011, she
served as chapter leadership and Southern Regional Coordinator, where she guided southern chapters as they provided
solutions to the many challenges facing the region. She has been involved with the Campus Network since 2006, when
she joined the University of North Carolina at Chapel Hill chapter.
Elisabeth Jacobs
Senior Director for Policy and Academic Programs, Washington Center for Equitable Growth
Elisabeth Jacobs is Senior Director for Policy and Academic Programs at the Washington Center for Equitable Growth.
Her research focuses on economic inequality and mobility, family economic security, poverty, employment, social
policy, social insurance, and the politics of inequality. Prior to joining Equitable Growth, she was a fellow in governance
studies at the Brookings Institution. Earlier in her career, Jacobs served as senior policy advisor to the Joint Economic
Committee of the United States Congress, and as an advisor to the U.S. Senate Committee on Health, Education, Labor
and Pensions. She holds a Ph.D. and an A.M. from Harvard University and a bachelor’s from Yale University.
Russell Krumnow
Managing Director, Opportunity Nation
Russell Krumnow is the Managing Director of Opportunity Nation, a national, bipartisan, cross-sector campaign to
increase upward mobility and close the opportunity gap in America. He guides the strategy for Opportunity Nation’s
diverse mix of initiatives including coalition engagement, events, policy advocacy, and grassroots initiatives. He also
leads the campaign’s work on the Opportunity Index, a tool measuring 16 key indicators in communities that include
economic, educational, and civic factors critical to accessing opportunity. Prior to joining Opportunity Nation, Russell
designed professional and leadership development programs with a consulting firm for clients that included members of
the Obama Administration. Russell is a graduate of Baylor University and earned a Master of Arts in Political Science at
the University of Mississippi.
Prerna Lal
Immigration Attorney, Advancing Justice--Asian American Justice Center
Prerna Lal is an immigration attorney at Advancing Justice--Asian American Justice Center. Previously, she was a Co-
Founder of DreamActivist, a robust network of highly-organized and diverse undocumented youth with digital
engagement capacity to fight deportations. Her model of organizing has been used by immigration organizations across
the country to end deportations. She is a graduate of The George Washington University Law School, with a
Distinguished Accomplishment award in Civil Rights and Civil Liberties.

Donna Levin
Co-Founder and Vice President of Operations, Care.com
Donna Levin is a Co-Founder and Vice President of Operations at Care.com, where she oversees all of the systems,
policies, and procedures related to Member Care. In this role, she has helped launch Care.com's care management
offering and establish the safety and customer service infrastructure. Prior to co-founding Care.com, Levin served as vice
president of operations at Upromise, an online service that helps families save for college. She is a member of the
advisory board for The Greater Boston Chamber of Commerce Women's Network, and she recently joined the advisory
board for WEST, which promotes the advancement of women in engineering, science, and technology. She also is on the
Board of Overseers at Emerson College and is a Board Member for the Center for Women and Enterprise. Donna holds a
bachelor’s degree from Emerson College.
Laurenellen McCann
Civic Innovation Fellow, New America
Laurenellen McCann is an organizer, tech policy expert, and Civic Innovation Fellow with the Open Technology Institute
at New America. Her work seeks to refocus public sector “innovation” on communal ingenuity, emphasizing the
importance of relational organizing, behavior change, and cultural context above individual tools and technologies. She
also runs The Curious Citizens Project, a D.C.-based organization that melds tech, placemaking tactics, and art
activation to increase participation in public commons. Previously, McCann was the national policy manager at the
Sunlight Foundation. In 2013, she was named one of TIME Magazine's 30 People Under 30 Changing the World. McCann
holds a Bachelor’s Degree in Government from Wesleyan University.
Brandee McHale
Chief Operating Officer, Citi Foundation
Brandee McHale is the Chief Operating Officer at the Citi Foundation, responsible for shaping the Foundation's overall
strategy and grantmaking programs. Before joining Citi Foundation, McHale served as the director of operations for Citi
Community Capital. She also developed an investment portfolio for the Ford Foundation that supports low-income
households' efforts to participate in the mainstream economy and attain economic self-sufficiency. Currently, McHale
serves as the vice chair of the Board of Directors of the Corporation for Enterprise Development (CFED) and is the co-
chair for the Living Cities Assets and Income Working group and Local Integration Initiative selection committee. She
holds a Master’s Degree in Urban Policy from the New School for Social Research.
Jen Mishory
Executive Director, Young Invincibles
Jen Mishory is the Executive Director of Young Invincibles. Mishory has conducted research and authored reports on
health, higher education, and economic issues facing the Millennial generation. She has testified before Congress on
financial aid and student loans, and serves as a member of the inaugural Consumer Advisory Board of the CFPB. Before
founding Young Invincibles, Mishory was a consumer representative for the National Association of Insurance
Commissioners, where she worked with Insurance Commissioners around the country to ensure strong consumer
protections in the health care industry for young people. Mishory received bachelor’s degree from UCLA and a J.D. from
Georgetown University Law Center.

Rourke O’Brien
Health and Society Scholar, Harvard University
Rourke O’Brien is a sociologist who studies the connections between public policy, economic behavior, and population
health. He holds a Ph.D. in Sociology and Social Policy from Princeton University, where he authored a dissertation on
the social and structural determinants of self-reported disability. Rourke previously served as a senior policy advisor at
the U.S. Department of the Treasury and he is coauthor of Taxing the Poor, which explores the link between regressive
state and local tax policy and poverty-related outcomes. As a Health & Society Scholar, Rourke will continue his
research on how population health is impacted by household finance, taxation, and social policy.
Sabeel Rahman
Four Freedoms Center Fellow, Roosevelt Institute
Sabeel Rahman is a Four Freedoms Center Fellow at the Roosevelt Institute. Sabeel's work focuses on the future of
democratic theory and practice, particularly in the face of growing economic inequality and the ongoing effects of the
Great Recession. He currently helps direct the Gettysburg Project, a three-year program co-sponsored by the Roosevelt
Institute and the Harvard Kennedy School, which works with community organizers, practitioners, and academics to
develop a learning and innovation space in the field of civic engagement. Sabeel holds a Ph.D. from the Department of
Government at Harvard University, a J.D. from Harvard Law School, and an A.B. in Social Studies from Harvard College.
He also holds a M.Sc. in Economics for Development, and a M.St. in Sociolegal Studies from the University of Oxford,
where he studied as a Rhodes Scholar.
E.J. Reedy
Director in Research and Policy, Kauffman Foundation
E.J. Reedy is a Director in Research and Policy at the Ewing Marion Kauffman Foundation, where he oversees research
initiatives related to education, human capital development, and data. Since joining the Kauffman Foundation in 2003,
Reedy has coordinated the Foundation’s entrepreneurship and innovation data-related initiatives. He is a globally
recognized expert in entrepreneurship and innovation measurement and has consulted for a variety of agencies.
Previously, Reedy was a senior analyst at the Federal Reserve Bank of Kansas City and had extensive experience in non-
profit management. Reedy earned a bachelor’s degree in economics, mathematics, and American studies from the
University of Kansas and a Master’s Degree in Managerial Economics and Strategy from Northwestern University.
Hollie Russon-Gilman
Civic Innovation Fellow, New America
Hollie Russon Gilman is a Civic Innovation Fellow at New America. She recently served in the White House as the Open
Government and innovation advisor, working on a second term Open Government agenda — including participatory
budgeting as part of U.S. Open Government commitments. Gilman is a founding researcher and organizer for the Open
Society Foundation's Transparency and Accountability Initiative and Harvard's Gettysburg Project to revitalize 21st
Century civic engagement. She has worked as an advisor, researcher, and consultant to numerous non-profits and
foundations, including the World Bank, Case Foundation, and Center for Global Development. She holds a Ph.D. and
master’s degree from the Department of Government at Harvard University and A.B. from the University of Chicago.

Mark Schmitt
Director of the Political Reform Program, New America
Mark Schmitt is the Director of the Political Reform Program at New America, which develops new approaches to
understanding and reforming the market for political power. A prominent writer on politics and public policy, with
experience in government, philanthropy, and journalism, he is also a columnist for The New Republic and a leading
voice on political reform, budget and tax policy, and social policy. Previously, Schmitt was executive editor of The
American Prospect and the director of the Governance and Public Policy program at the Open Society Foundations. He
has also worked as a speechwriter and later policy director to Senator Bill Bradley, focusing on welfare reform, higher
education, and urban policy. Schmitt graduated from Yale University
Anne-Marie Slaughter
President and Chief Executive Officer, New America
Anne-Marie Slaughter is the President and CEO of New America, a public policy institute and idea incubator based in
Washington and New York. She is also the Bert G. Kerstetter '66 University Professor Emerita of Politics and
International Affairs at Princeton University. From 2009–2011 she served as director of policy planning for the United
States Department of State, the first woman to hold that position. Upon leaving the State Department she received the
Secretary’s Distinguished Service Award for her work leading the Quadrennial Diplomacy and Development Review, as
well as meritorious service awards from USAID and the Supreme Allied Commander for Europe. Prior to her government
service, Slaughter was the Dean of Princeton’s Woodrow Wilson School of Public and International Affairs from 2002–
2009 and the J. Sinclair Armstrong Professor of International, Foreign, and Comparative Law at Harvard Law School
from 1994-2002. She received a B.A. from Princeton, an M.Phil and D.Phil in International Relations from Oxford, where
she was a Daniel M. Sachs Scholar, and a J.D. from Harvard.
Zakiya Smith
Strategy Director, Lumina Foundation
Zakiya Smith is a Strategy Director at the Lumina Foundation, where she leads the development of new models of
student financial support for higher education. Prior to her work in philanthropy, Smith served as a senior advisor for
education at the White House Domestic Policy Council, where she was tasked with developing President Obama's higher
education policy. Smith also served in the Obama Administration as a senior adviser at the U.S. Department of
Education. Before her tenure in the Obama Administration, Smith was director of government relations at the Advisory
Committee on Student Financial Assistance. Smith holds a Bachelor’s Degree in Political Science and secondary
education from Vanderbilt University and a Master’s Degree in Education Policy and Management from the Harvard
Graduate School of Education.

Wendy Spencer
Chief Executive Officer, Corporation for National Community Service
Wendy Spencer is the Chief Executive Officer of the Corporation for National and Community Service (CNCS), a federal
agency that administers AmeriCorps, Senior Corps, the Social Innovation Fund, and other programs. Under her
leadership, CNCS has launched new partnerships, including FEMA Corps, School Turnaround AmeriCorps, STEM
AmeriCorps, VetSuccess AmeriCorps, and Financial Opportunity Corps; increased the agency’s focus on veterans and
military families; and led the national service response to a number of severe disasters. Spencer’s management career
spans 30 years and includes leadership roles in government, nonprofits, and the private sector. Among many honors,
she has received the prestigious Governor’s Award from Gov. Jeb Bush for her disaster work. Spencer holds a Bachelor’s
Degree in Fine Arts and Speech Communications from Valdosta State University.
Jennifer Tescher
President and Chief Executive Officer, Center for Financial Services Innovation
Jennifer Tescher is the President and CEO of the Center for Financial Services Innovation (CFSI). CFSI leads a network of
financial services innovators committed to promoting high-quality financial products for underserved consumers. She
has become a nationally known expert on this topic, with a monthly column in American Banker, frequent interviews
and articles in the financial press, and major speaking engagements at a broad spectrum of industry and policy
convenings. Tescher also serves as a member of the Board of Directors for Credit Builders Alliance and is a member of
Bank of America’s National Community Advisory Council. Tescher received undergraduate and graduate degrees in
journalism from Northwestern University and a public policy degree from the University of Chicago.
Jennifer Wang
Policy Director, Young Invincibles
Jennifer Wang is the Policy Director at Young Invincibles, where she builds and maintains relationships with
policymakers, partner groups, and other stakeholders. She also manages Young Invincibles’ advocacy strategy, analyzes
bills and policy proposals, and creates and refines the organization’s legislative affairs systems. Before joining Young
Invincibles, Jennifer worked on women’s health policy at NARAL Pro-Choice America, where she focused on issues
relating to the Affordable Care Act and managed the annual publication of the preeminent report on choice-related
federal and state laws and legislative activity in the United States. She graduated from UCLA with a bachelor’s degree
and received a J.D. from the University of Iowa College of Law.
Conor Williams
Senior Researcher in the Early Education Initiative, New America
Conor P. Williams is a senior researcher in the Early Education Initiative at New America. His work addresses
educational equity, dual language learners, and school choice. His work has appeared in The Washington Post, The New
Republic, The Daily Beast, The Atlantic, Talking Points Memo, and elsewhere. Before joining New America, he taught
first grade in Crown Heights, Brooklyn. Williams holds a Ph.D. and M.A. in Government from Georgetown University, an
M.S. in Teaching from Pace University, and a Bachelor’s Degree in Government and Spanish from Bowdoin College.

Matt Yglesias
Executive Editor, Vox Media
Matthew Yglesias is the Executive Editor at Vox Media and author of The Rent Is Too Damn High. He is affectionately
referred to in the blogosphere as "Big Media Matt", as his personal blog has been hosted, at various times, on Blogger,
Typepad, Josh Marshall's TPMCafe, and at matthewyglesias.com. Before joining Vox Media, Yglesias was a business and
economics correspondent at Slate's Moneybox. He also wrote the ThinkProgress blog for the Center for American
Progress, and he was a staff writer for The Atlantic. Upon graduation, Yglesias joined the American Prospect as a writing
fellow, later becoming a staff writer. He holds a Bachelor’s Degree in Philosophy from Harvard University.

NOTES

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MILLENNIALS RISING:

NEXT GENERATION POLICIES IN THE

October 16-17, 2014

Long View Gallery

Conveners and Supporters …………………………………………………………….……………………………………………. 3

Symposium Agenda …………………………………………………………….……………………………………………………… 5

Millennials, Work, and the Economy …………………………………………………………….……………….……….. 17

Millennials and the State of Post-Secondary Education ………………………….…………………………........ 21

Shifting Work and Family Trends among Millennials ………………………….…………………………………..... 27

Millennials and Homeownership …………………………………….……………………………………………………… 39

Millennials and Student Debt …………………………………….……………………………………………………........ 45

Millennials and Retirement …………………………………….…………………………………………………………..... 51

The Civic and Political Participation of Millennials .……………………………………………………………………57

Description of Conveners …………………………………………………………………….……………………………………….61

Thank you for your time, energy, and engagement.

MILLENNIALS RISING | @NEWAMERICA | 2014 1

Key support provided by

with additional support from

MILLENNIALS RISING | @NEWAMERICA | 2014 3

October 16-17, 2014

Day One: October 16

• Reid Cramer, New America

• Anne-Marie Slaughter, New America

• Ray Boshara, Federal Reserve Bank of St. Louis

• Nona Willis Aronowitz, NBC News

• James Bullard, President, Federal Reserve Bank of St. Louis

• Brandee McHale, Citi Foundation

• Jennifer Wang, Young Invincibles

Screening: Welcome to Fairfax

• Conor Williams, New America

• Wendy Spencer, Corporation for National and Community Service

• Hollie Russon Gilman, New America

• Rachel Black, New America

MILLENNIALS RISING | @NEWAMERICA | 2014 1

We know that the influence of the Millennial generation will 13

Jennifer Silva, Coming Up Short, New York: Oxford

University Press, 2014, p. 146.

MILLENNIALS RISING | @NEWAMERICA | 2014 6

MILLENNIALS RISING | @NEWAMERICA | 2014 1

MILLENNIALS RISING | @NEWAMERICA | 2014

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With the rise in tuition and growing complexity within

Peter Cappelli, Skill Gaps, Skill Shortages, and Skill

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The Challenges to Address 4

The current political environment presents a number of 5

Andrea Flynn is a Fellow at the Roosevelt Institute. 17

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-50 -40 -30 -20 -10 0 10 20 30 40

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At the same time as less money is being saved by Millennials, 10

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