Education and Research
Economics 309 ‚ Humboldt County Wealth Indicators Project 2000
Julia Spring Baker
Data Sources:
How
are we doing?
Please see the endnote for
the definitions of the different SIC codes, and explanations important to
the reading.1
The
numbers of Humboldt County Education and Research companies represented by
SIC codes 8299 ‚ 8713 have grown an average of 11.18 % between 1991 and 2000.
In 2000, the higher education sector (SIC codes 8221 ‚ 8222) was made up of
315 establishments; Humboldt State having 314, and College of the Redwoods
having 1. Establishments, in this case,
refer to individual units, or departments, of which a state university like
HSU will have multiple. The higher education sector experienced a very
slight average increase in annual employment of 1.96% between 1991 and1999,
and an average rise of 3.64% in per-capita average annual wages in the same
period. All other SIC codes (8229 ‚
8713) have seen an average increase in annual employment of 16.57% and an
average increase in per-capita wages of 15.59% between 1991 and 1999.
Surprisingly,
Humboldt County Education and Research employment is not dominated by the
higher education sectors, but by the research and testing sector (SIC codes
8731 ‚ 8734). The higher education sector provided 43% of the Education and
Research employment in Humboldt County. Though
the research and testing sector dominated the Education and Research job market,
the higher education sector provided the highest percentage of wages in the
industry, followed by the engineering sector (SIC code 8711), and then the
research and testing sector. From 1991‚1999, the higher education sector provided 89.08% of per-capita
wages.
The
Humboldt County Education and Research Industry provides approximately 1%
of the total average annual Education and Research employment in California. The Humboldt County average annual per-capita
wages follow the trend of California in all reportable sectors except the
engineering sector, which is highest in California but second highest in Humboldt
County (see graph). The average annual
per-capita wages in Humboldt County are below the California averages in all
Education and Research sectors.
Why
is this important?
Measuring the sustainability
of a community seems to get more difficult the closer one analyses its individual
components.Ý Viederman (1996) offers
this definition of sustainability:
" . . . a community's control
and prudent use of all forms of capital ‚ natureís capital, human capital,
social capital and cultural capital ‚ to ensure, to the degree possible, that
present and future generations can attain a high degree of economic security
and achieve democracy while maintaining the integrity of the ecological systems
upon which all life and production depends."
Social capital, one of the
five capitals mentioned in Viedermanís definition of sustainability, is defined
as "a community's networks of civic engagement and norms" (Hackett
1998). Some examples of social capital in a community
are committees, volunteerism, and community activities. The degree to which a community supports social
capital, and the impact that that support has on its economy, is a strong
indication of its overall sustainability. The amount of education available to the members of a community is
a crucial component of social capital. Therefore,
it may seem conclusive that the more education available to a community, the
more sustainable that community is likely to be. However, this report brings
to light some possible exceptions to this general truth.
Higher
Education Sector (SIC codes 8221 ‚ 8222)
The presence of Humboldt State
University (HSU) and College of the Redwoods (CR) in Humboldt County must
be considered when analyzing the countyís economic sustainability. The fact that the higher education sector employs
43% of all Humboldt County Education and Research employees, and provides
89.08% of the industryís per-capita wages, may enhance as well as significantly
hinder Humboldt Countyís sustainability. For instance, CR and HSU attract students from
all over the world. While some of these
students will remain in Humboldt County after graduation and contribute to
the local economy for years to come, a higher percentage will transfer before
graduating, or move to a different area after graduating. This is why HSU and CR make up the higher education
sector of the Education and Research industry; because the majority of the
ěproductî (educated individuals) is exported.
Students may remain in Humboldt
County after graduation and create businesses that provide more jobs for locals.
However, many current students must work in addition to attending school
in order to exist. In addition, many students require low-income
housing off campus. This tends to create
a job market and a housing market saturated with students (especially in the
communities where the schools reside) and a shortage of low-income jobs and
housing available for non-student locals.
Another important point is that the monetary injections into the county from students can potentially be quite high. These injections include federal and state financial aid, other scholarships and grants, money given to them from their parents, and income generated from an outside profession brought with them to Humboldt County. A leakage of student money, which may or may not exceed the injections, generally comes from travel. If a sector of the economy has greater monetary injections than leakages, we may consider that sector economically sustainable. However, a high amount of money coming into a community from outside can falsify the market trends, especially if those injections are dependent on a fluctuating and transient population whose presence is not necessarily guaranteed.
Other Sectors (SIC codes 8299 ‚ 8713)
The economic well being of
the other Education and Research sectors in Humboldt County is also critical
in determining the sustainability of this industry. The 11.18% growth in the number of companies that comprise sectors
8299 ‚ 8713 seems to suggest that Humboldt County has been able to sustain
these other sectors despite the presence of the higher education sector (see
graph). Sectors 8299 ‚ 8713 provide
very specialized education and research, while HSU and CR provide a more general
higher education. Specialized education
sometimes draws students of different ages, professional levels and income
status than universities or community colleges. In addition, companies that export specialized
research will probably have faculty who are not also working in higher education,
due to the tendency for both jobs to be full time career paths. The diverse variety of Education and Research
entities in Humboldt County promotes the economic sustainability of the region,
just as any system must have diversity in order to sustain itself.
SIC code 8711, which is made
up of privately owned engineering firms, has consistently provided the highest
average annual payroll of all the 8229 ‚ 8713 sectors from 1991 ‚ 1999. This sector has provided only the third highest
average annual employment in the same period. The research and testing sector, provided the highest level of employment
in that period, but only the third highest average annual payroll.
The problem of significant income inequality tends to exist in communities
where the least amount of employees is receiving the highest wages.
This can be a problem that is not consistent with economic sustainability.
SIC code 8299, which is made
up of all schools and educational services not elsewhere classified, is the
only Education and Research sector in Humboldt County to appreciate a relatively
consistent rise in average annual employment and average annual payroll from
1991 ‚ 1999. Many of the organizations
that make up this sector, like The Ink People, Trees Foundation and The Humboldt
Literacy Project, are non-profit. An increase in non-profit Education and Research organizations shows
that Humboldt County attracts and supports not only non-profits, but also
employees, and people who will support the organizations monetarily. This is very significant as far as sustainability
is concerned, because it shows a commitment by the members of the community
to issues that generally revolve around sustaining any one of the five capitals,
as well as upholding the three pillars of sustainability.2 This also shows willingness from community
members to seek work that is consistent with their values at the expense of
higher wages.
In addition to the advantages
of a strong non-profit presence in a community, there may be some potential
disadvantages. Non-profits are inherently difficult to sustain because
Finally, it is important to
notice that the total average annual per-capita wages in Humboldt County fall
below California averages in all Education and Research sectors. This reflects a choice by industry employees
to live and work in Humboldt County despite lower wages. Many factors may contribute to these lower averages,
including the size of Humboldt County relative to other California counties,
the relative income of Humboldt County, the value of Humboldt County in the
education and research market, and/or the wage monopoly of the higher education
sector.
The Humboldt County Education
and Research employment cluster seems to both contribute to as well as hinder
the overall sustainability of Humboldt County. The presence of the higher
education sector offers some advantages and some disadvantages to the sustainability
of Humboldt County. With such a dominant sector present, diversity of the
industry may be compromised. Diversity
is a critical component of any healthy system.
The diversity of all the sectors in this industry cluster seems to
enhance Humboldt Countyís sustainability, despite the presence of the higher
education sector, or the potential problems with income distribution. The exportation of education alone is a very clean industry, as well
as potentially vital to a sustainable community. However, as with any system, its overall sustainability depends on
the balance of its many, often precarious, parts.