Apr 30, 2013, 9:10 PM ETConference Presentation, Panel

A Matter of Degrees: How Education Enriches Us All

The panel "A Matter of Degrees: How Education Enriches Us All" featured Dean Ernest Wilson (USC Annenberg), Ross Duvall (economist), Greg Lambros (University of Phoenix), former Governor Gray Davis, Farah Doon (University of Waterloo), and student Udita Srimushnam.
Dean Wilson emphasized the urgency of the issue, framing education as a civic duty and an "educational ecology" requiring robust ties between public sectors, private industry, non-profits, and universities.
Wilson introduced the concept of "Talent 21" and the "third space" of skills (creativity, pattern recognition, communication) that employers seek but cannot find in current graduates, directing attendees to talent-2021.org for assessment.

Ross Duvall reported that one additional year of educational attainment in the U.S. correlates with an 8% to 10% increase in earnings.
Returns on post-secondary education (high school to associate degree) are particularly high, exceeding 17% for both GDP per capita and worker wages.
Educational attainment levels explain over 70% of the variation in real GDP per capita across U.S. metropolitan areas.
The U.S. ranks 3rd globally in educational attainment for ages 55–64 but has fallen to 16th for ages 25–34, indicating a declining competitive position.
Duvall noted that higher education "lifts all boats," raising wages for non-degree holders in communities with highly educated workforces.
A growing political debate in Washington questions the ROI of higher education due to rising costs (outpacing inflation) and difficulties recent graduates face in finding employment.

Greg Lambros highlighted a "skills gap" where millions of jobs remain unfilled because specific competencies are not taught, prompting some companies to hire internationally.
Lambros argued that 80 million Americans without bachelor's degrees need targeted upskilling and validation of competence early in their career paths.
Panelists discussed the shift from traditional classroom models to competency-based validation, where learners can prove specific skills to employers via certifications or micro-credentials.
Former Governor Davis advocated for blending traditional degrees with online, employer-defined skill sets to lower costs and accelerate entry into high-paying jobs.
Lambros criticized the current "credit hour" system as archaic, noting that students often learn more from video games and technology than traditional lectures.
Farah Doon described a co-op model where 98% of graduates from the University of Waterloo are employed within six months, with the majority having zero student debt.
Doon cited 16,000 co-op students earning $189 million collectively in one year as evidence of the value in integrating practical work with academic study.

Graduate student Udita Srimushnam stated that while education remains a "high return" investment, it has become an "incredibly risky" venture due to skyrocketing costs.
Srimushnam noted that UC tuition costs rose from $5,380 per quarter in 1998 to roughly $8,000 in 2008, a significant increase during a decade of stagnant wages.
Graduate financing costs are exacerbated by Stafford loan interest rates of 6.8% and Grad PLUS rates of 7.9%, which often do not cover full tuition.
The unemployment rate for those aged 20–24 reached 13.4% in March, compounding the risk of incurring debt without immediate earning potential.
Srimushnam observed "degree inflation," where an increasing number of graduates hold degrees, potentially diminishing the unique value proposition of the credential relative to the cost incurred.
She highlighted a paradox where prestigious private universities offer better networking and "door-opening" power despite higher costs, whereas public institutions face rising prices without comparable guarantee of job placement.

Governor Davis detailed a $500 million initiative launching four private-public research institutes (e.g., Qualcomm Institute, California Nanosystems Institute) funded by corporate partners rather than the state legislature.
These institutes aim to replicate the success of Bell Labs by allowing the private sector to dictate research priorities, ensuring commercial viability and societal benefit.
The "Connect" model at UC San Diego and similar initiatives link academic innovation directly with entrepreneurs and venture capital to drive commercialization.
Greg Lambros proposed that for-profit, online institutions provide the necessary "disruptive innovation" to force efficiency and lower costs in the broader higher education sector.
Farah Doon emphasized that culture is key to industry-academia integration, citing the University of Waterloo's founding culture of mandatory industry work terms and faculty research ownership.
Doon noted that students at her institution frequently launch startups (e.g., the inventor of the BlackBerry) due to the blend of deep academic knowledge and external exposure.

Audience member Brooke Allen, an employer, raised critical concerns regarding student integrity and the ethical obligations of universities to disclose poor job placement rates for specific majors.
Allen recounted an anecdote where a placement office president instructed staff to suppress data regarding the lack of jobs in early childhood education to protect departmental interests.
Allen suggested a policy shift where universities would be liable for 50% of student loan debt if graduates fail to find gainful employment.
Former Governor Davis responded that the government should mandate absolute transparency on total program costs and career mapping before enrollment to prevent "degree mills."
Davis argued that the U.S. must focus on "lifting all boats" rather than just the top 20%, as broad-based skill improvement drives GDP and national competitiveness.
Panelists agreed that the current system fails first-generation and low-income students who lack the cultural capital to navigate higher education and align degrees with market needs.
Udita Srimushnam countered that collaborative, project-based curricula (as in her USC program) reduce opportunities for cheating and foster the collaborative skills employers actually value.
Farah Doon warned that demographic shifts, such as the ratio of workers to retirees dropping from 10:1 to 3:1 by 2050 in some nations, will intensify the demand for skilled graduates.

The panel concluded that the "traditional" brick-and-mortar model must evolve into a blended system where online education and employer-defined certifications fill gaps left by universities.
Greg Lambros predicted that the future of education delivery will require reinventing the "credit hour" to focus on efficiency and rapid skill acquisition rather than seat time.
Ross Duvall asserted that the primary argument for education must be revitalized to counter political skepticism regarding its value as a public investment.
Governor Davis stated that California's "West Coast DNA" of entrepreneurship and self-reliance drives the necessity for private-public partnerships in education and research.
Farah Doon emphasized that universities must become "problem-rich environments" where students solve global issues (water, energy, security) while gaining practical experience.
The consensus was that without significant structural changes, the mismatch between education output and market demand will continue to exacerbate inequality and economic stagnation.