The Human Capital Deficit of Disconnected Youth in Philadelphia

Posted by Drexel University on August 8, 2016

The Human Capital Deficit of Disconnected Youth in Philadelphia

Neeta Fogg and Paul Harrington
Center for Labor Markets and Policy
Drexel University
September 2015

Introduction
A coalition of big businesses including companies such as Starbucks, Wal-Mart, CVS, recently organized the 100,000 Opportunities Initiative designed to build pathways for teens and young adults between 16 and 24 that can build workplace skills, raise levels of education attainment and earn post-secondary credentials that are valued in the job market— towards the goal of securing a job. These companies’ efforts will help young workers who do not have work experience to prepare for the labor market with internships, apprenticeships and on-the-job training. For youth who already have work experience but are looking to build new skills, the 100,000 Opportunities Initiative will provide them with appropriate education and training opportunities to build these skills and launch a career.

A central feature of this initiative is that it is targeted at a group of young people who are largely ignored by federal and state education leaders—disengaged or disconnected youth (also called Opportunity Youth by the coalition)—who are out of school and not working—essentially idle—at a time in their lives when most young people are intensely investing in the development of their long-term productive abilities and simultaneously making key career and life decisions that will impact the quality of their lives and the lives of their children for decades into the future.

Disconnected youth are disengaged from the two primary activities in which most youth are engaged— school and work. Both these activities are considered to be human capital building activities, that is, activities that add to the long term productive abilities of individuals. Human capital refers to the knowledge, skills, abilities and character traits that are developed in each of us in varying degrees. Individuals who are engaged in education are growing their stock of human capital. Work experience also adds to the stock of human capital as skills, knowledge and work place savvy are also acquired through work—even at very young ages.

http://sharedprosperityphila.org/wp-content/uploads/2016/08/The-Human-Capital-Deficit-of-Disconnected-Youth_Philly-final.pdf