The Relationship between Job Turnover Rates and Financial Literacy in Black Males

Running head: JOB TURNOVER RATES AND FINANCIAL LITERACY 1 TheRelationship between Job Turnover Rates and Financial Literacy inBlack MalesNameInstitution

  1. Topic: The relationship between job turnover rates and financial literacy in black males

  2. Literature Review

  1. Background Of The Problem/Gap

  1. There is a need for research that connects between undergraduate rates among African American males and accesses to financial literacy. Mostly the part of African American population that is in high debts produce lower undergraduate rates.

  2. Financial literacy refers to the ability, knowledge, and set of skills that enables a person to make efficient, effective and informed decisions with all his/her financial resources. According to Lusardi &amp Mitchelli (2007), financial literacy empowers a person to manage his wealth and investment in an effective way and given that its link with the financial stability of a person, it has an effect on the job turnover rate. Having a college degree provides a person with basic financial knowledge, which means that having a high percentage of a given component of the general population without education is an indication that that component will have low financial literacy.

  3. There is not enough to studies done to make a connection between job turnover and financial literacy. This study investigate the graduation rates among the African-American males in the US. Further, it seeks to investigate how financially deprived HBCUs are faring against the goal of educating African American males. Among the minority group (African American), only 19% of the population aged between 22 and 29 years have a college degree.

  4. The number of African Americans graduating from four-year colleges stills lags by far behind that of their white counterparts. Compared to 61% graduation rate of white students enrolling in four-year colleges in the first year, the rate for African American students is only at 39%. DeAngelo et al. (2011) states that completing a college degree is held in high esteem in the American society and is often used to gauge the quality of an institution

  5. A study carried out in 2014 by Young Invisibles (which is a nonpartisan economic and education community advocacy group) revealed that an African- America graduate has the same job prospect as a white person who has a prison record or a white high-school dropout. The gap was attributed to the racial discrimination. The report also noted high likelihood of an African-American turning over the job compared to the white which was attributed to among other factors, job dissatisfaction, and poor ability to manage future personal finance (Harper, MacLehose &amp Kaufman, 2014).

  6. Wilson (2009) noted that joblessness experience, and dissatisfaction at the place of work have a long lasting effect on the economic mobility of black population. This is reflected in the statistics that indicates that over the last 15 years the wages for the black workers have fallen by 44% in comparison to that of the whites, which have risen by 45%. In as much as the shrunk in the wages for the African-American has led to the decline in the total economic contribution of the black in USA economy, the shrunk in wealth has a high link to the low financial literacy, especially among the Black males who are heads of their families (Harper, MacLehose &amp Kaufman, 2014).

  7. Jagman et al., (2014) noted that the financial literacy could be highly attributed to gaining a college certificate. This followed a study that concluded that financial literacy is high among the high school dropouts compared to the undergraduates of the same age.

  1. Theoretical Foundations

  1. Numerical data study (Hsieh &amp Shannon, 2005).

  2. Completing college (Franke, Hurtado, Pryor &amp Tran, 2011

  3. Theory of Planned Behavior and Financial Literacy (Kennedy, 2013).

  1. Review of Literature Topics with a Key Theme for Each One

  1. Determinants of job turnover: there are various factors that determine the rate of job turnover among the population including the level of education, personal background, gender and level of literacy (Donohue, 1988).

  2. Gender and Population financial literacy: there is a considerable existing gender gap in financial literacy between male and female which transcends the states and national borders (Fisk, 2015).

  3. Finance and education: there is a high link between the level of education and the financial literacy in the USA and around the world, where education has been singled out as a key factor in improving national financial literacy (Lusardi &amp Mitchelli, 2007).

  4. The impact of one`s race in access to education in the USA: There is a wide disparity in accessing higher education among differences in USA with the education system seem to favor the white more (Ryan &amp Bauman, 2016).

  5. The black male undergraduate rate in the USA: there is a high concern that the rate of black males accessing undergraduate education in the USA is relatively lower than that of the Hispanic and Whites (Harper, 2012).

  6. Financial literacy: even though the financial literacy is declining around the world over the years, there is still a considerable level of financial illiteracy among uneducated members of the public

  7. Measuring the level of financial literacy in the USA: the statistics on financial literacy helps (Hastings et al., 2012).

  8. Job turnover and financial literacy: there is a link between the financial literacy and the job turnover

  9. African American family’s access to financial literacy programs: there is conceived gap between White American and African American families access to financial literacy programs

  1. Summary

  1. Gap/problem: There’s a need for a study that establishes a link between undergraduate rates among African American males and their accesses to financial literacy

  2. Prior studies: most of the studies establishes a link between the two variable (educational and financial literacy), with none of the studies directly exploring the third variable black males), but the variable is considered as a component (subset) of other variables such as race.

  3. Quantitative study: There are existing tools, techniques, and sources of the data that will enable the collection of numerical values on the three variables (Job turnover, African American males access to Education (graduation rates), and Financial literacy level and programs).

  4. Significance: This study will contribute to a broad area of correlating African American financial literacy and job turnover the study can establish particular approaches that can be employed by policy makers to improve the level of financial literacy and lower the job turnover rate.

  1. Problem Statement

It is not known ifand to what extent there is a relationship between job turnover ratesand the financial literacy of African American males that haverecently graduated from a university.

  1. Sample and Location

The study needs 64graduated African American males in the Arizona region. They have tobe aged between 21 and 25 years.

  1. Research Questions

  1. RQ1: Is there a relationship between job turnover rates among African American males from ages (21-25 years of age) and access financial literacy programs?

  2. RQ2: Is there a relationship between African American family’s access to financial literacy programs and African-American male graduation rates?

  1. Hypothesis

  1. H1-There is a significant relationship between job turnover rates and the financial literacy of African American males that have recently graduated from a university.

  2. Ho-There is no relationship between job turnover rates and the financial literacy of African American males that have recently graduated from a university.

  3. H2: There is a significant relationship between the African American family’s access to financial literacy programs and African-American male graduation rates.

  4. H20: There not a significant relationship between the African American family’s access to financial literacy programs and African-American male graduation rates.

  1. Methodology and Design

This research willemploy the quantitative methodology that will be carried out througha correlation design

  1. Purpose Statement

The key purpose ofthis quantitative correlational study to establish the cross-cuttingrelationship between the rates of job turnover and the literacy ratesamongst the black American male in the USA.

  1. Data Collection

  1. The researcher will evaluate the general overview of job turnover in the USA grouped by different demographics, such as race, gender, and education level. This data will be obtained from American Bureau of Statics and other sources including past studies and journal articles

  2. The researcher will evaluate the data from the education department to determine the rates of Black American, who graduate compared to other people such as White and Hispanic males.

  3. The researcher will interview 64 graduated African American males 21 and 25 years.

  4. The secondary information obtained from the past studies and journals will then be integrated with the primary information obtained from the interview

  1. Data Analysis

  1. Descriptive statistics will be used to summarize the two variables (job turnover and education literacy) among the African-American males

  2. Univariate test for the outliers will be carried to evaluate whether there is any case that statistically lies out of sample

  3. The normality test will be carried out

  4. In order to test the linear regression for the two hypothesis the study will employ the inferential statistics.

Table

&nbsp

Ten Strategic Points

Comments or Feedback

Broad Topic Area

The relationship between job turnover rates and financial literacy in black males

&nbsp

Literature review

Background of the problem/gap, Theoretical foundations (models and theories to be foundation for study)and Review of literature topics with key theme for each one

&nbsp

Problem Statement

It is not known if and to what extent there is a relationship between job turnover rates and the financial literacy of African American males that have recently graduated from a university

&nbsp

Research Question

Is there a relationship between job turnover rates among African American males from ages (21-25 years of age) and access financial literacy programs?

&nbsp

Sample

64 Undergrad graduated African American males.

&nbsp

Phenomena

There is a significant relationship between job turnover rates and the financial literacy of African American males that have recently graduated from a university.

&nbsp

Methodology Design

Quantitative /correlation Design

&nbsp

Purpose statement

The key purpose of this quantitative correlational study to establish the cross-cutting relationship between the rates of job turnover and the literacy rates amongst the black American male in the USA.

&nbsp

Data collection

The researcher will evaluate the general overview of job turnover in the USA grouped by different demographics, such as race, gender, and education level. This data will be obtained from American Bureau of Statics and other sources including past studies and journal articles

&nbsp

Annotated Bibliography

DeAngelo,L., Franke, R., Hurtado, S., Pryor, J. H., &amp Tran, S. (2011).Completing college: Assessing graduation rates at four-yearinstitutions.&nbspLosAngeles: Higher Education Research Institute, Retrieved from UCLA.http://heri.ucla.edu/DARCU/CompletingCollege2011.pdf

Thestudy sought to investigate the graduation rates amongst variousgroups of people in Los Angeles. The study used the data from the‘2004 CIRP Freshman Survey (TFS). The sample of the research wasmade up of the 3700 postsecondary institutions which have a degreecompletion programs. The study found out that among the minoritygroups that include the African American, only 19% of the totalpopulation have a college degree for age of between 22 years and 29years. As such, the study concluded that the number of AfricanAmerican who graduate from institutions of higher education(post-secondary institutions) lag behind that of their Hispanic andwhite counterparts. The study makes a contribution to the availableinformation about the level of education amongst the AfricanAmerican. One of the most interesting findings from the study wasthat the African American are currently graduating at a relativelyhigher rates than predicated which could change future job and socialperspective. I would retain the statements that the African Americanstill lag behind their Hispanic and white counterparts when it comesto graduating from the institutions of higher education.

Donohue,J. J. (1988). Determinants of job turnover of young men and women inthe United States: a hazard rate analysis.&nbspResearchin Population Economics,&nbsp6,257-301. Retrievedfrom http://www.ncbi.nlm.nih.gov/pubmed/12280929

Thestudy employed the hazard models to evaluate the job tenure forfemale and male entrants to the full time labor after graduating fromthe institution of higher running. The aim of the study was toidentify whether demographic factors such as race and gender haveeffect on the job turn over. The study sampled comprised of 1527women and 1431 men. The study found out that the percentage of thepeople with higher education for men is 6times that of the women. Onthe racial perspective, the study found out that 73.2% of the workersinterviewed were white while only 25.75 were female. The studyconcluded that increased education in both male and female has asignificant negative effect on the job turn over for both male andfemale. The study presents important information regarding therelationship between increased learning and job turnover, wherehigher learning is attributed to a low turnover. There is no specificinformation that is made by the author that I would wish to retain inmy study.

Fisk,P. C. (2015). Gender gap in financial literacy transcends nationalborders.&nbspMonthlyLabor Review.Retrieved fromhttp://www.bls.gov/opub/mlr/2015/beyond-bls/gender-gap-in-financial-literacy-transcends-national-borders.htm

The study was carried out followinga gap in the research regarding the disparity in the financialliteracy between female and male. The study evaluated the statisticsand give questions to both male and female from USA and otherdeveloped countries such as UK and Germany. NBER analysis&nbspwasused to compare data from over 20 countries. The study found out thatthere is a wide gap between the financial literacy in men and womenwhere 38% of men in USA answered financial literacy questionscorrectly compared to 22% of the women. The authors elaborate thathaving a less financial literacy high a correlation with a lessengagement in the behavior that is important to a long run financialwell-being such as attention to fees, and investments in stock. Themost interest part of the study is the findings that there isdisparity in financial knowledge between the black people in USA andthe white one. I would wish to retain the statement that thedisparity in financial literacy exist amongst people of all theeducation levels, ages, as well as the social economiccharacteristics.

Harper,S. R. (2012). Black male student success in higher education: Areport from the National Black Male College Achievement Study.Retrieved fromhttps://www.gse.upenn.edu/equity/sites/gse.upenn.edu.equity/files/publications/bmss.pdf

Thestudy sought to investigate the performance of the black male inhigher education. The study followed a growing concern of a disparitybetween black males and their whet counterpart’s educationalaccess. The study sample include 219 black males that had at least anundergraduate diploma and who had attained a mean aggregate of 3.0.The study found out 35.85 of the respondents came from signal family,17.8% came from low income families, 27.9% of the respondent hadmothers with bachelor degree, and 22% had fathers with bachelordegree. The study found out that the black males lag in attainingundergraduate education compared to the other races. The studyconcludes that there is a lot that needs to be done in order to makethe black people to have a more sense of belonging to theinstitutions of higher education. The study makes a majorcontribution in revealing the annual changes in the number of blackpeople attaining undergraduate education. I would retain thestatement that the Black American lag behind others when it comes toaccessing higher education.

Hastings,J. S., Madrian, B. C., &amp Skimmyhorn, W. L. (2012).&nbspFinancialliteracy, financial education and economic outcomes&nbsp(No.w18412). National Bureau of Economic Research. Retrievedfrom Linkhttp://econpapers.repec.org/paper/nbrnberwo/18412.htm

Thestudy reviewed the literature on financial education, financialliteracy and the consumer financial outcomes. The author consideredthe way in which financial literacy is evaluated in the existingliterature and evaluate how the current literature address whetherthe financial education has an impact on the financial literacy ornot. Even though the study revealed existent in some degree to whichfinancial education fails to improve financial literacy, the findingsrevels that to a great extent the benefits of financial educationoffsets the costs that are used in the acquisition of the sameknowledge. As such the study concludes that undergraduate educationenhances the level of financial literacy. The study plays a criticalrole of establishing the existing relationship between the level ofeducation and the financial literacy. I would retain the statementsthat the financial literally is correlated to the financialeducation, which means that when the low level of undergraduate rateamong the black American can be linked to low financial literacy.

Jagman,H., Lewis, K., Nunn, B., &amp Walter, S. (2014). Financial literacyacross the curriculum (and beyond) Opportunities for academiclibraries. College&amp Research Libraries News,&nbsp75(5),254-257. Retrievedfromhttps://libjournal.uncg.edu/index.php/pcel/article/download/1183/805

Thestudy evaluates the financial literacy programs that are provided aspart of the curriculum. This study considered the higher educationfinancial program and their ability to give financial literacy to thestudents. The study found out that the in order for the financialprogram to be more effective in ensuring that the student havesufficient financial literacy it should adopt a ‘Assessment inAction”. This models enhances the delivery and ensures that theteacher is able to identify areas that need to be addressed in thecurriculum. The study concluded that successful approach toward thefinancial literacy education should be given to the students not onlyion the normal curriculum but also through such ways as onlineinformational services, personal counselling, and workshops,resources. The study makes great contribution to the availableliterature by identifying areas that the curriculum should focus onto ensure there is a high level of financial literacy. I would usethe statements that links higher education to the financialliterature in the research.

Kennedy,B. P. (2013). The Theory of Planned Behavior and Financial Literacy:A Predictive Model for Credit Card Debt? Retrievedfrom http://mds.marshall.edu/etd/480/

Thestudy aimed at evaluating the financial literacy among the collegestudents by looking at their credit card debt. One hundred and fortythree students were subjected to an online survey. The survey soughtto get their attitude toward the subjective norms, credit cards andperceived financial behavior control. The study revealed that thereis a significance relationship between the poor attitude toward thefinancial control behavior and low financial literacy among theundergraduate students. As such, the study concluded that there iscorrelation between those students with low financial literacy andthe level of debt in their credit card. The study contributes in tothe information about developing programs that aimed at improvingpersonal finance behavior for the college students especially theblack students. I would use the findings on the need for a policydesigned to ensure there is customized program that caters for theirfinancial literacy needs of a particular group of students.Specifically, the study will evaluate the need for specific programfor the black male students in order to ensure they have the samelevel of financial literacy as their white counterparts.

Lusardi,A., &amp Mitchelli, O. (2007). Financial literacy and retirementpreparedness: Evidence and implications for financialeducation.&nbspBusinesseconomics,&nbsp42(1),35-44. Retrievedfrom http://www.dartmouth.edu/~alusardi/Papers/Financial_Literacy.pdf

Thestudy evaluated the level of financial literacy and the extent towhich people are able to plan for their preparedness. Mostspecifically, the study sought to investigate causes of financialilliteracy among the population. The study evaluated 1,700 who wereage 51-56 in 2004. Their financial management was evaluated and theywere divided according to the level of education. The study found ahigh correlation between less financial literacy and the poorretirement preparedness. The study also found out that a bigpercentage of the people with poor retirement preparedness do nothave higher education. As such, the study was able to link the highereducation with the level of financial literacy in the individuals.The study makes a major contribution in the existing research asenforces there existing link between higher education and the levelof financial literacy. I would use the analysis in the study thatlinks the individual finance management skills to the life andcollege education.

Ryan,C. L., &amp Bauman, K. (2016). Educational Attainment in the UnitedStates: 2015. Retrievedfromhttps://www.census.gov/content/dam/Census/library/publications/2016/demo/p20-578.pdf

Thisis a report detailing educational attainment level in USA. Thefindings of the report are based on the Current Population Survey(CPS). In essence, the report evaluate the attainment of educationamong the American people by social and demographic characteristicssuch as Hispanic origin, race and sex. The report finds out that theBlack population has a low access to education compare to otherpopulation. 52.9% of the black were found to have college education,compared to 59.2% whites and 63.8 Hispanic whites. In terms of gender56.25 of the black males were found to have college education and51.35 female compare to 67.9% Hispanic white males and 59.2% femalewhite Hispanic. The report concludes that the disparity in access toeducation increase as the level of education increase. I will use thefindings on disparity between Hispanic white access to education andthe black in the study. This study reinforces the existing theorythat the black, especially the black males lag behind their whitecounterparts in terms of college education acquisition.

Wilson,W. J. (2009).&nbspMorethan just race: Being black and poor in the inner city (issues of ourtime). WW Norton&amp Company. Retrievedfrom http://www.prrac.org/pdf/WJWMayJune2009PRRAC.pdf

Theauthor explains the new framework that can be used to understandracial inequality and in the process challenges both the liberal andconservative dogma. He offers timely provocative input to theAmerican race discourse where he applies the framework to threesocial problems that faces the American society: the plight of thelow skilled black males, inner-city ghetto, and the fragmentation ofthe African American family. Even though the author presents theracial inequality discussion is ideologically polarized he offersinsight on the plight of the black American males that include poorfinancial literacy. The study conclude that while the cultural andstructural forces are linked inextricable, a public policy can changeonly the status quo through the instruction reforms that will empowerblack males and equipping them with such skill as financial literacyskill. The study provides important information and draws a pictureof a black American male who is subjected to structural system thatensures they do not have enough financial skills. I would use theillustration of the black male drawn on the study.

References

DeAngelo, L., Franke, R., Hurtado,S., Pryor, J. H., &amp Tran, S. (2011). Completing college:Assessing graduation rates at four-year institutions.&nbspLosAngeles: Higher Education Research Institute, UCLA.

Donohue, J. J. (1988). Determinantsof job turnover of young men and women in the United States: a hazardrate analysis.&nbspResearchin Population Economics,&nbsp6,257-301.

Fisk, P. C. (2015). Gender gap infinancial literacy transcends national borders.&nbspMonthlyLabor Review.

Harper, S. R. (2012). Black malestudent success in higher education: A report from the National BlackMale College Achievement Study.

Harper, S., MacLehose, R. F., &ampKaufman, J. S. (2014). Trends in the black-white life expectancy gapamong US states, 1990–2009.&nbspHealthAffairs, 33(8), 1375-1382.

Hastings, J. S., Madrian, B. C., &ampSkimmyhorn, W. L. (2012).&nbspFinancialliteracy, financial education and economic outcomes&nbsp(No.w18412). National Bureau of Economic Research.

Hsieh, H. F., &amp Shannon, S. E.(2005). Three approaches to qualitative content analysis.&nbspQualitativehealth research,&nbsp15(9),1277-1288.

Jagman, H., Lewis, K., Nunn, B., &ampWalter, S. (2014). Financial literacy across the curriculum (andbeyond) Opportunities for academic libraries. College&amp Research Libraries News,&nbsp75(5),254-257.

Kennedy, B. P. (2013). The Theoryof Planned Behavior and Financial Literacy: A Predictive Model forCredit Card Debt?

Lusardi, A., &amp Mitchelli, O.(2007). Financial literacy and retirement preparedness: Evidence andimplications for financial education.&nbspBusinesseconomics,&nbsp42(1),35-44.

Ryan, C. L., &amp Bauman, K.(2016). Educational Attainment in the United States: 2015.

Wilson, W. J. (2009).&nbspMorethan just race: Being black and poor in the inner city (issues of ourtime). WW Norton &ampCompany.