Delivering the commencement address last weekend at the evangelical Liberty University, Mitt Romney naturally stuck primarily to “family values” and religious themes. He did, however, make one economic observation that intersects with some fascinating new research. “For those who graduate from high school, get a full-time job, and marry before they have their first child,” he said, “the probability that they will be poor is 2 percent. But if [all] those things are absent, 76 percent will be poor.”
These are striking numbers, but they raise the age-old question of correlation and causation. Does this mean that the representative high-school dropout would be doing much better had he stuck it out in school for a few more years? Or is it instead the case that the population of high-school dropouts is disproportionately composed of people who have attributes that lead to low earnings?
Good questions. Some answers.
