Thursday, September 18, 2008

The Boston Fed reports on "The Supply of Recent College Graduates"

I haven't had time yet to look closely at this report (PDF format), released today by the Federal Reserve Bank's New England Public Policy Center, but it explores an issue I care about a lot: how can we hold onto a larger share of the smart young people who get educated here.

One take-away: connecting college students with internships and job opportunities here, before graduation day, would be a great strategy.

In the introduction, NEPPC director Robert Tannenwald writes:

    ...Better matching of recent graduates from New England institutions with jobs and employers around the region could be a promising strategy. Stronger partnerships between universities and industry groups, as well as statewide or regional job clearinghouses may provide an opportunity to reach this new generation of workers.

    In a global economy where workers and jobs are mobile, New England will face increasing com-
    petition for the college graduates its institutions produce.


And from Alicia Sasser's report:

    Contrary to the usual litany of reasons offered to explain why individuals leave New England — cold winters, high costs of living — recent college graduates do so primarily for job-related reasons, or to attend or leave college, with very few citing housing as the motivation for their move.

Labels: , , , , , ,

Thursday, August 23, 2007

Zipcar chases college students

From yesterday's Wall Street Journal: Zipcar goes to college. Darren Everson writes:

    Traditional rental-car companies largely avoid the student market because of concerns about liability. According to the Insurance Institute for Highway Safety, the crash rate per mile driven for 16-19-year-olds is four times that of drivers 20 and older. Companies seek to mitigate risk through surcharges and higher minimum age requirements. Hertz's minimum age is 21 in all states except Michigan and New York, where it's 18; Hertz renters under the age of 25 are also subject to an age differential charge. Avis Budget has a minimum age of 21 in most locations and has a $110 per day surcharge in New York state for renters 18 to 24.

    The car-sharing companies, by contrast, are aiming to manage their risk by requiring that 18-to-20-year-old applicants have two years' driving experience and a clean record, and that they be a student at a participating school. There are no additional fees or deposits, although Flexcar also requires parental consent and a copy of the student's current auto-insurance policy showing the policy's limits. Flexcar requires that 18-20-year-olds have $300,000 of additional liability coverage. But otherwise, insurance works the same way for 18-year-old car sharers as it does for older ones: In an accident, the car-sharing company's insurance covers the cost except for a $500 deductible, which applies if the member is at fault.

    The car-sharing companies believe they can tap into the younger market safely because of their business model, which allows them to screen customers by their driving record, and because of the clientele. "The reason we see a difference is because we're a membership-driven system," says Scott Griffith, president and chief executive of Zipcar.

Zipcar's main competitor on campus is Flexcar.

Labels: , , , ,