Montana Business Quarterly, Winter 2013
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y ^ k ' f \ "*" I ‘^ ^ y ^ V .--^ F A J r \S i r A r ^ V - - m / Ml -*■ ml ^^m ’fjM K riP^kV ) ':«*V .^’.< tH ii£^i».v “ JM M KO^lMwffA. gi^ n?^ 02 ^ \aiB (Sgyi^ Inside: - Women's Employment & W a q e i^^^M B y V w ^:1'^ ^ A - Economic Summit 201 - Footprint of the Feds ■ ;v • • o, - Home-based Businesses - Health Care Navigators - MBQ Index \ BUREAU OF MESSAGE FROM BRER BUSINESS DIRECTOR PATRICK BARKEY E j ECONOMIC E l RESEARCH The Bureau of Business and Economic Research brings in the new year with the appointment of Bill Whitsitt as the new ABOUT THE BUREAU OF BUSINESS Executive in Residence and AND ECONOMIC RESEARCH visiting professor in Public Affairs Management. The Bureau of Business and Economic Research has Been providing information aBout Montana’s Whitsitt joins BBER after state and local economies for more than 50 years. a long and distinguished Housed on the campus of the University of career in public affairs Montana-Missoula, the Bureau is the research and and government relations public service'branch of the School of Business on the exploration and Administration. On an ongoing Basis, the Bureau production side of analyzes local, state, and national economies; the oil and gas industry. He served most recently as executive provides annual income, employment, and population vice president for public affairs at Devon Energy Corporation forecasts; conducts extensive research on forest of Oklahoma City, one of the largest U.S. exploration and products, manufacturing, health care, and Montana production companies. Kids Count; designs and conducts comprehensive His arrival is expected to have an immediate impact on the survey research at its on-site call center; presents BBER’s new Natural Resources and Energy Research Program. annual economic outlook seminars in cities His expertise, experience, and connections in the oil and gas throughout Montana; and publishes the award industry represent an enormous injection of talent for this winning Montana Business Quarterly. important new research program at a time when the effects of the revolution in shale oil and gas production are reverBerating BUREAU ADVISORY BOARD throughout the economy. JOHN GOODNOW ■ Launched in January 2013, BBER’s Natural Resources and Benefis Health System, Great Falls ^ EneIgy Research program examines the trends, issues, and factors JAMES GRUNKE affecting the outlook for one of the most dynamic and highest Missoula Economic Partnership, Missoula ■ ■ paying sectors in Montana’s economy. DIANA HOLSHUE Whitsitt also will be availaBle to assist the School of Business Federal Reserve Bank of Minneapolis, Helena Administration and its Department of Management and SUE LAREW Marketing on a range of teaching and special projects. Please join First Interstate Bank, Missoula us in welcoming him. HEATHER MCDOWELL PPL Montana, Billings Sincerely, TOM RICHMOND Montana Board of Oil and Gas, Billings Q sJbJt, M- CHUCKY ROADY F.H. Stoltze Land and LumBer Co., ColumBia Falls Patrick M. Barkey Director, Bureau of Business and Economic Research UNIVERSITY OF S M O N T A N A School of Business Administration To suBscriBe, go to www.BBer.umt.edu/mBQ MONTANA BUSINESS QUARTERLY LARRY GIANCHETTA Dean, School of Business Administration PATRICK M. BARKEY Director, Bureau of Business and Economic Research SHANNON FURNISS Editor CHRISTINA HENDERSON Marketing Director DEB SCHMAUS PuBlications Assistant CONTENTS THE ECONOMIC STATUS OF WOMEN IN MONTANA BY CELIA C. WINKLER AND KATHY J. KUIPERS 2 MONTANA SOLUTIONS FOR MONTANA JOBS BY SENATOR MAX BAUCUS 8 THE ECONOMIC FOOTPRINT OF THE FEDERAL GOVERNMENT IN MONTANA BY PAUL E. POLZIN 14 WHO WORKS FROM HOME IN MONTANA? BY JAMES T. SYLVESTER 19 NAVIGATING THE HEALTH INSURANCE MARKETPLACE BY PAUL E. POLZIN 20 MBQ INDEX, 2009 - 2013 22 Cover design By Gwen LandQuist Printed By the University of Montana Printing Services The Montana business Quarterly (ISSN0026-9921) is published four times a year By the Bureau of Business and Economic Research and is a service o f the University of Montana- Missoula. The suBscription rates for the Quarterly arc $35 per year, $65 for two years, $90 for three years, and $10 per issue. Periodical postage is paid in Missoula, MT 59812. POSTMASTER: Send address changes to the Montana business Quarterly, Bureau of Business and Economic Research, the University o f Montana, Missoula, MT 59812. Contents of the Quarterly reflect the views and opinions of the authors and do not necessarily represent those of the Bureau, the School of Business Administration, or the University. The contents of this publication may be reproduced without the consent of the publisher and/or authors. Proper credit should Be given to thtQuarterly and its contributors for the use of any published material. The Montana business Quarterly is availaBle on microfilm from University Microfilms, 300 N. ZeeB Rd., Ann Arbor, MI 49106. Reprints of the articles are not availaBle, But additional copies of the jQuarterly can Be secured at $10 per copy. All inquiries regarding subscriptions, publications, etc., should Be addressed to: Montana business Quarterly, Bureau of Business and Economic Research, the University of Montana, Missoula, MT 59812,406-243-5113. The Economic Status of Women in Montana How Far Have We Come Since Montana Elected the First Congresswoman? by Celia C. Winkler and Kathy J. Kuipers ts been nearly 100 years since Montana elected the womens paid work has become a necessity, as the purchase first woman to Congress. When Jeannette Rankin was of a home requires more than one median-level income, But Ielected in 1916, not all women had the right to vote. women continue to be underpaid for the value of their work. Montana was one of the states where women could vote in some form, and one of the Congresswomans goals was to Women’s Earnings “Be remembered as the only woman who ever voted to give At $31,067, Montana women working full time, year-round women the right to vote.” have the fourth lowest median annual earnings of any state in the While women have made great strides since Rankins nation. Their earnings are more than $6,000 below the $37,133 time, they do not share equally in the economic well-being level for women across the United States. Median annual of the state. The wage gap shortchanges women, regardless earnings for men in Montana also are lower than the United of education, age, or race/ethnicity. As it has since the dawn States as a whole, $41,635 compared to $46,993. That is, of the industrial age, poverty disproportionately affects Montana men earn 89 percent of the national mens average women and children, particularly female-headed households, income, while Montana women, working full time, year- American Indian and Hispanic/Latina women, and older round, earn 84 percent of the national average of womens women. While women now participate equally in the wage wages and 66 percent of the national average of mens wages. economy and earn a majority of all Bachelors degrees, this has Total median annual earnings for women in Montana in not led to financial eQuality. 2011 (including part-time and part-year employment) were Womens work, in the home and in the laBor market, has $19,614, third from the bottom in the nation, above only always been an indispensable factor in the economic health Idaho and Utah. This figure is significant Because it indicates of the nation and Montana. In the last few decades, however, the impact of underemployment on total earnings. 2 M o n t a n a B u s i n e s s Q u a r t e r l y /W i n t e r 2 0 1 3 The Wage Gap Earnings and Earnings Ratios In the United States, womens wages continue to lag by Educational Levels Behind mens wages. In 2011, the median wages of women Increased educational levels for both men and women who worked full time, year-round were only 78.8 percent of result in higher wages, But women benefit less than men, even men’s, up from 76.7 percent in 2005. However, in 2011, the though women seek college education at the same or greater female/male full-time earnings ratio in Montana was 74.2 rate than men. In the nation, from 1970 to 2009, women percent, up from 70.4 percent in 2005, as shown in Figure 1. caught up with men at high school, college, and masters level Even among its comparators in the Rocky Mountain graduation rates (Figure 3, page 4). region, Montana ranks third from the Bottom in its female/ In Montana, women have sought higher education to a male earnings ratio (Figure 2). much greater extent, with 21 percent oBtaining a bachelors The earnings ratio Becomes even starker when we focus degree compared with men’s 18.6 percent. At the master’s on Montanas American Indian residents. In Montana, 6.4 and professional level, 7.4 percent of women oBtain a degree percent of women are Native American/Alaskan Native. In all compared with 7.9 percent of men. categories, American Indians earn a fraction of the earnings Women’s increased education does not necessarily translate of the rest of Montanas population, with American Indian to higher earnings, compared with male earnings. In fact, women earning 93 percent of the income earned by the total women with a high school education earn less than men population of Montana women, and American Indian men without, and the same is true for each level of education, earning approximately 85 percent of the earnings of total with the exception of a doctorate, where the median income Montana male population for full-time, year-round work.