touch on other possible reasons for this decline in upward mobility and relative income, such as changes in the prospects for career advancement that vary by occupation and location. the second observation is the widening gap in economic status and prospects between those with a college degree and those without one. in the 1960s, well over 90 percent of working - age men held a job, and there was very little difference in employment between those with or without a college degree. while the share of college - educated working - age men with a job has fallen from more than 95 percent in 1967 to around 90 percent in 2017, it has plunged for others. ninety - five percent of male high school graduates were working in 1967, but only about 80 percent of them were working as of 2017. among working - age men without a high school diploma, about 90 percent had a job in 1967 versus a bit more than 70 percent in 2017. for women of working age, the trends are less clear, but those without a college degree are also less likely to work today. research presented this morning will discuss some possible 1 / 2 bis central bankers'speeches explanations for the divergence in employment, income, and other economic prospects between college grads and others. the third observation is that the prospect of moving up the economic ladder depends on factors beyond effort and talent, including your family, the neighborhood you grow up in, and the quality of the primary and secondary schools you attend. your chances for attending college are much better if you are raised in a higher - income household, and that advantage has increased substantially since the 1980s. another factor is geography. some research indicates that economic prospects are better for those who grow up in neighborhoods with less income inequality, less concentrated poverty, and better performing schools. finally, across so many dimensions, we continue to see disparities in economic outcomes by race and ethnicity. these issues are crucial. sound public policies can support families and businesses and help more americans reach and remain in the middle class. i look forward to hearing about your discussions over the next two days, and thank you, again, for your contributions. 12 1 see pew research center ( 2016 ), “ what americans say it takes to be middle class, ” fact tank ( washington : prc, may 6 ). 2 see congressional budget office ( 2018 ), the distribution of national income, 2015 ( pdf ) ( washington : cbo, november ). 2 / 2 bis central bankers'speeches

. in a rising or even stable price environment, these delinquencies would often be cured through refinance or sale of the property, which would result in low levels of actual foreclosure. however, loss of equity and tighter standards on all types of mortgages mean that even prime loans are more difficult to refinance, and weak housing demand has made it difficult to sell. according to the latest data, 25 percent of subprime loans and 13 percent of near - prime loans are now seriously delinquent – that is, more than 90 days past due or in foreclosure. the serious delinquency rate for prime mortgages, at between 3 percent and 4 percent, is much lower than for nonprime loans, but it has almost doubled over the past year. foreclosures have also risen sharply. the available data suggest that lenders initiated 2 - 1 / 4 million foreclosures last year, more than double the number seen in 2006. 2 while the percentage of mortgages entering foreclosure is likely to increase further, the decline in the number of subprime loans means that this percentage will be applied to a smaller base of loans, which will tend to damp the overall number of foreclosures. in the past, about one - half of foreclosures initiated were cured through a repayment plan or some other arrangement, but the remaining one - half resulted in the loss of a home. the share resulting in home loss could well be higher now given the large numbers of distressed households and the bleak underlying economic conditions. so, even if the number of foreclosures initiated begin to drop, we are still likely to see higher levels of property taken into real estate owned ( reo ) as foreclosures initiated earlier are completed and the share of those foreclosures resulting in the loss of a home increases. addressing the problems in housing and mortgage markets several considerations underscore the need for policymakers to take further actions to address the problems in housing and mortgage markets. to begin, the weakness in the housing sector remains a significant drag on the macroeconomy and is reinforcing the strains in the financial system. moreover, the wave of foreclosures has the potential to exacerbate the problems going forward. in past housing cycles, house prices have tended to fall below the level warranted by fundamentals, presumably as weak market conditions led sellers to make