North Star Group, Inc.

19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

Breaking the Cycle: Literacy, Economic

Mobility, and the Case for Serenity Village in

Palestine, TX

Executive Summary

This paper examines the critical relationship between literacy rates and economic outcomes in

Palestine, Texas, demonstrating why Serenity Village's integrated approach to workforce housing

and educational support represents a vital investment in breaking cycles of intergenerational

poverty. Drawing from national research and local demographic data, we present a compelling

case for addressing literacy challenges as a core component of any eﬀective workforce housing

initiative.

1. Palestine's Economic Reality: A Community in Need

Palestine, TX faces signiﬁcant economic challenges that impact its 18,000+ residents. Current

data reveals:

● Median Household Income: $46,228, which is signiﬁcantly below the Texas state

average of $76,292 (39% lower) (World Population Review, 2025)

● Poverty Rate: 18.1% of residents live below the poverty line, compared to 14.0% statewide

(City-Data, 2024)

● Educational Attainment Gap: Only 16.3% of Palestine residents hold a bachelor's degree

or higher, approximately half the state average of 33.1% (Point2Homes, 2021)

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● Workforce Proﬁle: Palestine's economy relies heavily on sectors that typically employ

workers with lower educational attainment, with white-collar workers comprising 69.69%

and blue-collar employees 30.31% of the working population (Point2Homes, 2021)

These statistics reveal a community facing signiﬁcant economic challenges, with many residents

struggling to achieve ﬁnancial stability and upward mobility.

2. The Literacy-Income Connection: National Evidence

Research consistently demonstrates a powerful correlation between literacy levels and economic

outcomes:

● Income Disparity: The average annual income of adults who read at a sixth-grade level or

above is approximately $63,000, while those with lower literacy skills earn signiﬁcantly

less (Barbara Bush Foundation for Family Literacy, 2020)

● Poverty and Literacy: Approximately 43% of adults with the lowest literacy levels live in

poverty, compared to only 4% of those with the highest literacy skills (Michigan Journal of

Economics, 2023)

● Economic Impact: Low literacy costs the U.S. economy approximately $2.2 trillion

annually—about 10% of GDP—in lost workforce productivity, healthcare costs, crime, and

lost tax revenue (Gallup/Barbara Bush Foundation, 2020)

● Workforce Limitations: Among adults with low literacy, 88% are in the workforce,

indicating that many employed individuals still struggle with basic literacy, limiting their

career advancement and earning potential (Above and Beyond Therapy, 2024)

3. Literacy in the Workplace: Essential for Economic Mobility

The connection between literacy and employment is particularly relevant for the types of jobs

available in Palestine:

● Minimum Requirements: Basic literacy and math skills are considered "very important" for

warehouse positions, as workers must "quickly understand written instructions and

packing slips, while accurately counting items" (Church & Dwight Careers, 2023)

● Advancement Barriers: Even when employed, individuals with limited literacy face

signiﬁcant barriers to promotion and career advancement—57% of American adults read

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

Bios

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below a sixth-grade level, severely limiting their ability to progress within their careers

(ProLiteracy, 2024)

● Employer Costs: One-third of employers report that their average employee lacks

suﬃcient literacy skills to perform their current job eﬀectively, and 40% state that low

literacy is widespread in their companies (ProLiteracy, 2024)

● Productivity Impact: Employers surveyed estimate they will lose $46 billion in revenue

over a single year as a direct result of low literacy among their workforce (ProLiteracy,

2024)

4. The Intergenerational Cycle: How Low Literacy

Perpetuates Poverty

Low literacy creates a persistent cycle that impacts multiple generations:

● Word Gap: Children from low-income families hear approximately 30 million fewer words

by age 4 compared to children from higher-income families (Words Alive, 2018)

● Educational Achievement Gap: Students from low-income families with lower literacy

rates fall signiﬁcantly behind their peers—eighth graders from the lowest income group

demonstrate literacy skills comparable to high-income third graders, a ﬁve-year

achievement gap (Michigan Journal of Economics, 2023)

● Limited Parental Support: Adults struggling with literacy cannot eﬀectively support their

children's education, perpetuating the cycle into the next generation (ProLiteracy, 2024)

● Long-term Outcomes: Almost 70% of low-income fourth grade students cannot read at a

basic level, setting them on a path toward limited economic opportunities (National

Literacy Institute, 2024)

5. Why Traditional Housing Programs Fall Short

Traditional workforce housing initiatives address only shelter needs while ignoring the underlying

literacy issues that keep families in cycles of poverty:

● Housing Without Support: Simply providing aﬀordable housing without addressing the

skills gap fails to create pathways for economic mobility

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

Bios

______________________________________________

● Mismatched Skills: Even when housing is aﬀordable, residents without adequate literacy

skills remain trapped in low-wage jobs without advancement potential

● Untapped Potential: Without literacy support, employers cannot promote from within,

losing potential talent and increasing turnover costs

● Community Impact: The resulting economic stagnation aﬀects the entire community

through reduced tax revenue, higher social service costs, and limited business growth

6. Serenity Village: An Integrated Solution

Serenity Village's innovative model addresses both housing and literacy needs:

● Aﬀordable Housing: Quality workforce housing designed speciﬁcally for working families

in Palestine's key employment sectors

● Adult Literacy Programs: On-site educational support targeting the speciﬁc literacy

needs required for career advancement

● Early Childhood Education: Programs designed to break the cycle of low literacy in the

next generation

● Employer Partnerships: Collaboration with local businesses to create advancement

pathways tied to literacy improvement

7. Return on Investment: The Economic Case

Investing in combined housing and literacy programs generates substantial returns:

● Individual Beneﬁts: For every year of additional education, earnings increase by 8-12%

● Business Beneﬁts: Companies that invest in employee literacy report 22% higher

productivity, 41% fewer quality errors, and 14% better attendance

● Community Beneﬁts: For every $1 invested in adult literacy, communities see a $7.14

return through increased earnings, tax contributions, and reduced dependency on social

services

● Long-term Impact: Children whose parents improve their literacy skills show 25% better

educational outcomes

Conclusion

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

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The data makes a compelling case for Serenity Village's integrated approach. By addressing both

housing and literacy needs, this initiative oﬀers Palestine a powerful tool for breaking cycles of

poverty and creating sustainable economic mobility for its residents. The evidence is clear:

investments in literacy yield substantial returns for individuals, businesses, and the community as

a whole.

References

Above and Beyond Therapy. (2024). 45 US Literacy Statistics Exposed.

Barbara Bush Foundation for Family Literacy. (2020). New Economic Study Finds the U.S. Could

Be Losing $2.2 Trillion Annually Due to Low Adult Literacy Rates.

Church & Dwight Careers. (2023). What Skills Do You Need to Work in a Warehouse?

City-Data. (2024). Palestine, Texas (TX) poverty rate data - information about poor and low-income

residents living in this city.

Michigan Journal of Economics. (2023). The Relationship between Socioeconomic Status and

Literacy: How Literacy is Inﬂuenced by and Inﬂuences SES.

National Literacy Institute. (2024). Literacy Statistics 2022-2023.

Point2Homes. (2021). Palestine, TX Household Income, Population & Demographics.

ProLiteracy. (2024). Future of Work: Building a Stronger Workforce Through Literacy.

Words Alive. (2018). What is the Connection Between Literacy and Economic Development?

World Population Review. (2025). Palestine, Texas Population 2025.

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com