Attending College is Good for the Economy

"The California economy, more so than any other state in the country, depends on a highly educated workforce. Attending college is not only good for students, but essential to the state economy." Abdi Soltani, Executive Director of the Campaign for College Opportunity

 

• High school graduates earn $14,000 more annually than high school dropouts (approximate average).

• College graduates, over the course of their lifetime, earn over $1 million more than their high school dropout classmates.

• California's economic success relies heavily on its highly educated workforce.

• Without an adequate, highly educated workforce, California risks negative economic impacts far beyond the immediate effects on workers and their employers.

• Small changes in the proportion of the workforce with higher education result in substantial economic impacts.

• A 1% increase in the share of population with a Bachelor's degree, combined with a 2% increase with an Associate degree or some college, results in:
  • $20 billion in additional economic output;
  • $13 billion in value added;
  • $1.2 billion more in state and local tax revenues annually;
  • 174,000 new jobs created

• Skilled workers generate activity in everything from shipping and warehousing to consumer spending.

• Higher quality education means:
  • Increased U.S. economic growth and worker productivity
  • More career opportunity
  • Improved work conditions and higher salaries
  • Better health care and longer life expectancy
  • More involvement in civic life, including voting and volunteering
  • Better quality of life now and for future generations

Bill and Melinda Gates Foundation, "The Challenge Facing Our Nation," 2006

Report from the California and Business Roundtable and the Campaign for College Opportunity, 2006

 

 

                                              Updated 03/07/11