Education and the Economy

An estimated 1.3 million students across all 50 states and the District of Columbia dropped out of high school in 2010. Cutting in half the number of high school dropouts for this single high school class could EDUCATION and the ECONOMY result in tremendous economic benefits. The Alliance for Excellent Education estimated the potential impact these 650,000 "new graduates" would have on national, state, and local economies, and how those benefits might differ across different race and ethnic groups. EARNINGS INVESTMENTS SPENDING REVENUES HOMES VEHICLES JOBS GDP $7.6 billion $2.0 billion $5.6 billion $713 million $19 billion $741 million 54,000 $9.6 billion Additional estimated spending new graduates would spend with a high school degree. Increase in Gross Domestic Product owing to increases in spending, investment, and jobs from these new graduates. Total estimated Total estimated amount Estimated increase in Total amount of home Estimated amount of total Number of new jobs resulting from increases in savings and investment by new graduates. vehicle purchases in an Increase In average earnings graduates would receive with a of new investment new purchases new graduates would likely make by the midpoint of their careers. state tax revenues graduates would make in an average year. originating from higher wages and increased spending from the class of new graduates. average year by new graduates. high school degree. RESULTS by RACE Improving the aducational cutcomea of all students particulary membern of mcial and ethnic minorities can significantly boost the national mconomy and conomius of the communities in which they livu. For uumple, if juat half of the over 333,000 black studenta who drupped out of the Class of 2010 had graduwted, these new groduates would likely carn an additional $1.7 billion eoch year compared with what they would eam without a high school diploma. (Billions af dollars: jabs in thousands) Number of Dropouts in the Class of 201101 Total: 1.3 million Hispanic: 363,900 Native American: 24,700 4.0 2.5 035 10.0 5.0 30 3.4 1.1 0.30 0.25 25 2.0 8.0 3.0 0.25 021 0.8 0.22 0.20 20 0.18 1.5 6.0 3.0 0.20 15.0 2.0 0.15 15 0.15 43 12.9 1.0 2.0 04 0.4 0.10 10 0.10 1.0 0.5 2.0 1.0 0.05 0.05 0,04 C06 01 02 04 0.7 0a 03 0.0 0.0 0.00 0.0 0.00 0.0 ASIAN ACK ASAN RESULTS by STATE Educution rulorm can be u kuy atrutegy for atrengthening atate uconomius, but benefita from higher high achool graduation rutes vury crosa the 50 atutes and the District of Columbia. In per capita terms, California and Texas ore eaimaned to expericence the highest economik growth ocross the 8 measures. However, ocher states with smaller populations-such as Alaska, Georgia, Nevade, North Carolina, and South Carolina-are also estimated to experience fester economic growth. (Thousands of per capita dollars; jobs in numbers) Higher high schoel graduntion rates can yield different benefits to different localities. The Alliance for Excellant Education eatimated the uconomic benufita thet would accrue to moru than 200 luculitien if high school dropout rate were reduced. Bulow aru the ustimutud economic benefita thet would result from reducing the dropout rete by half for 52 lecalities thet have ot least 1 million people. RESULTS at the LOCAL LEVEL (Thousancs of per capita dollars; jobs in numbers) 24 24 37 22 38 30 28 39 14 30 22 34 45 32 25 32 29 29 25 14 18 34 26 26 32 20 48 33 22 36 23 23 30 16 23 31 32 25 27 16 23 17 26 34 18 19 26 12 7 10 10 10 12 10 13 17 34 17 27 16 28 23 19 29 10 22 16 24 32 22 22 19 25 a5 22 17 17 22 23 24 18 15 19 11 13 15 25 19 15 17 12 17 16 19 20 12 17 13 20 16 13 14 4 1 2 2 2 2 51 85 76 102 35 89 52 142 65 56 54 57 68 85 57 124 141 111 67 106 91 31 53 45 108 60 47 39 131 113 19 85 50 40 43 55 71 61 49 76 25 90 31 51 78 77 35 38 2 2 2 2717 S100 1827 1829 43 1342 1372 770 1765 339 n 804 781 1828 707 655 666 350 386+ 473 658 374 310 372 213 490 556 473 532 478 595 271 363 509 341 297 277 358 338 289 260 185 178 136 244 215 301 188 169 236 51 29 51 63 42 34 36 31 66 33 41 35 53 18 39 32 44 42 34 27 20 24 27 35 36 28 31 48 31 30 39 22 32 30 22 30 22 35 45 24 25 Aan C aylanhoteyp 00000000 New York, NY Los Angeles, CA NATINE AMERICAN XI selled Philadelphia, PA Houston, TX Miami, FL Washington, DC Atlanta, GA Boston. MA NATIVE AMERICAN Detroit, MI Phoenix, AZ San Francisco, CA Riverside, CA Seattle, WA NW 'sijodeauuw San Diego, CA St. Louis, MO NATNE AMESICAN ampa Bay, FL Baltimore, MD Denver, CO Pittsburgh, PA Portland, OR Cincinnati, OH NATIVE AMERICAN Sacramento, CA Cleveland, OH Orlando, FL San Antonio, TX Kansas City, KS Las Vegas, NV San Jose, CA Columbus, OH NATIVE AMICAN Charlotte, NC Indianapolis, IN HISPANIC Austin, TX Virginia Beach, VA Providence, RI Nashville, TN NATIVE AMERUCAN IM aaynemN Jacksonville, FL Memphis, TN Louisville, KY Richmond, VA Oklahoma City, OK Hartford, CT ATIVE AMERICAN New Orleans, LA Birmingham, AL Salt Lake City, UT HISPANK Haleigh-Cary, NC AN 'Ojeing Rochester, NY Tucson, AZ