Study: Higher Education Means More Hawai’i Jobs

By Wendy Osher

Image courtesy Alliance for Excellent Education.

A new study released today shows the expanded economic benefits of ensuring education beyond high school for Hawaii’s most at risk students.

“Just crossing the finish line and earning a high school diploma is no longer enough in today’s global economy,” said Bob Wise, president of the Alliance for Excellent Education and former governor of West Virginia.

While cutting the state’s dropout rate in half would have tremendous benefits, the new study shows that efforts to increase post-secondary completion rates would have additional benefits for Hawaii’s economy.

According to the report, released by Alliance for Excellent Education, Hawaii’s economy could reap additional advantages in the form of job creation, increased earnings, and a boost to tax revenue for the state if both areas are addressed.

If the state cut its dropout rate in half for one class of dropouts, the study says the state would likely benefit with as much as $19 million in increased earnings for individuals, 150 new jobs, and a $24 million increase in the gross state product.

The study found that only 28% of Hawaii’s new graduates would likely go on to earn a college degree or credential.

If 60% of the Class of 2010’s new graduates had gone on to earn a college degree or credential, the report states, impacts would likely be $33 million in additional earnings, and $24 million in increased spending. In terms of job creation, the additional spending could support as many as 250 new jobs, increase the gross state product by $42 million, and result in $2.3 million in increased state tax revenue.

The numbers were based on 7% of the that group earning a four-year degree, 25% earning a two-year degree, and 28% earning vocational certificates.

“Today, a high school diploma must be the jumping-off point—the ticket to the additional education students need to compete for and land good-paying jobs,” said Wise.

The Alliance for Excellent Education works to improve national and federal policy so that students can achieve at high academic levels and graduate, ready for success in college, work, and citizenship in the twenty-first century.

The complete results from the economic analysis study for the state of Hawaii and the nation as a whole are available at http://www.all4ed.org/publication_material/EconStatesPostsecondary.

***Supporting information courtesy Alliance for Excellent Education.