What is the Economic Impact Study?
EMSI’s Economic Impact Study (EIS) estimates the impact of colleges and universities in terms of job and income formation, higher earnings captured by students, returns to taxpayers, and a broad collection of social benefits and avoided costs.
The study—available for 2- and 4-year institutions—is ideal for demonstrating your institution’s economic contributions to the public, legislature, media, and others. Since 2000, it has helped more than 50% of the nation’s community colleges garner expanded state and local support, develop new capital projects, and increase grant funding. This is because data-driven measures on economic impacts from several different perspectives far outweigh anecdotal evidence.
What makes it so unique?
The study considers the impact of your institution on income formation, increased regional earnings, returns to taxpayers, and a broad collection of social benefits and avoided costs. We go beyond the standard multiplier analysis to measure the impacts of the institution not only as an employer, but as an institution that actively promotes and improves the quality and quantity of the labor market.
Click here for answers to frequently asked questions about EMSI's EIS.
How to use the study
- Educate the public on the positive contribution of your institution on the region and the state.
- Present the facts to funders, governing bodies, taxpayers, and the media regarding the role of your institution on economic growth and community revitalization
- Generate public support based on the benefits of your institution.
- Market your institution to students by showing them the significant positive returns they will receive from a quality education.
Kent State Economic Impact Study: EMSI conducted an economic impact study of Kent State University and its eight-campus system. The report assessed the economic contributions of Kent State alumni and the university itself, as well as returns to taxpayers, and other social benefits. The results showed that Kent State adds approximately $1.9 billion in increased average income per year, equating to 1.5% of the total Northeast Ohio economy.
Housatonic Community College: Read how a Connecticut community college communicated its value and helped revitalize the state’s poorest city.
What does the study include?
ECONOMIC GROWTH ANALYSIS
- Institutional Operation Effects: The added income generated in the region as a result of your institution’s payroll and its purchases for supplies and services
- Student and Visitor Spending Effects: Impacts associated with students and visitors who come from the outside the region and spend money at local businesses
- Student Productivity Effects: The impacts of your institution’s alumni who continue to work in the region and expand the economy through their added skills and increased productivity.
- Student Perspective Analysis: The benefits received by students as a result of their education.
- Social Perspective Analysis: The benefits to the public measured in terms of added state income and avoided social costs due to improved health, lower crime, and reduced welfare and unemployment.
- Taxpayer Perspective Analysis: The state and local taxpayers’ return on investment in terms of a reduced tax burden and avoided costs to government.