In fall 2009, the Alliance for Excellent Education (All4Ed) partnered with Emsi in a study to figure out how high school dropout rates affect the national economy. Using an updated version of the dropout study model developed by Emsi, All4Ed has released a new version of that study—and the results are no less eye-opening.
According to All4Ed, 1 in 5 students drop out of high school, giving the US an 80% graduation rate, which is the highest on record. With the new interactive map, All4Ed visualizes how a 90% graduation rate for the class of 2013 would change not just the national economy, but state and metropolitan economies as well.
That extra 10% of students graduating means more money in local economies. All4Ed refers to the boost local economies could see as the Graduation Effect. The map doesn’t cover every metropolitan area, but new data is added as it becomes available.
With a 90% graduation rate, the nation as a whole would see:
- 65,150 new jobs
- $11.5 billion increase in gross domestic product
- $7.2 billion increase in annual earnings
- $5.3 billion increase in annual spending
- $1.1 billion increase in federal tax revenue
The image above shows data for all of Texas. It’s possible to narrow that data down to specific metros within Texas. If Texas had a 90% high school graduation rate, households within the state would spend around $500 million more annually—a significant boost to the state’s economy.
All4Ed uses this data, and partnerships with organizations like Communities in Schools, to highlight the importance of high graduation rates. In short, more high school graduates means a stronger economy for everyone.
For more information about the dropout model, contact us. For more on Emsi’s custom projects, check out our consulting page. Follow Emsi on Twitter (@DesktopEcon) or check us out on LinkedIn and Facebook.