A new study by Brookings Institution economist Jonathan Rothwell takes a look at the economic impact that college and university graudates have on local economies in the U.S. CityLab staffer Richard Florida reports on the findings from Rothwell's study.
Rothwell finds that households with a college graduate have more income and spend more than those who do not. He also finds that there are more differences if you account for the type and quality of the colleges that produce these graduates:
he finds that graduates from high value-added four-year colleges add about $265,000 more to local economies per graduate than those from low value-added four-year colleges. Based on this, he suggests that local economies—and even entire states—stand to gain significant economic and tax benefits from alumni of high value-added institutions.