Study: State University System degree can mean huge boost in lifetime earnings
(糖心视频Org.com) -- A new economic study suggests that having a degree from one of Florida鈥檚 11 state universities can be a financial lifesaver 鈥� equivalent to more than $1 million in a worker鈥檚 lifetime earnings.
The State University System鈥檚 Board of Governors requested the economic study to update earlier figures, said Alan Hodges, an extension scientist with the University of Florida鈥檚 Institute of Food and Agricultural Sciences.
The team included economists from UF and Florida State University.
鈥淭he value of a university degree is, in some cases, worth millions of dollars over a person鈥檚 working lifetime,鈥� Hodges said. 鈥淎nd not only does it mean higher earnings, but also a greater likelihood of employment 鈥� so all of this has real meaning for the current employment crisis.鈥�
The study found that the 11 public universities had nearly a $52 billion value-added economic impact on the state鈥檚 economy during the 2009-2010 fiscal year, which ended in June 2010. That represents a little more than 7.25 percent of the state鈥檚 total economic activity and includes regional multiplier effects produced by government and household spending by those who work for, attend or conduct business related to the State University System.
The economists estimated that the universities and related businesses are responsible directly and indirectly for about 771,000 jobs in the state, or 7.9 percent of the state鈥檚 workforce.
The study did not include spending on college sports events, nor did it include spending by university technology 鈥渟pinoff鈥� companies.
The salary gap between college degree holders and those with high school diplomas was not unexpected, but the results were dramatic nonetheless, Hodges said.
Using data from the state鈥檚 Department of Education, the study found these average annual earnings for Florida high school and university graduates in fiscal year 2009-10 who were employed in Florida in 2010: those with high school diplomas, $20,924, bachelor鈥檚 degree, $36,520; master鈥檚 degree, $58,698; doctorate, $66,743, and professionals, such as physicians or attorneys, $70,716.
Extended to 30 years and accounting for typical pay increases, the difference between those with high school diplomas and higher degrees remained vast, with bachelor鈥檚 degree recipients outpacing high school graduates by more than $550,000; master鈥檚 degrees, more than $850,000; doctorates, more than $1.3 million and professionals, more than $1.8 million.
And employment potential for university graduates at all levels was far higher than for those with high school diplomas, Hodges noted.
鈥淩ight now, the unemployment rate in Florida is about 10 percent,鈥� he said. 鈥淏ut for people with a college degree, it鈥檚 about half that. And for people with only a high school degree, it鈥檚 double that, close to 20 percent.鈥�
Besides UF and FSU, the state鈥檚 public universities include the University of West Florida, Florida Agricultural and Mechanical University, University of North Florida, University of Central Florida, University of South Florida, New College of Florida, Florida Gulf Coast University, Florida Atlantic University and Florida International University.
The research team also included Thomas Stevens and Rodney Clouser, both from UF鈥檚 Food and Resource Economics Department, and Julie Harrington, Martijn Niekus and Keith Baker, from FSU鈥檚 Center for Economic Forecasting and Analysis.
Provided by University of Florida
