1. The Impact of Education on the Massachusetts Economy
AF 603

2. When my father got out of college in 1928, high school was all the average person needed to get a good job and support a family.
Those that could afford to go to college were assured of a superior standard of living. My uncle went to BC graduating in Tuition for his final year was $300 including books!!!

3. There are a number of characteristics of the Massachusetts Economy that we have already talked about already. We are a high income state, we are a high cost state, we are a slow population growth state, but most of all, we are a knowledge state.

4. A High Income State Per Capita Personal Income, 2008 State Rank
District of Columbia
62,092 1
Connecticut
54,117 2
New Jersey
49,194 3
Massachusetts
49,082 4
New York
47,385 5
Maryland
46,021 6
Wyoming
43,226 7
California
41,571 8
New Hampshire
41,512 9
Virginia
41,347 10

5. A High Cost of Housing State

6. Low Population Growth State

7. Low Employment Growth State

8. Highly Educated Workforce

14. Massachusetts has more 4 Year Colleges & Universities than any states but NY, TX and PA. (74). Another 50 two year schools.
Billions of dollars of tuition money come in to the state from all over the world because of these private and public schools.

15. Massachusetts has the highest percentage of enrollees in Private Higher education in the country. Some 54% of people entering college go to a private college.
This causes a perception that Public Higher Ed is under-funded but the amount spent per student is around the national average.

16. Another source of income to the state is the endowment of these schools. Harvard has $36 B. MIT has $10B. BC,BU Wellesley, Smith, Williams and several others each have about $1.5B. NU has $675 and little ol’ UMass has about $350M.

17. Then there is tuition…
And room and board…
And off-campus rent…
And food…
And furniture…
And clothes…
And…you get my point!!!

19. Average Income Associate Degree $47,600 Bachelor’s Degree $65,600
Master’s $78,600
Doctorate >$100K
No College $37,000
US Census Bureau 2006

20. This shows that people NEED education
This shows that people NEED education. If you look at it in terms of supply and demand, there is more education demanded than supplied.
A degree shows that someone is educatable and may have certain skills. It does not mean someone is polished coming out of school

21. But higher incomes have drawn more educated people to Massachusetts through the years. Industries that have been here and are here now are often high paying and progressive. Often they were very technical. The industries that are here and dominant generally require an educated workforce.

22. It became a reality that you HAD to have a College Degree and frequently an advanced degree to get ahead in these industries. This created greater demand for space at colleges and universities, which caused colleges to hire more faculty and staff and build more buildings. and of course that means higher tuition.

23. And of course that means higher tuition
And of course that means higher tuition. If demand went down, like so many other things, tuition would go down. Instead, people know they need more education to make a better living so they scrimp and save and borrow and beg to be able to pay for it.

24. Women are now more highly-educated than men.