Human capital is the economic value of a worker’s skill set: education, experience and other abilities. Investments in workers raise their quality, which leads to improvements in productivity.
Regions competitive in the 21st-century economy are comprised of competitive companies, which in turn consist of competitive individuals. The more highly skilled a worker, the higher is the worker’s productivity. The educational attainment and skills of workers are more important than at any time in the past. Thus, a region’s educational infrastructure and the educational achievement of its residents are key components of regional competitiveness. Higher education in particular provides benefits not only to those individuals obtaining this advanced education, but to society as a whole.
University Economist Reports
Economic Growth: The Importance of Education and Technological Development (PDF), January 2009
The importance of economic growth to the standard of living and individual well-being. Education and research and development are of particular importance to productivity gains and overall economic growth.
The Societal Benefits of Higher Education (PDF), April 2008
A short summary of the societal benefits specific to Arizona, including an estimate of the benefits of increasing the percentage of university graduates.
Quantitative Examples of the Financial and Economic Benefits of Higher Education (PDF), March 2008
Looks at individual financial benefits, social financial benefits, and economic benefits of university research.
The Contribution of Universities to Regional Economies (PDF), March 2008
Presented to the National Association of State Universities and Land-Grant Colleges, this report addresses three ways that a university contributes to its local community: traditional economic impact, benefits to individuals and society, and creation of knowledge.
Educational Attainment in Arizona Compared to All States (PDF), November 2005
A summary of educational attainment nationally and by state, with a particular focus on those active in the labor force.
Higher Education Enrollment and Finance in Arizona Compared to All States (PDF), October 2005
An analysis of public support for higher education nationally and by state.
The Value of Higher Education: Individual and Societal Benefits (PDF), October 2005
An in-depth look at the benefits to individuals, the economies where educated individuals work and live, and society in general of enhanced educational attainment.
Five Reasons to Skip College: A Reply (PDF), May 2006
A response to an article at Forbes.com that questioned the value of higher education.
The Economics of Early Care and Education in Arizona (PDF), March 2004
A discussion of the child care industry and its economic impact, a literature review of early care and education, and the costs and benefits of an early care and education program in Arizona.
Related Articles and Reports
Get Ready for Tough Choices or Tough Times, Educators Warn, Knowledge@W. P. Carey, February 14, 2007
Education Pays: The Benefits of Higher Education for Individuals and Society (PDF), College Board, 2007
Estimating the Social Return to Higher Education: Evidence from Longitudinal and Repeated Cross-Sectional Data (PDF), Journal of Econometrics, 2004
Workers’ Education, Spillovers and Productivity: Evidence from Plant-Level Production Functions, University of California, Berkeley, January 2004