This article summarizes an October 2006 conference held by the Federal Reserve Bank of Chicago and the Midwest Higher Education Compact on higher education's role in economic growth. Conference speakers included Richard Lester from MIT, Michael Luger of the University of North Carolina, Ned Hill of Cleveland State, Sean Safford of the University of Chicago, Larry Isaak of the Midwest Higher Education Compact, and Randy Eberts of the Upjohn Institute.
The Task Force on the Future of American Innovation has developed a set of benchmarks to assess the international standing of the United States in science and technology -- in education, the science and engineering (S&E) workforce, scientific knowledge, innovation, investment and high-tech economic output. This is an update to its 2005 report.
The author focuses on three aspects of community colleges' role in economic development in this presentation:
The report documents the importance of college-educated 25 to 34 year-olds (referred to as the "young and restless" in the report) to local economies -- and how cities can attract and retain them.
The Task Force on the Future of American Innovation has developed a set of benchmarks to assess the international standing of the United States in science and technology -- in education, the science and engineering (S&E) workforce, scientific knowledge, innovation, investment and high-tech economic output.
This report, prepared for the U.S. Department of Commerce Economic Development Administration, uses a series of case studies to describe the role of universities in the creation of regional industry clusters.
Moretti estimates spillovers from college education by comparing wages for otherwise similar individuals who work in cities with different shares of college graduates in the labor force. He finds that a percentage point increase in the supply of college graduates raises high school drop-outs' wages by 1.9 percent, high school graduates' wages by 1.6 percent, and college graduates' wages by 0.4 percent.
The authors find that skilled cities have grown more quickly than other less-skilled cities. Skilled cities are both more economically productive and better able to adapt to change.
From 1940 to 1990, a 10 percent increase in a metropolitan area's concentration of college-educated residents was associated with a 0.6 percent increase in subsequent employment growth. Using data on growth in wages and house values, Shapiro's model suggests that roughly two-thirds of the growth effect of human capital is due to enhanced productivity growth, the rest being caused by growth in the quality of life.
Using case studies from 12 U.S. research universities, this report documents how they establish industry research partnerships, effectively transfer technology to businesses and entrepreneurs, provide technical assistance, and develop human capital.