USC study: Bachelor’s degrees boost state’s economy

A new study conducted by the Moore School of Business at USC has found that a higher number of residents holding bachelor’s degrees within the state can significantly boost the local state’s economy.

The study, conducted for the South Carolina Commission on Higher Education and unveiled today, concludes that if by 2030 South Carolina is among the nation’s leaders in bachelor’s-degree-holding residents, with 29% of the working-age resident’s holding a bachelor’s degree, there would be $6.9 billion in new annual personal income, $7.8 billion in gross state product and 44,514 additional permanent jobs per year.

“The Moore school report demonstrates that higher education is the smartest financial investment South Carolina can make,” said Ken Wingate, chairman of the state’s Commission on Higher Education. “As noted in our new action plan, if South Carolina doesn’t focus on higher education, it will fall further behind in the knowledge economy, becoming the equivalent of a third-world nation inside the United States.”

The committee focused on the bachelor’s degree as the standard, as it is the most consistent measure across states. But it also stressed the importance of other higher-education degrees, including associate, graduate and professional, along with certificate programs.

The Moore school report, authored by economists Douglas Woodward and Paulo Guimaraes, explored the potential ramifications of the state’s reaching that goal.

The report reveals that economic benefits begin to accrue to the state as it moves toward the 2030 goal and stated that, after reaching the goal in 2030, each dollar spent by the state on higher education could boost South Carolina’s annual economic activity more than 25-fold.

“South Carolina’s business community is dedicated to creating a highly skilled, capable work force, and this new study strongly underscores why,” said Otis Rawl Jr., president and CEO of the South Carolina Chamber of Commerce. “An educated and well-prepared work force is key to increasing wealth among South Carolinians and competing in the global marketplace.”

The study also found that on average, over a lifetime, individuals with bachelor’s degrees earn $1.2 million more than individuals who completed high school and earn additional income 8.2 times what they invested in a four-year degree.

“This study reveals that funding for education is not simply providing a vital public service, but is an investment in South Carolina’s future with multiple economic and social returns,” according to the report. “With a better educated population, South Carolinians, the state’s communities and the state as a whole will be in substantially better shape to brave the future.”