Give people access to higher education and a myriad of benefits will surface for individuals and the state of Iowa.
Our new report on the return on investment of workforce education shows the benefits and potential benefits from such investments.
At each level of education beyond high school, Iowans work and earn more. For example, those with a bachelor’s degree earn on average $7.26 more an hour than those with only a high school diploma. Families headed by a parent with a college education are also much less likely to live in poverty — and better set to recover in hard times from a job loss.
So, whether you look at unemployment rates, wages, or poverty, it is undeniable that education pays for Iowans. It also pays for the state, because better-educated people on balance earn more, and pay more in taxes, which benefits the state budget.
Our analysis finds that investing in postsecondary education for low-income adults returns tax revenue more than double the state’s program costs. The return: $3.70 in increased tax revenue for every dollar invested in an associate’s degree for low-income adults, and $2.40 for every dollar invested in a bachelor’s degree.
Other strong reasons support investments now in workforce education:
- First, the declinine in wages for less-educated workers means more Iowa families are struggling to cover basic living expenses;
- Second, Iowa will face a labor shortage in the future due to our state’s slow population growth and the impending retirements of the baby boom generation; and
- Third, employers in Iowa had already identified a shortage of a skilled workers as a problem before the recession, and the top 10 fasting growing occupations in our state all demand workers with postsecondary education.
To summarize, Iowa needs an increase in skilled workers to grow our economy after the recession ends and families in Iowa need higher wages to fully support themselves.
With forward-thinking policy moves now, Iowa can increase education and training opportunities for low-income adults, improving their futures and those of all Iowans who will benefit from a stronger economy.
Posted by Lily French, Research Associate