IGPA study: University makes $13 billion annual impact on Illinois economy
The University of Illinois, with a student body of nearly 70,000 and more than 23,000 faculty and staff on its three campuses, is an engine that pumps more than $13 billon into the state’s economy each year, according to a new report from the University’s Institute of Government and Public Affairs.
The study, conducted by U of I economists, indicates the University is responsible, directly and indirectly, for more than 150,000 jobs. U of I alumni added more than $21 billion to the state’s economic output in 2008 as their wages and salaries rippled through the economy.
“We know the University of Illinois provides value to the state by educating future generations, by conducting research that adds to productivity, and by offering many other opportunities that help strengthen our state,” said Robert F. Rich, director of IGPA. “Our task with this report was to quantify the full impact of the University on the state’s economy.”
The report was compiled by three faculty members of IGPA and was delivered to the University’s Board of Trustees at its meeting in Chicago today. See the full report [PDF]. Read an overview [PDF].
U of I economists Geoffrey Hewings, Robert Resek and Darren Lubotsky, and research assistant Finley Edwards, looked at the direct and indirect impact of University-paid wages and salaries, materials and services purchased by the University, and capital spending; the increase in earning power that higher education provides for students; increases to state and local tax revenue because of the increased income a U of I education provides; the economic benefits of increased productivity; and a variety of nonmonetary benefits that higher education provides for students and society.
The report found that the U of I student body reaps about $13 billion in additional lifetime earnings, and that a University education creates nearly $1.3 billion in future tax revenue for the state each year. The state contributes about $726 million to the University, so there is a net gain of $535 million annually. View a video on this topic.
“This report shows that the University of Illinois makes a significant, positive impact on the economy of the State of Illinois,” Rich said.
See also:
- the Impact Illinois brochure produced by the Office of University Relations
- a PDF of the Impact Illinois brochure
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