A new study by the Milken Institute found a strong relationship between a well-educated population and a region’s economic performance.1 Though it’s common knowledge that well-educated workers often make more money and have better jobs than less-educated workers, this study stands out in that it also found that just by their geographic location, less-educated people can make more money if they live in the same area as more-educated people.
Other key findings from the report include:
- Education increases regional prosperity. Adding one year to the average years of schooling among the employed in a metropolitan area is associated with an increase of real GDP per capita of more than ten percent, and an increase in real wages per worker of more than eight percent.
- Better educated = bigger benefits. The better educated the worker, the greater the benefit of additional schooling, to both the worker and the region. Add one year of college to a region’s workforce, for instance, and GDP per capita jumps 17.4 percent.
- Clusters count. In metros with clusters of high-skilled occupations, the share of workers holding at least a master’s degree is much higher than in metros without significant clusters, perhaps because of the intense competition for employment.
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