Oklahoma Higher Education
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Transcript of Oklahoma Higher Education
what does REMI say? sm
Oklahoma Higher Education
By: Josh BrownsteinAssociate Economist
Regional Economic Models, Inc.
what does REMI say? sm
Overview
• Predict the total economic impacts of the higher educational system of the state of Oklahoma
• Major impacts on graduate earnings, student expenditures, employment effects on the Oklahoma economy
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OSRHE
• Oklahoma State Regents for Higher Education provided the necessary inputs for the policy variables being analyzed– Examples of variables: capital assets, land,
construction, furniture, fixture, equipment, machinery, library materials, and infrastructure
– Analysis used for total operating expenses
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REMI analysis
• Using Policy Insight, REMI looked at the direct impact on– Institutional employment and spending– Student and visitor spending– Graduate earnings– Productivity
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Simulations
• Run a simulation from 2008 to 2050 to analyze the results
• Look at the economic impact between non-college educated students and college graduates
• 94 occupational matrix->used for analysis within occupations and
specific industries
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Economic Growth
• Benefits for the state of Oklahoma– Creation of new jobs including teachers,
maintenance workers, and other faculty opportunities
– More competitive industries with higher education
– More investment and consumption
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Graduate Earnings14.76%
Student Expenditures
5.99%
Employment10.36% Capital and
Construction Spending
0.29%Visitors and Athletics
0.16%
Productivity68.44%
Productivity Results
• As each year colleges and universities graduate a class of seniors who will be more productive than non-college educated individuals over their entire working lives
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Baseline vs. Higher Education
2008 2018 2028 2038 2048
With Higher Education $134.852 $231.687 $370.206 $584.101 $938.634
Baseline $129.528 $205.395 $312.669 $479.102 $758.871
$0$100$200$300$400$500$600$700$800$900
$1,000
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Total Employment and Labor Force Growth
107,900
185,600
248,200
302,900
353,200
23,590
135,900
205,600
265,400
314,800
2008 2018 2028 2038 2048
Employment Labor Force
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Employment
• Employment (Thousands), Graduate Earnings– Graduate earnings’ initial effect on disposable
personal income increased consumption, which in turn increased employment
2.678
34.740
67.800
101.400
134.300
0
50
100
150
2008 2018 2028 2038 2048
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Student Expenditures
• Students tend to spend money on tuition, textbooks, room and board, and other miscellaneous consumption
Consumption (Bil Nom$)
$2.312$3.694
$5.281
$7.559
$11.484
$0$2$4$6$8
$10$12$14
2008 2018 2028 2038 2048
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Employment Effect
$3.635$5.636
$8.483
$12.757
$19.594
$0
$5
$10
$15
$20
$25
2008 2018 2028 2038 2048
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Productivity Gains by Degree Type
Consumption (Bil Nom$)
2008 2018 2028 2038 2048 Average
PRODUCTIVITY
Associate's $0.01 $0.24 $0.64 $1.31 $2.43 $0.93
Bachelor's $0.06 $1.08 $2.85 $5.81 $10.79 $4.12
Graduate/Professional $0.03 $0.57 $1.50 $3.07 $5.70 $2.17
Aggregate $0.10 $1.89 $5.00 $10.20 $18.97 $7.23
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Higher Education Scenario
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Higher Education Results
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Graduate Earnings
• Disposable Personal Income (Bil Nom$)
$0.331$5.255
$13.416
$26.684
$48.692
$0
$10
$20
$30
$40
$50
$60
2008 2018 2028 2038 2048
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Analyzing Results
• In 2008, there will be an increase of $331 ($284) million in disposable income
• Annual contribution of disposable income will increase by $8.825 billion from 2008-2048
• Long run->increase disposable income, will increase economic activity leading to more economic growth for the region
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Conclusion
Thank You!