The Economic Value of a UW-Superior Education to the State of Wisconsin Besides UW-Superior’s short-term income and employment impacts on the local Superior/ Douglas County economy, there is also a longer-term economic gain in the human capital investments of its alumni. Those alumni who remain in Northwest Wisconsin after graduation will add to the state’s quality of life. From their higher earnings, they will pay higher state and local taxes. Their higher spending levels will generate more jobs, which will further expand the region’s economy and its tax base. In this section, UW-Superior’s long-term economic impacts on the formation and development of human capital resources in Northern Wisconsin were analyzed. A model was developed to calculate the IRR on investing in a bachelor’s degree from UW-Superior. This rate of return was evaluated against average annual returns on government bonds and equities over the last 100 years. The conclusion is a bachelor’s degree from UW-Superior pays an average annual return on investment from 10.76 to 14.43 percent APR over the life of the investment. Now, going back to the two questions: is it “worth it” to earn a bachelor’s degree from UW-Superior? Based on our analysis, the answer is yes. Furthermore, our findings also reveal that the taxpayers of Wisconsin earn a minimum of 4.19 percent APR on the added state income taxes that UW-Superior graduates pay out of their higher earnings. Regarding the second question, is it “worth it” for the State of Wisconsin to continue supporting UW-Superior? Again, our results reveal that it is absolutely “worth it” for the state of Wisconsin to continue supporting UW-Superior.
UW-Superior alumni who remain in Northwest Wisconsin help generate more jobs and expand the region’s economy and tax base.
11
To access to the full report including appendices, visit uwsuper.edu/econimpact
Made with FlippingBook Digital Publishing Software