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TennesseeGraduateSchools:BuildingtheWorkforcefortheFuture
TennesseeConferenceofGraduateSchools
2/8/2017
WhyTennesseeNeedstoSupportGraduateEducation
• Given: IndividualsinTennesseewithagraduateeducationearnmorethanthosewithabachelor’saloneornocollegedegree.
• Given: Tennessee’sdemandforworkerswithgraduate,doctoralandprofessionaldegreesisprojectedtogrowby18%by2022.
• Tennesseegraduatedegreeproductionisinsufficienttomeetlaborforcedemands.
• TennesseelagsintotalhighereducationR&Dexpenditures,whichdrivesgraduateeducation.
• ModestincreasesingraduateeducationwillreturnbillionsinincreasedearningsandtaxrevenuetoTennessee.
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UnemploymentRatebyEducationalAttainmentintheUSAges25andOver,
2015
1.7% 1.5%
2.4%2.8%
3.8%
5.0%5.4%
8.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
Doctoraldegree Professionaldegree
Master'sdegree Bachelor'sdegree
Associate'sdegree
Somecollege,nodegree
Highschooldiploma
Lessthanahighschooldiploma
Source:USBureauofLaborStatistics,CurrentPopulationSurvey 3
AveragePersonalIncomebyEducationalAttainmentintheUS
Ages25andOver,2015FloorcrossesY-axisatU.S.'saveragepersonalincome:$43,000
Source:USBureauofLaborStatistics,CurrentPopulationSurvey
$15,000
$25,000
$35,000
$45,000
$55,000
$65,000
$75,000
$85,000
$95,000
Doctoraldegree Professionaldegree
Master'sdegree
Bachelor'sdegree
Associate'sdegree
Somecollege,nodegree
Highschooldiploma
Lessthanahighschooldiploma
$81,150$86,500
$67,050
$56,850
$39,900$36,900
$33,900
$24,650
AveragePe
rson
alIn
come
4
3
$15,000
$25,000
$35,000
$45,000
$55,000
$65,000
$75,000
Doctoraldegree
Professionaldegree
Master'sdegree
Bachelor'sdegree
Associate'sdegree
Somecollege,nodegree
Highschooldiploma
Lessthanahighschooldiploma
$69,360$73,933
$57,309
$48,591
$34,103$31,539
$28,975
$21,069
AveragePe
rson
alIn
come
AveragePersonalIncomebyEducationalAttainmentinTNAges25
andOver,2015
FloorcrossesY-axisatTennessee'saveragepersonalincome:$36,753
Source:USBureauofLaborStatistics,CurrentPopulationSurvey5
GraduateDegreeProductionbyState,2015
1.06
1.27 1.311.40 1.41
1.74
2.06
0.0
0.5
1.0
1.5
2.0
2.5
Arkansas Mississippi Tennessee Kentucky Georgia NorthCarolina Alabama
TotalPer1,000Population
SourcesGraduateCouncilStateSnapShots,20166
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TennesseeGraduateDegreeProductionComparedtoCaliforniaandUSAverage,2016
SourcesGraduateCouncilStateSnapShots,2016
TotalDegree'sConferred50,823
11,5318,654
-
10,000
20,000
30,000
40,000
50,000
California U.S.Average Tennessee7
ProjectedJobGrowthbetween2012&2022byTypicalEntry-levelEducation
Source:CouncilofGraduateSchools,Master’sdegreerequirements&theU.S.workforce,2016
10.8%
16.0%
18.4%
12.1%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
All DoctoralorProfessionaldegree
Master'sdegree Bachelor'sdegree
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ProjectedJobGrowthbetween2012&2022byTypicalEntry-levelEducation
• Jobsthatrequireamaster’sdegreeatentry-levelareprojectedtobethefastestgrowingsegmentoftheworkforcebetween2012and2022.
• Jobsthatrequireamaster’sdegreeatentry-level,butdonotrequirepreviousworkexperienceareprojectedtogrowevenfasterby20.3%.
• Thesejobsinclude,butarenotlimitedto:counselors,socialworkers,therapists,nurses,andsocialscientists,andrepresentanadditional369,400jobsby2022.
Source:CouncilofGraduateSchools,Master’sdegreerequirements&theU.S.workforce,20169
CurrentNumberofTennesseeGraduateDegreesandtheNumberneededperyear
tomeetProjectedDemandby2022
Source:CouncilofGraduateSchools,Master’sdegreerequirements&theU.S.workforce,2016
5,900
6,986
5,200
5,400
5,600
5,800
6,000
6,200
6,400
6,600
6,800
7,000
7,200
Master's
Current ProjectedNeeded
872916
1,0121,063
0
200
400
600
800
1,000
1,200
Professional Doctoral
Current ProjectedNeeded
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CurrentNumberofTennesseeGraduateDegreesandtheNumberneededtomeetProjectedDemandby2022
• TennesseeneedstoincreasethenumberofMaster’sdegreesby1,086peryear.
• TennesseeneedstoincreasethenumberofDoctoralorProfessionaldegreesby147peryear.
• Tennessee’stotaldemandisprojectedtoincreaseby18%.
Source:CouncilofGraduateSchools,Master’sdegreerequirements&theU.S.workforce,201611
HigherEducationR&DExpenditures,byState:FYs2006– 2015
Alabama
Arkansas
Georgia
Kentucky
Mississippi
NorthCarolina
Tennessee
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
StateR&
DExpe
nditu
res(Do
llarsinth
ousand
s)
Source:HigherEducationResearchandDevelopmentSurveyFiscalYear2015,NCES 12
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HigherEducationR&DExpenditures,byStateandSourceofFunds
(in$1,000),FY2015
StateAllR&D
expenditures
Sourceoffunds
Federalgovernment
Stateandlocal
governmentInstitutionfunds Business
Nonprofitorganizations
Allothersources
UnitedStates 68,667,801 37,876,879 3,812,408 16,711,730 4,000,614 4,236,993 2,029,177
Alabama 902,922 529,899 47,849 227,015 60,729 24,229 13,201
Arkansas 293,494 98,709 64,221 90,629 12,521 2,252 25,162
Georgia 2,046,068 1,210,757 53,130 570,182 107,007 81,742 23,250
Kentucky 532,991 227,125 58,830 177,031 16,054 22,964 30,987
Mississippi 408,232 194,209 92,269 90,166 22,370 7,682 1,536
NorthCarolina 2,815,343 1,600,445 147,577 540,057 337,324 152,002 37,938
Tennessee 1,075,972 626,143 31,129 315,223 52,200 38,807 12,470
Source:HigherEducationResearchandDevelopmentSurveyFiscalYear2015,NCES13
HigherEducationR&DExpenditures,byStateFY2015,2006– 2015
$293,494 $408,232 $532,991$902,922
$1,075,972
$2,046,068
$2,815,343
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Arkansas Mississippi Kentucky Alabama Tennessee Georgia NorthCarolina
5% 5%
19%
39%48% 52%
62%
0%10%20%30%40%50%60%70%
Kentucky Mississippi Arkansas Tennessee Alabama Georgia NorthCarolina
PercentChange
Source:HigherEducationResearchandDevelopmentSurveyFiscalYear2015,NCES14
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HigherEducationR&DExpenditures,byStateFY2015,2006– 2015
• StateslikeArkansasandAlabamaarerapidlyincreasingtheirexpendituresonR&D.
• TennesseeneedstoincreaseitsexpendituresonHigherEducationR&Dtoremaincompetitive.
• GraduatestudentsarethebackboneofR&DprojectsinTennesseeUniversities.
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TotalGraduateDegreesAwardedbyTennesseePublicUniversities
0
500
1,000
1,500
2,000
2,500
Source:TennesseeDepartmentofHigherEducation,2014-2015TennesseeHigherEducationFactBook,Table2.416
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PercentofPublicGraduateDegreeAwardsbyDisciplineinTennessee,2014
0% 5% 10% 15% 20% 25% 30%
Trades&IndustrialPhilosophy,Religion,&TheologyForeignLanguages&Literature
Architecture&RelatedProgramsOther
LibraryScienceCommunications
MathematicsLiberalArts&Sciences
AgricultureComputer&InformationSciences
Visual&PerformingArtsEnglishLanguage&Literature
PhysicalSciencesBiological&LifeSciencesSocialSciences&History
PsychologyParks,Recreation,Leisure&Fitness
Law&LegalStudiesProtectiveServices&PublicAffairs
EngineeringBusinessManagement
EducationHealthProfessions
Source:TennesseeDepartmentofHigherEducation,2014-2015TennesseeHigherEducationFactBook,Table2.517
HigherEducationResearchandDevelopment
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HigherEducationResearchandDevelopment
• WhyspendresourcesonHigherEducationR&D?– R&Dexpendituresprovideanindicationofthestate’soverallinvestmentclimateandcapacitytocreateanddisseminateknowledge.*
-HigherEd.Institutionsarecriticalinthisrole.– R&Dexpendituressupport:
• Intellectualpropertydevelopmentandlicensing;• Newtechnologies;• Formationofnewbusinesses;• Ahigherstandardoflivinginthelongrun.
*CenterforInnovativeTechnology.Seewww.cit.org. 19
TheEconomicImpactofHigherEducation
R&DExpendituresinTennessee,2015
• Total:$1.1billion.• Sources:MajorityfromFederalFunds(58.2%).• Nearly30.0%comesfromtheInstitutionswhiletheremaindercomesfromavarietyofsources.
• StateandLocalGovernmentfundingaccountsforjust2.9%.
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SourceofTennesseeHigherEducationR&DExpendituresin2015
58%
3%
29%
5% 4%1%
Federalgovernment
Stateandlocalgovernment
Institutionfunds
Business
Nonprofitorganizations
Allothersources
21Source:HigherEducationResearchandDevelopmentSurveyFiscalYear2015,NCES
TheEconomicImpactofHigherEducation
R&DExpendituresinTennessee,2015– HigherEducationR&DexpendituresalsoprovideameasurableeconomicimpactintheShortRun.• EffectsestimatedusingtheIMPLAN©* economicimpactmethodologyforTennessee.
– EconomicImpactBasicPremise:Oneperson’sspendingbecomesanother’sincome.
*Seewww.implan.com formoreinformation.
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TheEconomicImpactofHigherEducationR&DExpendituresin
Tennessee,2015• In2015,$1.1billioninHigherEducationR&D
expendituresinTennesseesupported:
– Nearly13,000jobs;– LaborIncomeofalmost$900million;– TennesseeproducedValueAddedof$1.2billion;– Output(thetotalvalueofgoodsandservicesproduced)ofjustover$2.2billion.
– Alsohelpedgenerateanestimated$52.9millioninStateandLocalTaxrevenues.
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TopTenIndustriesBenefitedbyHigherEducationR&DExpenditures
inTennessee,2015
Description EmploymentScientificresearchanddevelopmentservices 5,591.5Foodservicesanddrinkingplaces 716.1Employmentservices 567.9Servicestobuildingsanddwellings 515.6Realestateestablishments 338.1Privatehospitals 235.4Officesofphysicians,dentists,andotherhealthpractitioners 227.4Management,scientific,andtechnicalconsultingservices 196.7Civic,social,professional,andsimilarorganizations 180.3Wholesaletradebusinesses 177.2
24Source:SBBERestimategeneratedviatheIMPLANmethodology.
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TheImpactofGraduateEducationonLifetimeEarnings
WorklifeExpectancyinYearsbyEducationalAttainment
atAge25
EducationLevel Men Women AverageHighSchool 33.41 27.98 30.70SomeCollege 33.88 30.71 32.30A.A.Degree 35.14 33.28 34.21BADegree 36.42 32.96 34.69MADegree 38.42 34.58 36.50PROF/PHDDegree 40.09 37.12 38.61
Source:GaryR.Skoog,JamesE.CieckaandKurtV.Krueger,TheMarkovProcessModelofLaborForceActivity:ExtendedTablesofCentralTendency,Shape,PercentilePoints,andBootstrapStandardErrors,JournalofForensicEconomics22(2),2011,pp.165-229. 26
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WorklifeExpectancyinYearsbyEducationalAttainment,
AverageofBothGendersatAge25
30.70 32.3034.21 34.69
36.5038.61
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
HighSchool SomeCollege A.A.Degree BADegree MADegree PROF/PHDDegree
Note:Valuesaretheaverageofmenandwomencombined.Originaldataispresentedbygender.Source:GaryR.Skoog,JamesE.CieckaandKurtV.Krueger,TheMarkovProcessModelofLaborForceActivity:ExtendedTablesofCentralTendency,Shape,PercentilePoints,andBootstrapStandardErrors,JournalofForensicEconomics22(2),2011,pp.165-229. 27
LifetimeEarningsbyEducationalAttainment
$3,244,179
$4,171,565
$5,668,881
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000
PROF/PHDDegree
MADegree
Bachelor’s
Sources:U.S.BureauofLaborStatistics,CurrentPopulationSurvey,andGaryR.Skoog,JamesE.CieckaandKurtV.Krueger,TheMarkovProcessModelofLaborForceActivity:ExtendedTablesofCentralTendency,Shape,PercentilePoints,andBootstrapStandardErrors,JournalofForensicEconomics22(2),2011,pp.165-229. 28
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LifetimeStateandLocalTaxesbyEducationalAttainment
$178,430
$229,436
$311,788
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000
PROF/PHDDegree
MADegree
Bachelor’s
Sources:U.S.BureauofLaborStatistics,CurrentPopulationSurvey,andGaryR.Skoog,JamesE.CieckaandKurtV.Krueger,TheMarkovProcessModelofLaborForceActivity:ExtendedTablesofCentralTendency,Shape,PercentilePoints,andBootstrapStandardErrors,JournalofForensicEconomics22(2),2011,pp.165-229. 29
EconomicImpactofAdding1,000MAsand1,000PROF/PHDsonTennessee
OveraWorkLife
Employment LaborIncome ValueAdded Output
1,000MAs 6,855.8 $327,144,749 $567,482,705 $921,655,283
1,000PROF/PHDs 17,924.9 $855,337,890 $1,483,714,659 $2,409,718,291
Total 24,780.7 $1,182,482,639 $2,051,197,364 $3,331,373,574ImpactsareattributabletothedifferenceinearningsbetweenMAoverBachelor'sandPROF/PHDoverBachelor's.ImpactswerecalculatedusingtheIMPLANmethodology.ResultsarespecifictoTennessee.Formoreinformationseeimplan.com.
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BenefitsofMoreMAs,Professionals,andPh.D.s
• IncreasedWorklife– MAdegreeresultsinnearly2yearsmoreoveraBachelor’s.– PROF/PHDresultsinalmost4yearsmorethanaBachelor’s.
• IncreasedEarnings– Overaworklife,anMAdegreeresultsin$927,386morethanaBachelor’sdegree.– Similarly,aprofessional/Ph.D.degreeresultsin$2.4millionmorethana
Bachelor’sdegree.• IncreasedTaxPaymentstoStateandLocalGovernments
– Vs.aBachelor’sdegree,1,000moreMAgraduatesinTNwouldresultin$3.5billionmoretaxrevenuetoTNovertheirexpectedworklives,oranetpresentvalueof$1.6billion.
– Vs.aBachelor’sdegree,1,000morePROF/PHDgraduateswouldresultin$5.0billionmoretaxintaxrevenueovertheirexpectedworklives,oranetpresentvalueof$2.7billion.
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WhySupportGraduateEducationinTennessee?
• MoreGraduateEducationleadsto:– Greaterproductivity;– Lowerunemployment;– Higherincomesandahigherstandardofliving;– AdditionaltaxrevenueforTennessee.
• AbetterworkforceplusmoreR&DexpenditureswillresultinmoreemployersandincreasedopportunitiesforallTennesseeresidents.
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