The Long-Run Economic Impact of an Institution of Higher Education

Abstract

One of the main contributions of higher education institutions is human capital. In the context of regional universities, their primary impact can be measured through the future income stream of alumni who remain in the local area for work. This constitutes a long-run impact and a substantial part of the overall economic impact of an institution to the local, regional, and national economies. This study provides an important contribution to the existing literature by developing a methodology that takes into account the counterfactual, allowing for the more precise definition of economic impact. The methodology is applied to a public regional university.

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