USC system, alumni pump $4.1 billion into state’s economy annually
January 18, 2012
COLUMBIA, SC – January 12, 2012 – The University of South Carolina andits alumni drive the state’s economy by supporting nearly 53,000 jobs– about 1 in every 37 jobs in South Carolina – and pumping $4.1billion dollars into the state’s economy every year.
The figures were released Thursday (Jan. 12) by Darla Moore School economists Joey Von Nessen and Doug Woodward.
The university’s eight campuses, which employ 14,000 people, andtheir 155,000 alumni in the Palmetto State contribute $75 million moreto the state in taxes than USC receives in state appropriations, VonNessen said.
This is a key finding of this study because it shows that incarrying out its mission to educate South Carolinians, USC also helpsto generate a sizable amount of revenue for the state, Von Nessensaid.
The economic impact of the University of South Carolina issweeping, USC President Harris Pastides said. Education isacknowledged as the path to economic success and increased quality oflife for individuals. However, these results illustrate the benefits,including economic prosperity, that the University of South Carolinacontributes to our state’s citizens in every community regardless oftheir connection to Carolina.
Specifically, the $4.1 billion represents the total dollar value ofall goods and services associated with USC, including higher wagesearned by graduates and business activity resulting from theuniversity’s spending.
Below, Joey Non Nessen, Economist
South Carolina residents with bachelor’s degrees earn on average$15,000 more per year than high school graduates, Woodward said,creating what is called a spillover effect for communities.
When the number of college-educated workers in a community rises,it tends to increase the incomes of all workers, not just thecollege-educated workers, Woodward said. These are known as economicspillover effects. For example, college-educated workers bring newknowledge and skills sets to the workplace that are then partiallyshared and transferred to others on the job, making other workers moreproductive.
In addition to the financial boost, communities with larger numbersof college graduates tend to have better schools, better health careand more involvement from residents, Von Nessen said. And, crime ratestend to be lower in those communities.
USC’s impact is felt all across the state, not just around itseight campuses. Alumni living in Charleston pump $310 million into thestate’s economy; in the Grand Strand, alumni account for $137 millionof state economic output; and, in the Pee Dee, $132 million a year goesinto the state’s economy from alumni living in that region.
The study examined the impact of higher wages that working alumniearn beyond what they would have earned without a USC degree;identified the impact of the increase in wages for all workers inSouth Carolina created by spillover effects; estimated the economicimpact of nontax dollars the university spends; and quantified theincreased state tax revenues resulting from the higher wages andexpenditures.
The economic impact measured how expenditures increased the demandfor goods and services in the region over what the demands would havebeen without the presence of a university campus in the community.
The full study of USC’s economic impact is available at be www.sc.edu/impact.
