The Economic Benefits from Halving the Dropout Rate


A 2010 report, The Economic Benefits from Halving the Dropout Rate: A Boom to Businesses in the Nation’s Largest Metropolitan Areas, from the Alliance for Excellent Education covered the economic benefits of increasing the number of people with high school diplomas. Two Florida cities were highlighted: Jacksonville and Miami.

In Jacksonville, an estimated 7,700 students dropped out from the Class of 2008. If 3,900 of these students were to go on and achieve a high school diploma, it is estimated that they can earn an extra $48 million more in an average year. That extra income would provide an additional $36 million to the local economy and these 3,900 people would have an additional $13 million in savings and investments. As a result of higher wages and spending, the local community would see an additional $3 million in tax revenues. The additional spending would have also resulted in the creation of an additional 400 jobs by the time they reached the midpoint of their careers.

In Miami, an estimated 33,600 students dropped out from the Class of 2008. If 16,800 of these students were to go on and achieve a high school diploma, it is estimated that they can earn an extra $212 million more in an average year. That extra income would provide an additional $157 million to the local economy and these 3,900 people would have an additional $55 million in savings and investments. As a result of higher wages and spending, the local community would see an additional $16 million in tax revenues. The additional spending would have also resulted in the creation of an additional 1,950 jobs by the time they reached the midpoint of their careers.

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