Education vital to region’s economy

CEOs for Cities, a national network of urban leaders dedicated to building the next generation of great American cities, is currently on a 25-city “Talent Dividend Tour” to publicize recent research on the economic impact of improving college attainment.

Civic leaders in Atlanta recently gathered to learn about the potential of Talent Dividend for the city of Atlanta and the region. The numbers are big.

Per capita income and a city’s college graduation rate are directly correlated, according to CEOs for Cities. An increase of one percentage point in the rate of college attainment is associated with an increase of $763 in per capita income. According to the latest data, 47 percent of people 25 and older in the city of Atlanta have at least a four-year college degree. Increasing that number by just one percentage point would boost per capita income by $396 million a year.

In the metro area, Atlanta could gain $4 billion in per capita income if the region’s college attainment rate increased from 33 to 34 percent. These possible gains are significant in Atlanta and nationwide. If each of the top 51 metro areas achieved a one percentage point increase in college attainment, the United States would realize a $124 billion annual dividend, thanks to its cities.

Educational attainment also affects the unemployment rate, which for high school dropouts in the U.S. is 15.5 percent, versus 10 percent for high school graduates and 4.3 percent for the college-educated, according to Harvard University economics Professor Edward Glaeser. He writes on the New York Times’ Economix blog that the unemployment rate gap between the most- and least-skilled workers is widening, not narrowing. According to Glaeser, the suddenly unemployed, educated elite are not those most in need of assistance during this recession. Government policy should focus on training less skilled workers, because, he says, “education remains the best antidote against unemployment.”

Atlanta is showing some progress in education. Over the past five years, Atlanta Public Schools has raised the high school graduation rate from 39 percent in 2002 to 72 percent in 2008. Project GRAD Atlanta and the mayor’s Youth Program have played significant roles in securing scholarship funds and in strengthening the college readiness of Atlanta public school students.

Improving educational attainment is more than an inherent good or inspirational goal. The realities of the knowledge economy, buoyed by the Talent Dividend figures, show that having a solid talent strategy in place must now be the cornerstone of any city’s economic development plan. Clearly, Atlanta’s leaders get it. Educational attainment is one of the goals of the mayor’s economic development plan. Mayor Shirley Franklin says, “If Atlanta is to attract jobs and compete globally, we must grow our pool of talent from within.” Given the huge gains that are possible for our city and our region, capturing Atlanta’s Talent Dividend is a worthy goal for all of us.

Peggy McCormick is president of the Atlanta Development Authority.