The Changing Role of Community Colleges in Economic Development

The important relationship between four-year colleges and universities and economic development is well established. The relationship is particularly clear in two areas. First, the value of a college degree to the individuals receiving them and society at large are readily apparent.

A study conducted in 2005 by Arizona State University estimated that "discounted lifetime benefits from a university degree – including combined individual and societal benefits – exceed $600,000 per worker, a combined internal rate of return of about 16 percent."1 However, the study also points out the limited scope of these great benefits, citing the statistics that "only one quarter of the U.S. adult population has at least a bachelor’s degree.

Academic ability and information barriers limit the number of individuals who attain a university degree."2 The study maintains that there are also financial barriers, but that government programs to promote access have been effective. With increases in tuition and, in some states, tuition deregulation, financial barriers may become even more formidable.

By John Warren, Project Manager

AngelouEconomics

Full Story: http://www.angeloueconomics.com/communitycolleges.html