Abstract
This paper searches for another empirical evidence supporting positive externalities from higher education. Using state-level US data on agriculture and IT industries, we find that there are positive spillover effects from more-knowledge intensive workers in the IT industry to less-knowledge intensive workers in the agricultural industry. According to our empirical findings, one well-educated IT worker generates and contributes $11,000 to the agricultural industry, which implies that the benefits of higher education are diffused from education beneficiaries to the other member of society.
Highlights
IntroductionIf we want America to lead in the 21st century, nothing is more important than giving everyone the best education possible-from the day start preschool to the day they start their career. (Barack Obama, Weekly Presidential Address, Aug 18, 2012)
If we want America to lead in the 21st century, nothing is more important than giving everyone the best education possible-from the day start preschool to the day they start their career. (Barack Obama, Weekly Presidential Address, Aug 18, 2012).Needless to say, many researchers and policy makers have emphasized the importance of higher education on economic outcomes
In addition to an individual economic success, there have been many academic research efforts focusing on the role of higher education in enhancing economic growth and development
Summary
If we want America to lead in the 21st century, nothing is more important than giving everyone the best education possible-from the day start preschool to the day they start their career. (Barack Obama, Weekly Presidential Address, Aug 18, 2012). Many researchers and policy makers have emphasized the importance of higher education on economic outcomes. It is commonly accepted that educational attainment is the most important factor of an individual economic success. In addition to an individual economic success, there have been many academic research efforts focusing on the role of higher education in enhancing economic growth and development. It is commonly accepted that higher education leads economic growth. Economists, following Lucas’ seminal 1988 paper [2], generally consider that the diffusion of knowledge is the important contribution of education on economic growth and have tried to measure the economic size of this diffusion empirically. We search for another empirical evidence supporting positive externalities from higher education.
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