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New England’s Colleges and Universities:

Our Last Best Hope to Sustain Our Population, Workforce, and Economy

By Stephen Coelen and Joseph B. Berger

For some of us, there was little surprise recently when the Federal Deposit Insurance Corporation announced figures documenting New England’s anemic job growth (presently hovering around one percent).  FDIC officials reported that the region’s poor performance could be attributed to an underlying problem in attracting new residents from other regions.

        Nor was the reported source of the poor performance startling news. Those of us who make our living tracking the region’s demographics have long come around to the idea that our troubles in creating jobs are inextricably connected to the difficulties in maintaining our overall population.

        The subtle but steady exodus of residents from our region--especially from southern New England-in recent decades--coupled with only modest inflows during boom times, has left New England with a disturbingly bleak long-term demographic outlook.  Conventional wisdom seems to indicate that the future belongs to the booming South, West, or Southwest, and not New England.
        Consider for example, the magnitude of the “out-migration” Connecticut and Massachusetts have experienced among mid-life and older working-age populations, according to the Census.  In Connecticut, between 1990 and 2000, the number of 40-64 year-olds who left the state was a staggering 85,000, representing four percent of the state’s entire working-age population.  Massachusetts fared little better.  In Massachusetts, the 96,000 people who up and left the Bay State during the 1990’s represented 2.5% of the working-age population—the equivalent of losing a city the size of New Bedford.  And this transpired during a period that we look back on one of relative economic prosperity.
        Searching for optimism in the face of such data can disheartening, but one key factor that continues to work decisively in New England’s favor is the wealth of college and universities in the region.  It is time we better recognized and took advantage of this edge.  In fact, higher education may be--to borrow from Abraham Lincoln--“our last best hope” for sustaining our population, workforce, and economy.
        To be sure, the economic edge that our higher education institutions contribute in the form of innovation, new technologies, and sizable federal research and development funding has long been recognized.
        But what has not been so widely appreciated, and what the conventional wisdom about our population decline tends to discount, is the powerful potential of higher education institutions to affect the future size and quality of our population and workforce.
        Helping to make this case is the research brief we authored, entitled Higher Ed Matters.  The study examines the largely unheralded but central role that local colleges and universities have played in drawing young people into the region--in effect, providing a steady, reliable supply of “replacement residents” who have proven crucial in sustaining the regional economy.
        The findings contained in Higher Ed Matters--along with those in an expanded, to-be-published report, New England 2020,--highlight a long-term positive impact on our population level and workforce from the sizable inflow of young people arriving annually in pursuit of college degrees. 
        Using 2000 Census data, we looked closely at the cohort of individuals who indicated that they had migrated into one of the six New England states between 1995 and 2000.  What we found surprised us:
  • In all states but New Hampshire and Maine, the in-migration rate for the college-aged was more than twice as high as the rate of migration for the general population.
     
  • In Massachusetts, for example, the in-migration rate for those aged 18-29 (a category that captures both undergraduate and graduate students) was 27 percent while the rate for all ages was just 10 percent.  The difference in Vermont was 32 versus 15 percent.
     
  • While we expected that students would show up in large numbers, especially in the younger age categories, we were still surprised at the degree to which in-migration and education were intertwined. In fact, education was the motive for more than half of all in-migrants aged 20-24 in every New England state except Connecticut and Maine. In those states, the numbers were still significant, with 43 and 44 percent of their age 20-24 populations arriving for education purposes, respectively.
     
  • Moreover, we found that one in three in-migrants aged 15-19 that came to Maine, New Hampshire, and Connecticut had arrived for school purposes.  More than half of those aged 15-19 arriving in Rhode Island, Massachusetts, and Vermont, came for school. *
        Since our research reveals that college students, as a group, remain the sole bright spot in a bleak demographic picture, it is not an understatement to suggest that our future hinges on the willingness of thousands of young people from across the nation (and locally) to launch their educations, their graduate studies, and, often, their careers here in New England. 
        Understanding college students as a wellspring of our population growth forces us to rethink and expand our conception of higher education institutions as not only sources of innovation but also as “future worker attractors.”
        We must now set for ourselves the task of crafting a policy agenda that builds on our existing advantage in higher education.  Each New England state needs a strategy—embraced by its business, government, education, and non-profit leadership—to attract and retain workers.  At the same time, our policies must also encourage and persuade young people native to the region to attend college and stay here.
        Because so much of the demographic change in the New England states is associated with college attendance, we believe the public policy initiatives with the most potential to foster in-migration to the region are those aimed at improving the quality, access, and affordability of New England’s higher education institutions.  Investment in and promotion of higher education—public and private—is one of the most effective ways of meeting our population, workforce, and economic challenges.
        Particularly important are business/higher education/K12 partnerships that develop college aspirations and college readiness as early as middle school.  Such partnerships—by boosting college participation rates—would help us make the most of our existing native population as a potential economic resource.  This is especially important during a time when population growth is low and in-migration of workers from elsewhere remains a challenge.
        Also worthy of consideration are campus-to-workplace “bridge” programs, in which industries, state policy-makers, and higher education institutions collaborate much more closely to attract recent graduates into those areas of the labor force generating the most demand for new workers. Systematic internship opportunities that allow students to develop connections to those sectors of the economy before graduation are one type of bridge that could be considered.
        Finally, we note that a vibrant higher education system does not permanently inoculate states against out-migration of their former college students.  The college experience introduces a new population to the various states, but whether this population remains or not, is a function of what the state economy offers once students complete their baccalaureates or post-graduate schooling.
        The economic vitality of the region today is clouded not only by limited job opportunities, but excessively high living costs.  The lack of affordable housing is a prime factor in the loss of our young, college-educated families and professionals.  The “Housing Report Card” recently issued by the Boston Foundation found that Boston has become the most expensive metropolitan area in the nation—a distinction not lost on the current generation of students.
        The task before us is clear:  In addition to attracting young people to the region through our excellent higher education institutions, we need to give them a reason to stay here, in the region, once they obtain their degrees.  We can not afford to forget that our future—as much as theirs—depends upon it.
Stephen Coelen is Professor of Economics at the Connecticut Center for Economic Analysis at the University of Connecticut.  Co-author Joseph B. Berger is Associate Professor of Education at the University of Massachusetts Amherst.
*Census figures group students ages 15-19 together.  One might assume that had we been able to look strictly at in-migrants of college-age, those percentages would be even higher. –S.C. and J.B.

 
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