New study ties classroom success to billions in economic activity

COLUMBIA, S.C. (WIS) - A new study from the University of South Carolina’s Darla Moore School of Business suggests improving student achievement could have far-reaching economic benefits for South Carolina, linking stronger academic performance to higher wages, greater workforce productivity and long-term economic growth.

Researchers examined the relationship between student achievement, earnings, employment and workforce productivity, finding that educational outcomes can have a direct impact on the state’s economy.

“The strongest economic development strategy is not attracting new businesses to the state. It’s developing the talent sitting right here in our classrooms,” said Tobin Cassels, president of Southeastern Freight Lines.

The study found that if South Carolina reaches its “Drive to 75” goal, which aims to have 75% of students meeting grade-level expectations by 2030, the state could generate nearly $208 billion in additional economic activity over the next 35 years.

According to the report, educational attainment is closely tied to earning potential. Research economist Dr. Joseph Von Nessen said South Carolinians with a high school diploma earn about 25% more annually than those without one, while those with a bachelor’s degree earn roughly 110% more.

The study also estimates that every one-point increase in student proficiency is associated with approximately $5.3 million in additional annual earnings statewide.

Researchers say stronger academic performance can help students qualify for higher-paying jobs while giving employers access to a larger pool of skilled workers.

“Improvement in student performance generates significant benefits for South Carolina,” Von Nessen said. “This includes individual benefits for students in the form of higher earnings and a lifetime of better job opportunities, as well as social benefits.”

Business and education leaders say those benefits are increasingly important as South Carolina works to meet workforce demands in industries such as manufacturing, technology and health care.

“When I hear numbers like the ones Dr. Von Nessen just shared, I don’t just hear economic projections. I hear opportunity,” said Greg Thompson of Thompson Construction Group.

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