Report: Class of '08 dropouts lose state $11B over lifetime

If every Illinois student who entered high school in 2004 had earned a diploma this year, the state's economy could have benefited from an additional $11 billion in the long run. That money would have come in the form of wages, taxes and productivity during these students' lifetimes, according to a study released this month by the Alliance For Excellent Education, an organization that advocates for at-risk middle and high school students by promoting education funding and reform to ensure graduation. About 1.2 million students in the U.S. dropped out of the Class of 2008, states the study. The average annual income of a high school dropout in 2005 was about $10,000 less than a high school graduate's, according to the U.S. Census Bureau. Such a correlation is undeniable, said Lisa Bergeron, senior research associate with the Northern Illinois University Regional Development Institute. “(Graduating from high school) definitely is more important than even 10 years ago,” she said Thursday in a phone interview. “If you don't have a high school diploma, your ability to get a substantial job is significantly diminished, which not only has impacts on that individual but the economy as a whole.” The more students that graduate, the higher the earning potential, which leads to increased purchasing power and higher tax receipts, according to the alliance's report, titled “The High Cost of High School Dropouts: What the Nation Pays for Inadequate High Schools.” Aside from wages and tax revenue, an important benefit is in “avoided costs,” said Diana Robinson, associate director for the NIU Center for Governmental Studies. “That is a big piece of this,” she said Thursday in a phone interview. “People who graduate from high school tend to be much less likely to go on public assistance. They are less likely to be on welfare, less likely to be incarcerated and less likely to draw upon a lot of our public resources. We can instead use that money on things like education.” Compared to dropouts, high school graduates also earn higher wages, are healthier and live longer, according to the alliance. Though economic impacts are undeniable, measuring them is not always simple. Many repercussions are unseen, Bergeron said. “It's really an impact that's not visible,” she said. “It's not like us watching the Dow Jones go up and down every day. That's visible. This is ... an indirect impact on the economy and businesses.” On the Net “The High Cost of High School Dropouts: What the Nation Pays for Inadequate High Schools” is available at http://www.all4ed.org.