K-12 Education in the U.S. Economy: Its Impact on Economic Development, Earnings, and Housing Values. NEA Research Working Paper

Overview & Synopsis

This report introduces, analyzes, and summarizes for policymakers an extensive and diverse economics literature on the effects of public K-12 education spending on local, regional, and state economies. The effects of education spending appear in indicators ranging from economic development to employment rates, small business starts, personal income, and housing values. The report offers real-world evidence that providing a quality K-12 public education for all is one of the best investments that governments can make. Therefore, policymakers should engage in serious thought and analysis before taking cost-saving steps that reduce the quality of public education to solve a local, state, or even federal budget shortfall. The paper looks at the effects of education spending and educational quality--as distinct from education spending--on economic indicators such as an individual's lifetime earnings, residential property values, manufacturing activity in a state, and small business start-ups in a state. (Contains 15 tables.)