Universities play a crucial role in shaping local economies by driving employment, fostering business growth, attracting investment, and enhancing the overall quality of life in their host communities. Their economic impact extends beyond direct spending to include long-term benefits such as workforce development, innovation, and cultural enrichment. Below, we explore the key ways in which a university influences a local economy.
- Direct Employment and Spending
A university is often one of the largest employers in a local area, providing jobs for faculty, administrative staff, maintenance workers, and other professionals. These employees spend their salaries on housing, groceries, transportation, and entertainment, injecting money into the local economy. Additionally, universities spend significant amounts on construction, utilities, and local services, further stimulating business activity.
Students also contribute to local spending. Many bring outside money into the community through tuition payments, federal aid, and personal expenditures on rent, food, and retail. A large student population can sustain businesses such as bookstores, coffee shops, restaurants, and housing providers.
- Business Development and Entrepreneurship
Universities often serve as hubs for innovation and entrepreneurship. Research institutions, business incubators, and technology transfer offices help commercialize academic research, leading to startup formation and industry partnerships. For example, Stanford University's role in Silicon Valley's growth demonstrates how academic institutions can spur regional economic development.
Local businesses benefit from university partnerships, including procurement contracts for supplies, catering, and maintenance services. Furthermore, universities attract conferences, sporting events, and cultural activities that generate tourism revenue for hotels, restaurants, and transportation services.
- Human Capital and Workforce Development
A well-educated workforce is essential for economic competitiveness. Universities produce graduates with specialized skills that attract high-paying industries, such as technology, healthcare, and finance. Many graduates remain in the area, filling critical roles in local businesses and government.
Universities also offer continuing education programs, professional certifications, and workforce training initiatives that help upskill local employees, making the regional labor market more adaptable to industry changes.
- Real Estate and Infrastructure Growth
The presence of a university can drive demand for housing, both from students and faculty. This often leads to the development of new apartments, condominiums, and mixed-use commercial spaces. Over time, universities contribute to urban revitalization by investing in campus expansions, public transit improvements, and community amenities like libraries and parks.
However, rapid growth can also lead to challenges, such as rising housing costs and gentrification, which may displace long-term residents. Local governments must balance economic expansion with policies that ensure affordable housing and equitable development.
- Cultural and Social Contributions
Beyond economics, universities enrich local culture through arts programs, public lectures, and athletic events. These activities improve residents' quality of life, making the area more attractive to businesses and skilled workers. A vibrant university town often sees increased property values and a more diverse, engaged community.
Conclusion
The economic impact of a university on a local economy is multifaceted, encompassing job creation, business growth, talent development, and infrastructure investment. While challenges such as affordability and displacement must be managed, the long-term benefits-including innovation, increased tax revenues, and a more dynamic workforce-make universities vital engines of regional prosperity. By fostering collaboration between academia, government, and industry, communities can maximize these advantages while ensuring inclusive growth.
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Louisiana Culinary Institute |
Remington College-Baton Rouge Campus |
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Delta College of Arts & Technology |
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Fortis College-Baton Rouge |
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ITI Technical College |
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Southern University Law Center |
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Franciscan Missionaries of Our Lady University |
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River Parishes Community College |
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Southern University and A & M College |
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Baton Rouge Community College |
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Southeastern Louisiana University |
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Louisiana State University and Agricultural & Mechanical College |
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Percent admitted - total Admissions yield - total
Full-time enrollment Part-time enrollment
Total enrollment % White % Black % Asian % Hispanic % Native Hawaiian or Other Pacific Islander % American Indian or Alaska Native % two or more races % Race/ethnicity unknown % U.S. Nonresident
Undergraduate enrollment % under 18 % 18-24 % 25-64 % over 65
Graduate enrollment
Student-to-faculty ratio
Tuition and fees, 2020-21 2021-22 2022-23 2023-24
Total price for In-district students living on campus 2023-24 In-state students living on campus 2023-24 Out-of-state students living on campus 2023-24
In-district students living off campus (no family) 2023-24 In-state students living off campus (no family) 2023-24 Out-of-state students living off campus (no family) 2023-24
In-district students living off campus (w/ family) 2023-24 In-state students living off campus (w/ family) 2023-24 Out-of-state students living off campus (w/ family) 2023-24
Associate's degree Bachelor's degree Master's degree Doctor's degree - research/scholarship Doctor's degree - professional practice Doctor's degree - other
Instructional FTE Research FTE Public Service FTE Librarians, Curators, and Archivists FTE Student/Academic Affairs and Other Education Services FTE Management FTE Business and Financial Operations FTE Computer, Engineering, and Science FTE Community Service, Legal, Arts, and Media FTE Healthcare FTE Service FTE Sales and Related FTE Office and Administrative Support FTE Natural Resources, Construction, and Maintenance FTE Production, Transportation, and Material Moving FTE Total FTE staff
|
74
24
32,776
6,642
39,418
60
18
4
9
0
0
3
1
4
32,574
11
84
5
0
6,844
20
11,962
11,958
11,954
11,954
35,218
35,218
51,895
37,144
37,144
53,821
20,922
20,922
37,599
0
4,839
1,626
299
289
0
1,451
259
273
79
188
385
784
949
356
235
695
3
822
324
6
6,809 |
94
45
8,639
5,222
13,861
63
16
2
6
0
0
4
7
2
12,684
26
67
7
0
1,177
20
8,289
8,289
8,373
8,373
25,837
25,837
38,315
27,409
27,409
39,887
15,597
15,597
28,075
13
1,823
306
16
6
0
509
0
0
23
59
77
75
37
126
5
81
1
203
68
13
1,277 |
NA
NA
3,872
6,987
10,859
31
57
1
5
0
0
3
1
1
10,859
23
41
36
0
0
29
4,221
4,221
4,221
4,221
NA
NA
NA
20,643
20,643
20,643
10,681
10,681
10,681
525
NA
NA
NA
NA
NA
236
0
0
2
2
51
66
5
6
0
31
0
8
3
1
411 |
50
28
5,653
1,688
7,341
5
87
2
2
0
0
1
2
0
5,848
7
85
8
0
1,493
21
9,340
9,842
9,940
9,940
26,076
25,984
33,334
27,178
27,086
34,436
16,710
16,618
23,968
0
580
250
35
193
0
348
30
42
16
18
63
60
45
124
10
120
0
146
61
4
1,087 |
NA
NA
1,365
1,041
2,406
44
41
1
6
0
0
3
5
0
2,406
21
53
26
0
0
23
4,079
4,079
4,079
4,079
NA
NA
NA
22,640
22,640
22,640
11,303
11,303
11,303
300
NA
NA
NA
NA
NA
80
0
0
2
0
22
35
0
0
0
1
0
1
2
0
143 |
83
21
725
479
1,204
69
17
4
6
0
1
0
3
0
862
1
64
34
0
342
10
14,535
14,614
15,012
15,690
NA
NA
NA
37,814
37,814
37,814
20,922
20,922
20,922
18
138
62
0
69
0
87
0
0
2
11
26
7
4
7
0
0
1
14
0
0
159 |
NA
NA
699
209
908
5
87
2
2
0
0
1
2
0
723
7
85
8
0
185
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
119
51
7
39
0
54
0
0
3
0
22
21
4
0
0
0
0
20
2
0
126 |
NA
NA
513
0
513
50
43
0
4
0
0
2
0
0
513
0
62
38
0
0
12
11,156
11,156
11,711
11,711
NA
NA
NA
29,181
29,181
29,181
22,449
22,449
22,449
195
NA
NA
NA
NA
NA
44
0
0
0
0
12
4
1
0
0
0
4
8
1
0
74 |
NA
NA
461
0
461
12
82
1
3
0
0
1
1
0
461
0
55
45
0
0
31
15,030
15,179
15,881
16,167
NA
NA
NA
36,270
36,270
36,270
21,420
21,420
21,420
38
NA
NA
NA
NA
NA
15
0
0
0
0
5
3
0
6
0
0
0
1
0
0
30 |
NA
NA
288
0
288
10
85
0
2
0
0
3
0
0
288
0
35
64
0
0
13
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
11
NA
NA
NA
NA
NA
23
0
0
0
0
2
2
0
0
0
0
7
7
1
0
42 |
NA
NA
138
0
138
7
90
0
1
0
0
2
0
0
138
0
27
73
0
0
25
17,849
19,957
14,968
15,144
NA
NA
NA
30,266
30,266
30,266
21,080
21,080
21,080
9
NA
NA
NA
NA
NA
5
0
0
0
0
3
1
0
0
0
0
2
1
0
0
12 |
49
91
90
0
90
72
22
0
1
1
0
0
3
0
90
0
74
26
0
0
16
14,575
14,575
15,575
15,575
NA
NA
NA
37,023
37,023
37,023
24,063
24,063
24,063
53
NA
NA
NA
NA
NA
6
0
0
0
3
3
2
0
0
0
2
0
0
0
0
16 |
Sources: STI: PopStats and STI: Colossus
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