presentation by a. hecht (wlu) and s. mayer (laurentian university) on the occasion of a visit by
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"The socio-economic impact of universities on local regions: A centralized empirical approach for Canada". Presentation by A. Hecht (WLU) and S. Mayer (Laurentian University) On the occasion of a visit by Russian University Presidents, Academics and Legislators to Wilfrid Laurier University - PowerPoint PPT PresentationTRANSCRIPT
"The socio-economic impact of universities on local regions:A centralized empirical approach for Canada".
Presentation by
A. Hecht (WLU) and S. Mayer (Laurentian University)
On the occasion of a visit by
Russian University Presidents, Academics and Legislators
to Wilfrid Laurier University
May 27, 2005
Abstract
It is generally believed that universities have a positive influence on the local region in which they are located. They produced an educated labour force, attract potential employers, use the local infrastructure and their students bring substantial funds to the local community. Employees of the university themselves are relatively well paid, have substantial job security and contribute financially greatly to the local environment. They are in fact growth poles for the surrounding environment.
Major influences of Universities in North America
• University mechanisms that may encourage local growth*
– as Trainer (provider of skilled labour for the local market)
– as Innovator (generator of local commercial knowledge)
– as Partner (with local commercial firms)
– as Regional Talent Magnet (attract firms to work with profs/students and profs/students may establishing local firms)
– as Facilitator (of local entrepreneurial networks)
– as Exporter of Knowledge (graduates, patens, consulting services, etc.) – as Importer of Capital (student and government fees, student living expenses, grants)
______________________________*Source: J.R.Betts and C.W. Lee, “Universities as drivers of Regional and National Innovation an Assessment of the Linkages from Universities to Innovation and Economic Growth” in Beach,C.M. R.W. Broadway, and R.M. McInnis, Higher Education in Canada, Montreal: McGill-Queen’s University Press, 2005, pp 113-157.
and Meyer, S. and A. Hecht, “University growth poles in Canada: An Empirical Assessment”, Canadian Journal of Regional Science, Vol. XIX, 3, 1996, 263-282
Socio economic Well Being in the Waterloo Region and Ontario
characteristics Waterloo Kitchener Cambridge Ontario
% Population growth 1996-2001 11 6.7 8.8 6.1
% of the population with a U. cert. dip.or degree
Age 20-34 37.2 19.2 13.5 25.7
Age 35-44 36.4 18.8 13.4 24.3
Age 45-64 31.5 16.4 12.1 21.5
Average earnings (all persons with earnings ($) 39429 31325 33505 35185
Median income,15 years and over ($) 28631 25054 25420 24816
% Labour part. rate, 15 years and older 72.1 71.4 71.3 67.3
% in Manufacturing and construction 23.48 32.61 39.09 21.97
% in FIRE, Health, Education, Business serv. 47,08 35.95 30.16 40.89
Average value of dwelling ($) 193829 157719 168719 199884
Source: http://www12.statcan.ca/english/profil01/PlaceSearchForm1.cfm
Wilfrid Laurier University Local Impact Analysis for 2004/5 (in ,000 of $)
A. Direct Financial inflow Total Local Adjacent Periphery Periphery Periphery
to the University (in ,000 of $) Waterloo R Wellington Ontario Other CDN World
Source of Students 10,775 1901 330 8165 16 363
Tuition Fees 55,420 8,980 1,550 41,000 1,170 2,720
Government operating grant 50,270 8,146 1,406 37,190 1,061 0
Other (Grants, etc) 900 900
Total Direct 104,123 17,126 2,956 78,190 3,131 2,720
University local multiplier is ~1.6
Total plus multiplier 166,596 27,401 4,730 125,104 5,010 4,352
B. Direct Students Expenditures (in ,000 of $)
books (1000/student) 10,775 1,901 330 8,165 16 363
food (400/month - 8 month) 28,396 - 1,055 26,128 53 1,161
accommodation (500/month - 8 month) 35,118 - 942 32,660 66 1,451
incidentals (300/month - 8 month) 21,297 - 791 19,596 40 870
Total Direct 95,586 1,901 3,118 86,548 175 3,844
Student local multiplier is ~1.6
Total plus multiplier 152,938 3,042 4,988 138,477 280 6,151
Total financial impact to the Waterloo Region for the 8 month is 319.53 million
Source: basic figures from Wally Pirker Internal Auditor/Institutional Research Officer
Wilfrid Laurier University and calculations were done by Al Hecht (some data is estimated)
2001
CDs Socio-Economic Well Being Conditions: Total vs. CDs with Universities
in the Maritimes and Quebec
1996 2001
CDs Ave. CDs with U's CDs Ave. CDs with U's
Maritimes
Median Income $19,025 $16,195 $17,797 $18,028
Average Household Value $72,540 $87,763 $81,195 $90,943
Employment Rate 49.08% 54.01% 50.93% 52.36%
Quaternary Labour Rate 37.26% 45.09% 36.42% 39.43%
Population Change -0.20% 1.92% -1.25% -1.78%
Manufacturing Labour Rate 13.22% 8.55% 16.83% 16.70%
Quebec
Median Income $16,439 $17,020 $19,430 $19,529
Average Household Value $80,243 $85,846 $86,413 $87,899
Employment Rate 52.67% 53.77% 56.17% 52.36%
Quaternary Labour Rate 35.97% 46.01% 36.01% 43.83%
Population Change 3.80% 2.25% 0.75% -0.98%
Manufacturing Labour Rate 18.79% 11.99% 19.13% 17.62%
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
CDs Socio-Economic Well Being Conditions: Total vs. CDs with Universities
in Ontario and the West
1996 2001
CDs Ave. CDs with U's CDs Ave. CDs with U's
Ontario
Median Income $19,490 $19,807 $22,785 $23,020
Average Household Value $142,029 $151,281 $137,681 $146,760
Employment Rate 58.45% 58.42% 60.47% 60.38%
Quaternary Labour Rate 39.21% 40.18% 36.60% 37.96%
Population Change 4.79% 3.75% 2.53% 1.91%
Manufacturing Labour Rate 16.16% 17.05% 15.93% 16.64%
Western Canada
Median Income $17,049 $18,567 $19,574 $21,645
Average Household Value $99,029 $133,216 $102,430 $136,394
Employment Rate 62.17% 63.88% 62.66% 64.99%
Quaternary Labour Rate 35.39% 42.78% 35.72% 41.68%
Population Change 4.77% 3.59% 1.59% 3.34%
Manufacturing Labour Rate 7.60% 8.16% 8.00% 8.15%
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
Socio-Economic Well Being in Census Divisions of the Maritimes, 2001
Population Employment Quaternary Manufacturing Median Average
N Change Rate Labour Rate Labour Rate Income House Value
CDs with Universities 9-1.78% 52.36% 39.30% 16.70% $ 18,028 $ 90,943
Adjacent CDs 19-2.39% 53.05% 34.81% 23.83% $ 20,207 $ 81,835
Peripheral CDs 18-6.55% 45.08% 36.83% 13.08% $ 15,646 $ 71,665
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
Socio-Economic Well Being in Census Divisions of Quebec, 2001
Population Employment Quaternary Manufacturing Median Average
N Change Rate Labour Rate Labour Rate Income House Value
CDs with Universities 6-0.98% 55.52% 43.83% 17.62% $ 19,529 $ 87,899
Adjacent CDs 19-1.54% 53.87% 36.21% 17.86% $ 18,920 $ 79,774
Peripheral CDs 180.20% 57.28% 35.18% 20.13% $ 19,652 $ 89,129
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
Socio-Economic Well Being in Census Divisions of Ontario, 2001
Population Employment Quaternary Manufacturing Median Average
N Change Rate Labour Rate Labour Rate Income House Value
CDs with Universities 12 1.91% 60.38% 37.96% 16.64% $ 23,020 $ 146,760
Adjacent CDs 23 1.23% 59.93% 36.72% 16.12% $ 22,086 $ 128,696
Peripheral CDs 13 5.38% 61.52% 39.83% 14.92% $ 23,704 $ 145,196
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other (based on 48 to 0f 59 CDs)
Socio-Economic Well Being in Census Divisions in Western Canada, 2001
Population Employment Quaternary Manufacturing Median Average
N Change Rate Labour Rate Labour Rate Income House Value
CDs with Universities 11 3.34% 64.99% 41.68% 8.15% $ 21,645 $ 136,394
Adjacent CDs 37 0.71% 65.08% 34.13% 6.96% $ 19,525 $ 103,530
Peripheral CDs 49 -0.54% 59.84% 35.85% 9.31% $ 19,360 $ 101,133
Source: Statistics Canada, 2001 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
Socio-Economic Well Being in Census Divisions of the Maritimes,1996
Population Employment Quaternary Manufacturing Median Average
N Change Rate Labour Rate Labour Rate Income House Value
CDs with Universities 91.92% 54.01% 45.09% 8.55%
$ 16,195 $ 87,763
Adjacent CDs 19-0.39% 47.99% 36.47% 15.12%
$ 14,671 $ 69,902
Peripheral CDs 18-2.54% 44.39% 35.71% 14.61%
$ 13,818 $ 64,821
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
Socio-Economic Well Being in Census Divisions of Quebec,1996
Population Employment Quaternary Manufacturing Median Average
N Change Rate Labour Rate Labour Rate Income House Value
CDs with Universities 62.25% 53.77% 46.01% 11.99% $ 17,020 $ 85,846
Adjacent CDs 281.72% 50.84% 36.15% 17.16% $ 16,177 $ 73,542
Peripheral CDs 634.98% 53.52% 34.94% 20.23% $ 16,523 $ 83,155
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
Socio-Economic Well Being in Census Divisions of Ontario,1996
Population Employment Quaternary Manufacturing Median Average
N Change Rate Labour Rate Labour Rate Income House Value
CDs with Universities 123.76% 58.42% 40.18% 17.05% $ 19,807 $ 151,281
Adjacent CDs 233.80% 57.76% 37.85% 16.46% $ 18,886 $ 134,845
Peripheral CDs 157.28% 59.63% 40.60% 14.91% $ 20,210 $ 145,902
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
Socio-Economic Well Being in Census Metropolitan Areas of Western Canada,1996
Population Employment Quaternary Manufacturing Median Average
N Change Rate Labour Rate Labour Rate Income House Value
CDs with Universities 123.59% 63.88% 42.78% 8.16% $ 18,567 $ 133,216
Adjacent CDs 235.72% 63.70% 33.92% 6.82% $ 17,003 $ 101,181
Peripheral CDs 155.54% 60.42% 35.08% 8.73% $ 17,003 $ 100,034
Source: Statistics Canada, 1996 Census, http://tdr.uoguelph.ca.libproxy.wlu.ca/cgi-bin/drc.cgi/other
Conclusion
Communities in Canada with Universities
- have produced higher average income in the local communities
- have produced more knowledge jobs
- have increase housing values
- have higher labour participation rates
- have normally less people in lowly manufacturing jobs