Understanding the issues that face us
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Economic Impacts


Individuals who drop out of high school are far more likely to spend their lives periodically unemployed, on government assistance, or cycling in and out of the prison system. But in today’s knowledge-based economy, high school dropouts are not the only ones affected when they do not graduate.

Local, state, and national tax revenues also suffer when high school dropout rates increase. Even when dropouts are employed, they earn, on average, $8,000 less annually than high school graduates and pay less in taxes. State and local economies with less-educated populaces also find it more difficult to attract new business investments. Simultaneously, state and local governments spend more on social programs when their citizens have lower education levels.

On the other hand, everyone benefits when students earn their high school diplomas. The graduates themselves earn more and typically enjoy more comfortable and secure lifestyles. At the same time, high school graduates’ increased purchasing power boosts national, state, and local economies; increases home and auto sales; creates jobs and economic growth; and leads to higher tax receipts.

To see how your local economy would benefit from a 90 percent high school graduation rate, visit GraduationEffect.org.

Every Child a Graduate. Every Child Prepared for Life.