Public Education Expenditures and their Effects on State Income

Abstract

Education is considered to be one of the most vital factors in determining the success of an economy. This paper examines the connection between public expenditures toward post secondary education and state income levels. In a more complex multiple regression model we take into account unemployment rates, number of metro areas, and poverty rates within each state. In both the simple and the multiple regression models we found that public expenditures for post-secondary education are statistically significant in its effect on state income.