How Much Does a Single Graduation Cohort From Further Education Colleges Contribute to an Open Regional Economy?

Kristinn Hermannsson, Patrizio Lecca, Kim Swales

Research output: Working paperDiscussion paper

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Econometric analysis has been inconclusive in determining the contribution that increased skills have on macroeconomic performance whilst conventional growth accounting approaches to the same problem rest on restrictive assumptions. We propose an alternative micro-to-macro method which combines elements of growth accounting and numerical general equilibrium modelling. The usefulness of this approach for applied education policy analysis is demonstrated by evaluating the macroeconomic impact on the Scottish economy of a single graduation cohort from further education colleges. We find the macroeconomic impact to be significant. From a policy point of view this supports a revival of interest in the conventional teaching role of education institutions.
Original languageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Number of pages35
Publication statusPublished - 2014


  • graduates
  • further education colleges
  • labour supply
  • economic impact
  • general equilibrium

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