HBCU Economic Impact of the Nation’s Historically Black Colleges and Universities
CRW HBCU Economic Impact of the Nation’s Historically Black Colleges and Universities – 2006
Some of the major findings from the analysis include:
• The combined initial spending of all 101 HBCUs in their host communities totaled $6.6 billion. Public HBCUs accounted for 62 percent of this total amount while not-for-profit HBCUs accounted for the remaining 38 percent.
• The total economic impact of the nation’s HBCUs was $10.2 billion in 2001. The input-output model estimated
that 65 percent of this total was initial spending by the institutions and students, while the remaining 35 percent
was the induced/respending impact, or multiplier effect. To put that into perspective, it is interesting to note that in terms of output (revenues), the nation’s HBCUs would rank 232nd on the Forbes Fortune 500 list of the United States’ largest companies.
The 101 HBCUs collectively generated a value-added (or gross regional product) impact of $6 billion in 2001.
• Collectively, HBCUs generated a labor income impact of $4 billion in 2001, including all forms of employment
income, such as wages, salaries, and proprietors’ incomes. The labor income received by residents of the
communities that host one or more HBCUs represents 73 percent of the value-added impact and 66 percent of
initial spending.
• The total employment impact of the 101 HBCU institutions included 180,142 total full- and part-time jobs in 2001. To put that into perspective, it is interesting to note that the rolled-up employment impact of the nation’s HBCUs exceeds the 177,000 jobs at the Bank of America in 2006, which is the nation’s 23rd largest private employer.
• Public 4-year HBCUs generated 105,482 jobs while public 2-year institutions generated 9,353 jobs. Among private, not-for-profit HBCUs, 4-year institutions generated 64,785 jobs while 2-year institutions generated 522
jobs.
• Because most HBCUs are located in large- to medium-sized metropolitan areas that have very diverse economic bases, their economic impacts typically constituted a small share of total economic activity in their respective regional economies.
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