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Irish Universities contribute €8.89 billion to Irish economy annually
The Irish economy benefitted by €8.9 billion last year from Ireland’s seven universities newly published research has confirmed. The first ever socio-economic impact research undertaken on the role universities play in the economy and society has been carried out by Indecon on behalf of the Irish Universities Association. The Impact Study looks across a variety of areas to assess the impact universities have on research, society, the economy and individuals, including the benefits arising from international students.
Findings from the report include:
The seven universities contribute a total of €8.9 billion to the economy.
There has been a significant increase in the number of students enrolling for a university education which correlates with the demand for more highly skilled employees in the Irish economy. In 2017 over 120,000 students enrolled, up 50% from 2000.
Indecon have identified a cumulative net gain to the Exchequer of €1,606 million in net present value terms based on the lifetime net earnings projections for the 2017 – 2018 cohort of new entrants to the seven universities. This is based on a net gain to the exchequer from the lifetime earnings of individual undergraduate degree holders of €62,000. In other words, the Exchequer gains a net €62,000 over the lifetime of the graduate in today’s money terms when all costs to the Exchequer are taken into account.
University graduates generate an income premium significantly beyond those with no third level education and have consistently lower unemployment rates, even during the recession years.
The average lifetime net premium for an undergraduate degree holder is €106,000 compared to a UK premium of £88,000 for graduates from the prestigious Russell Group Universities. Master’s Degree holders’ net premium rises to €146,000 and PhDs’ to €222,000. These figures are net of tax and factor in the costs incurred by students in obtaining their degrees and income foregone during their years at university.
Irish Universities make a total research impact of €1.5 billion to the economy. This breaks down into €632 million from direct research expenditure, €373 million spill-over impact of university-based research on the wider economy, and €526 million from indirect and induced effects.
In 2017 – 2018 there were 16,701 full-time International students living in Ireland. Indecon estimated that the total annual export income generated for the Irish economy from International students at €386 million.
The report provides further detail on the social and cultural impacts of Irish Universities along with supporting 22,000 jobs, both directly and indirectly.
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