27
The value of college graduates to the Scottish economy, September 2017
The total costs to the Scottish Government - attributed to the provision of the nationally-recognised
qualifications- paid through the SFC, for 2008/09-2015/16, was £2,365m17. These costs amount to around
35% of the discounted sum of the increase in the Government budget, and around 11% of the discounted
sum of the increase in GDP.
Table 13: Multiple cohort analysis for 2008/09-2015/16: long-run effects of a change in labour productivity.
(In percentage changes from base year values.)
Long-run
GDP (and GDP per capita) 1.16
Consumer price index (CPI) -0.64
Unemployment rate (pp difference) -0.16
Total employment 0.08
Nominal gross wage -0.49
Real gross wage 0.16
Households consumption 0.22
Investment 1.10
Capital stock 1.10
Export RUK 1.10
Export ROW 1.15
GDP in present value terms (£billion) 20.6
GDP in present value terms per graduate (£thousands) 55
Long-run at t = 40. GDP present value up to t = 85.
Source: Fraser of Allander Institute
17 This includes Teaching Funding and SAAS tuition fees (£1,649m), fees from other sources (£241m), student support funding
(£373m), capital, and strategic funding (£102m). This is 49% of total costs when including non-recognised qualifications. Total costs
including these of non-recognised qualifications is £4,815m. It must be noted that capital and strategic funding might include grants
from other sources e.g. European Funds. Figures provided by SFC.