The Statewide
`Economic Impact of the
`University of New Mexico
`
`August 2018
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`Acknowledgements
`
`This report would not have been possible without the financial support of New Mexico Gas
`Company, an Emera Company. I am grateful also to the UNM Economic Development
`Council, Lisa Kuuttila and Cara Michaliszyn of STC.UNM, and the many UNM employees
`who provided data critical to this analysis including Ellen Peterson at the UNM Foundation,
`UNM Budget Officer Regina Dominguez, Ella B. Watt, Chief Financial Officer at University of
`New Mexico Hospital, and Justin Walters of the Office of the UNM Vice President for
`Research.
`
`Report Prepared by Kelly O’Donnell, PhD
`
`For questions about the Statewide Economic Impact of the University of New
`Mexico, please contact Kelly O’Donnell at kodonnell@unm.edu.
`
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`The Statewide Economic Impact of The University of New Mexico
`
`TABLE OF CONTENTS
`
`EXECUTIVE SUMMARY ............................................................................................................ II
`
`INTRODUCTION ......................................................................................................................... 1
`
`UNM BACKGROUND ................................................................................................................ 1
`
`ECONOMIC IMPACT ................................................................................................................. 1
`
`I-O MODELING WITH IMPLAN® ................................................................................................. 2
`UNIVERSITY OPERATIONS ............................................................................................................... 3
`STUDENT EXPENDITURES ................................................................................................................ 7
`ALUMNI HUMAN CAPITAL.............................................................................................................. 8
`ENTREPRENEURSHIP AND INNOVATION ..................................................................................... 13
`TECHNOLOGY TRANSFER ............................................................................................................. 14
`INNOVATION ECOSYSTEM ............................................................................................................ 16
`
`STUDY LIMITATIONS ............................................................................................................. 18
`
`CONCLUSION .......................................................................................................................... 19
`
`END NOTES .............................................................................................................................. 20
`
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`The Statewide Economic Impact of The University of New Mexico
`
`EXECUTIVE SUMMARY
`
`The University of New Mexico (UNM) has a profound, positive effect on the New Mexico
`economy. Composed of the Albuquerque main campus and Health Sciences Center, as well as
`branch campuses in Taos, Valencia County, Los Alamos, and Gallup, UNM enhances workforce
`productivity and drives economic growth statewide.
`
`UNM’s quantifiable economic impact has four major components: university operations, student
`expenditures, alumni human capital, and technology transfer. Together these components account
`for an estimated 24,985 jobs, $3.5 billion in annual employee compensation, and $3.1 billion in
`economic output.
`
`UNM’s operational expenditures totaled $2.2 billion in 2017. UNM employs 16,388 faculty and
`staff, spending roughly $1.4 billion per year on wages, salaries, and benefits. Annual non-labor
`operational expenditures total $833 million.
`
`Over 50 percent of UNM’s purchases are made from New Mexico vendors. Spending by UNM
`generates a positive economic impact for New Mexico when funds originating outside New Mexico
`are spent in New Mexico. Roughly 47 percent of UNM operational spending, about $1.1 billion,
`meets both these criteria. As these expenditures move through the New Mexico economy, they
`stimulate additional economic activity resulting in further increases in employment, wages, and
`productivity. When these multiplier effects are accounted for, the total economic impact of UNM
`operations is 16,401 jobs, $876 million in labor income, and $2.1 billion in economic output.
`
`Over 26,000 full and part-time students attend UNM. Eighty-three percent of students enrolled
`during the 2016-2017 school year were New Mexico residents. Spending by the school’s 4,485
`non-resident students totaled $53.5 million, supporting 822 full and part-time jobs, $21.2 million
`in labor income, and $78.6 million in economic output.
`
`As the state’s flagship university and home to New Mexico’s only law and medical schools, UNM
`provides state businesses and institutions with a highly skilled professional workforce and serves as
`the training ground for New Mexico’s political, business, and community leaders. Over 100,000 UNM
`alumni currently reside in New Mexico. The education they obtained at UNM enhances their
`economic productivity and increases their earning capacity. In 2017, UNM graduates earned roughly
`$2.3 billion more than they would have had they not gone to college. Over 40 percent of these funds
`were reinvested in the New Mexico economy as purchases from local businesses and institutions,
`resulting in a total economic impact of $933 million.
`
`UNM faculty, staff, and students conduct cutting-edge research across a spectrum of disciplines,
`attracting over $300 million in contract and grant funding in 2017. UNM’s technology-transfer and
`economic-development organization, STC.UNM, fosters innovation and entrepreneurship by helping
`UNM researchers commercialize their inventions. In 2017, New Mexico based start-ups affiliated with
`STC.UNM employed roughly 247 New Mexicans, paid an estimated $19.1 million in wages and salaries
`and generated $32.2 million in total output. The additional economic activity stimulated by these
`
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`The Statewide Economic Impact of The University of New Mexico
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`new firms resulted in a total of 448 additional jobs, $28 million in labor income and $56.1million in
`new economic output.
`
`The analysis presented here captures UNM’s quantifiable contribution to the New Mexico
`economy, but it is not a comprehensive inventory of all the ways in which UNM supports economic
`growth and prosperity. Entities throughout UNM help make New Mexico a good place to live, work,
`and do business through a vast array of initiatives including internships, community engagement,
`support for the disadvantaged and disenfranchised, civic engagement, and expanded access to arts
`and culture, to name just a few. Societal benefits of education include improvements in health
`outcomes, enhanced social cohesion, increased civic engagement, and lower crime rates.
`
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`The Statewide Economic Impact of The University of New Mexico
`
`INTRODUCTION
`
`The University of New Mexico (UNM) has a profound, positive effect on the New Mexico
`economy. Composed of the main campus and Health Sciences Center, both in Albuquerque, as well
`as branch campuses in Taos, Valencia County, Los Alamos, and Gallup, UNM enhances workforce
`productivity, improves quality of life, stimulates innovation, and drives economic growth statewide.
`This report quantifies, to the greatest extent possible, UNM’s impact on the New Mexico economy
`in 2017.
`
`This report is not directly comparable to earlier studies of UNM’s economic impact conducted
`by the UNM Bureau of Business and Economic Research in 2004 and 2011 or to studies of NMSU’s
`economic impact conducted in 2004 and 2010. These studies, although similar, differ in a variety of
`ways, including the types of economic impacts estimated, the time period(s) assessed, the models
`and data sources used, and some underlying assumptions.
`
`UNM BACKGROUND
`
`With over 16,000 faculty and staff and $1.3 billion in payroll expenditures, UNM is one of New
`Mexico’s major employers.
`
`Table 1: UNM Employment, All Campuses, 2017*
`Staff
`3,501
`2,469
`112
`60
`110
`159
`6,112
`551
`13,074
`
`Main
`HSC
`Gallup
`Los Alamos
`Taos
`Valencia
`UNM Hospitals
`UNM Medical Group
`Total
`
`*Includes temporary and part-time employees
`
`Faculty
`1,636
`1,306
`120
`66
`95
`91
`0
`0
`3,314
`
`Total
`5,137
`3,775
`232
`126
`205
`250
`6,112
`551
`16,388
`
`Sources: UNM Office of Institutional Analytics, UNM Medical Group 2017 Audit, and UNM Hospitals 2017 Audit
`
`ECONOMIC IMPACT
`
`UNM’s quantifiable economic impact has four major components: university operations, student
`expenditures, alumni productivity, and technology transfer. Together these components account for
`24,985 jobs, $3.5 billion in annual labor income, and $3.1 billion in economic output. Each component
`of economic impact is addressed separately in the following sections. Each impact estimate employs
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`a different methodology, although all rely, to some degree, on Input-Output (I-O) analysis utilizing
`the IMPLAN® modeling system. Specific data and methodologies are described in the individual
`sections.
`
`Table 2: UNM Economic Impact, Summary Results ($ millions)
`
` UNM Operations
` Student Spending
` Alumni Income
` Tech Transfer
` Total
`
`Employment
` 16,402
` 821
`7,313
`448
` 24,985
`
`Labor Income
` $876
` $21
`$2,596
`$28
`$3,521
`
`Output
`$2,073
`$79
`$933
`$56
`$3,140
`
`I-O Modeling with IMPLAN®
`
`The IMPLAN® Online modeling system was used to estimate the impact of UNM operations on
`the New Mexico economy. IMPLAN® is a widely used software package and database for estimating
`local economic impacts1 using input-output (I-O) analysis.
`
`I-O analysis is based on the premise that regional economies are composed of interconnected
`households, industries, and institutions. These sectors purchase output from each other and supply
`inputs to each other in a complex web of interdependencies. A significant change to one sector will
`therefore impact the many other sectors to which it is connected.
`
`In an I-O model, the initial economic change is called the "direct" effect. As the initial change
`travels outward through the regional economy it produces "indirect" and “induced” effects.
`Multipliers represent the mathematical relationship between the initial change in one sector of the
`economy and the changes in employment, income, and productivity it catalyzes in other sectors.
`
`Direct effects represent the initial change to the industry in question.
`Indirect effects result when the industries that supply the industry in question respond to the
`change in demand.
`Induced effects reflect changes in local spending that result from income changes in the
`directly and indirectly affected industry sectors.
`
`In this report, economic impact is estimated using an export-base methodology wherein only
`expenditures funded with revenue originating outside the state are considered to have a net positive
`impact on the state economy. As such, revenue from state and local appropriations is assumed to
`have a no net impact on the state economy because, if not appropriated to UNM, it would likely be
`spent elsewhere in New Mexico, by government or by taxpayers, and generate comparable benefits.
`Conversely, federal revenue is considered to originate entirely out-of-state.
`
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`In order to generate a positive economic impact, revenue derived from external sources must
`also be spent in New Mexico. UNM expenditures of federal funds and other out-of-state revenue
`on employee compensation, locally produced goods and services, and construction therefore
`generate direct economic impact. Indirect impacts are the jobs and economic activity created by
`businesses in UNM’s supply chain when they produce goods and services for UNM. Induced impacts
`result when employees of UNM and its suppliers use their wages and salaries to purchase goods and
`services in the regional economy.
`
`The output of the IMPLAN® model is expressed in employment, labor income, and output.
`Employment includes all full-time, part-time, and temporary jobs created by or as a result of the
`event in question. Labor income includes all forms of employment compensation including
`employee wages, salaries, and benefits as well as proprietor income. Output is a measure of total
`sales or receipts and other operating income, plus inventory change. It is the sum of the final
`purchases and intermediate inputs.
`
`University Operations
`
`In FY 2017, UNM made operational expenditures totaling $2.2 billion. As noted earlier, university
`operations have a net positive impact on the New Mexico economy when they are funded by revenue
`that originates outside the state. Forty-seven percent of UNM’s annual revenue, about $1.1 billion,
`comes from out-of-state sources including tuition and fees paid by non-residents, federal grants,
`and payments by Medicare and Medicaid for clinical services provided by UNM Hospital and UNM
`Medical Group.
`
`Figure 1: UNM 2017 Revenue by Source
`
`Source: University of New Mexico - Consolidated Total Operations Current Funds. Statements of Revenues, Expenses and
`Changes in Net Position for the twelve month ended June 30, 2017
`
`3
`
`1%
`
`2%
`
`2%
`
`1%
`
`3%
`
`8%
`
`1%
`
`4%
`
`54%
`
`Tuition & Fees
`
`13%
`
`State & Local Appropriations
`
`Federal Grants & Contracts
`
`Clinical services
`
`Mil Levy
`
`11%
`
`State & Local Grants & Contracts
`
`Private Grants & Contracts
`
`Indirect Overhead
`
`Sales & Services
`
`Gifts
`
`Other
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`1.1 Revenue
`
`Patient revenue from UNM Hospitals and Medical Group made up the single largest share of
`UNM’s revenue in 2017 (55%). State and local appropriations constituted 13 percent of revenue, the
`second largest share.
`
`Figure 1 shows 2017 UNM revenue by source. Payments from Medicare and Medicaid make up
`two-thirds of patient revenue from UNM Hospitals and Medical Group. Medicare is 100 percent
`federally funded and funding for New Mexico Medicaid is split between the federal and state
`governments at an average rate of roughly 80:20. Thus, the majority of revenue from clinical services
`originates outside New Mexico.
`
` Tuition and fees, including scholarships and grants, constituted 7.8 percent of UNM’s 2017
`revenue. That year, 17 percent of UNM students were non-residents. Although non-resident tuition
`rates are considerably higher than in-state rates, a large percentage of non-residents pay in-state
`tuition, thus, the number of non-resident full-time students was used to determine the out-of-state
`share of tuition and fees.
`
`The UNM Foundation generated gift revenue of $15.5 million in 2017. Eighteen percent of gifts
`were made by parties located outside of New Mexico.
`
`Table 3 shows UNM operations revenue and the share of revenue derived from out-of-state
`sources. Overall, 47 percent of UNM’s 2017 operating revenue was derived from sources outside
`New Mexico. When spent in New Mexico, this external revenue produces a direct economic impact.
`
`Table 3: UNM 2017 Operating Revenue ($ millions)
`
`Revenue
`
`Tuition & Fees
`
`State & Local
`Appropriations
`Federal Grants & Contracts
`
`Clinical services
`
`Mil Levy
`
`State & Local Grants &
`Contracts
`Private Grants & Contracts
`
`Gifts
`
`Other
`
`Total
`
`$180.0
`
`$306.3
`
`$247.7
`
`$1,262.6
`
`$96.6
`
`$36.0
`
`$38.4
`
`$15.5
`
`$135.6
`
`$2,318.7
`
`Percent From a
`Source Outside NM
`17%
`
`0%
`
`100%
`
`57%
`
`0%
`
`0%
`
`86%
`
`18%
`
`48%
`
`47%
`
`Direct Impact
`Revenue
`
`$30.6
`
`$0.0
`
`$247.7
`
`$719.7
`
`$0.0
`
`$0.0
`
`$33.0
`
`$2.8
`
`$65.1
`
`$1,089.8
`
`Note: Bond proceeds are not included in revenue. Medicare and Medicaid payments are included in "Clinical Services" and
`excluded from “Federal Grants & Contracts.”
`
`Source: University of New Mexico - Consolidated Total Operations Current Funds. Statements of Revenues, Expenses and
`Changes in Net Position for the twelve month ended June 30, 2017 and author calculations
`
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`1.2 Expenditure
`
`UNM’s 2017 operational expenditures totaled $2.2 billion. Employee compensation and benefits
`accounted for majority of expenditures. In addition to educational services, UNM’s expenditures
`support the provision of research and development services, student services such as the Student
`Health Center and recreational facilities, and auxiliary operations, such as book stores, residence
`halls, and cafeterias.
`
`Figure 2: 2017 UNM Operations Spending
`
`$38
`
`$74
`
`$22
`
`$38
`
`$648
`
`$1,169
`
`$228
`
`Employee Salaries
`
`Employee Benefits
`
`Suppliers
`
`Utilities
`
`Scholarships & Fellowships
`
`Intergovernmental transfer to NM
`
`Other payments
`
`Source: University of New Mexico - Consolidated Total Operations Current Funds. Statements of Revenues, Expenses and
`Changes in Net Position for the twelve month ended June 30, 2017
`
`Table 4 shows the spending used to calculate the economic impact of UNM operations by
`functional expense categories. Clinical operations account for the largest single share of
`expenditures. Clinical operations include all the patient care activities of the HSC campus, including
`the UNM Hospitals, School of Medicine physician professional services, Cancer Center operations
`and medical residents who are being trained in the UNM hospitals. The next largest category of
`expenditures are those related to general academic instruction. Sponsored programs - research,
`instruction or public service projects involving funding from an outside source under a legal
`agreement - account for 17 percent of UNM expenditures. Sponsored projects are a significant
`source of research funding for both the HSC and main campus. Public Service includes expenses for
`activities established primarily to provide community services and other non-instructional services
`beneficial to individuals and groups external to UNM, such as conferences, institutes, reference
`bureaus, and public broadcasting services.
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`Table 4: UNM 2017 Expenditures by Functional Expense Category ($ millions)
`Expenditures
`Employee Compensation
`All Other Spending
`Instruction & General
`$382.1
`$83.5
`
`Public Service
`
`Sponsored Programs*
`
`Clinical Operations
`
`Total
`
`$17.7
`
`$169.3
`
`$768.3
`
`$1,337.3
`
`$21.1
`
`$199.9
`
`$586.3
`
`$890.8
`
`Total
`$465.6
`
`$38.8
`
`$369.1
`
`$1,354.6
`
`$2,228.1
`
`*Includes research expenditures of facilities and administration (F&A) revenue
`
`1.3 Methodology
`
`The economic impact of UNM operations was measured by inputting the share of UNM’s 2017
`spending that occurred in New Mexico and was funded by external sources into a model of the New
`Mexico economy and observing the effect those expenditures had on households, institutions, and
`industry.
`
`IMPLAN® was used to create the model of the New Mexico economy. In order to accurately
`capture the interplay between UNM expenditures and other components of the state economy, UNM
`spending was distributed across the corresponding industrial sectors within the IMPLAN® model.
`This allocation process linked UNM’s expenditures to the economic multipliers specific to the
`particular industrial activity.
`
`1.4 Results
`
`UNM’s 2017 operational expenditures contributed $2.1 billion in economic output and supported
`16,402 full time, part-time, and temporary jobs providing $876 million in income to New Mexico
`workers. Consistent with the export-base methodology described earlier, only expenditures made
`in New Mexico with funds originating outside New Mexico are counted in the estimation of UNM’s
`economic impact. Employee compensation and construction spending are counted as 100 percent
`in-state, while payments for goods and services supplied by out-of-state vendors are excluded.
`Depreciation and debt service payments are also excluded.
`
`Table 5: Economic Impact of University Operations ($ millions)
`
`Impact Type
`
`Employment
`
`Labor Income
`
`Output
`
`Direct Effect
`
`Indirect Effect
`
`Induced Effect
`
`Total Effect
`
`9,598
`
`2,687
`
`4,117
`
`16,402
`
`$614.1
`
`$109.8
`
`$152.0
`
`$876.0
`
`$1,197.4
`
`$349.2
`
`$525.8
`
`$2,072.5
`
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`The Statewide Economic Impact of The University of New Mexico
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`Student Expenditures
`
`Over 26,000 full and part-time students attend UNM. Eighty-three percent of students enrolled
`during the 2016-2017 school year were New Mexico residents. Spending by the school’s 4,485
`non-resident students totaled $53.5 million, supporting 821 full and part-time jobs, $21.2 million in
`labor income, and $78.5 million in economic output.
`
`2.1 Data
`
`Students from outside New Mexico made up 17 percent of UNM’s 2017 full-time student body.
`Spending by students who have temporarily moved to New Mexico to attend UNM has a positive
`impact on the New Mexico economy. Conversely, spending by students who lived in New Mexico
`prior to attending UNM does not count toward net economic impact because it is likely that, in the
`absence of UNM, those expenditures would still be made in New Mexico.
`
`Table 6 shows estimated annual expenditures by traditional, full-time UNM students. It is
`important to note that the values for tuition and fees assume no financial aid. Most UNM students
`have some form of financial aid and thus average actual expenditures for both tuition and fees for
`both resident and non-resident students are considerably lower than those presented in the table.
`
`Table 6: 2017 Estimated Average UNM Student Costs
`
`Estimated Costs Full-Time
`
`Resident
`
`Non-Resident
`
`Tuition & Fees
`
`Room & Board - Traditional
`
`Books & Supplies
`
`Transportation
`
`Miscellaneous
`
`Total
`
`$7,146
`
`$9,662
`
`$1,102
`
`$1,854
`
`$2,080
`
`$21,844
`
`$22,037
`
`$9,662
`
`$1,102
`
`$1,854
`
`$2,080
`
`$36,735
`
`Source: UNM Office of Admissions. https://admissions.unm.edu/costs-financial-aid/index.html
`
`2.2 Methodology
`
`To estimate the economic impact of non-resident student expenditures, the number of out-
`of-state and international students is multiplied by an estimate of per capita student expenditures.
`To avoid double counting, tuition, fees and student spending at establishments owned or operated
`by the university such as the bookstore and residence halls are excluded from estimated student
`expenditures. Similarly, an estimate of income earned by non-resident students employed by UNM
`is also subtracted from non-resident student expenditures because these funds have already been
`included in university operational spending. Student spending, net of tuition and fees, is assumed
`to average $14,686 annually, or $65.9 million for 4,485 non-resident students. Subtracting 17
`percent of UNM revenue from housing ($2.1 million), food ($387,000), and bookstores ($2.6 million)
`and 17 percent of salaries paid to UNM student employees ($7.2 million) yields $53.5 million in net
`
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`non-resident student spending. This amount is distributed across the corresponding IMPLAN®
`industrial sectors (Table 7). For retail purchases (books, supplies, some food, and “miscellaneous”)
`only the retail margin (47%) is counted as an in-state expenditure.
`
`Table 7: 2016-2017 Net UNM Non-Resident Student Spending ($million)
`
`Housing
`
`Food
`
`Books & Supplies
`
`Transportation
`
`Miscellaneous
`
`Total
`
`$19.3
`
`$16.6
`
`$2.1
`
`$7.3
`
`$8.2
`
`$53.5
`
`Source: Author calculations and UNM Office of Admissions
`
`2.3 Results
`
`Model results are shown in Table 8. In 2017, spending by non-resident UNM students supported
`822 full and part-time jobs, $21.2 million in labor income, and $78.6 million in economic output.
`
`Table 8: Economic Impact of Student Expenditure ($ millions)
`
`Impact Type
`
`Employment
`
`Labor Income
`
`Direct Effect
`
`Indirect Effect
`
`Induced Effect
`
`Total Effect
`
`627
`
`95
`
`100
`
`822
`
`$14.0
`
`$3.5
`
`$3.7
`
`$21.2
`
`Output
`
` $52.5
`
` $13.4
`
` $12.7
`
` $78.6
`
`Alumni Human Capital
`
`Education is an investment in human capital and human capital powers economic growth. UNM
`graduates who stay in New Mexico contribute to the state economy by enhancing the productivity
`of New Mexico’s workforce and increasing the productivity of New Mexico’s capital stock. Increased
`labor productivity translates into higher earnings for UNM alumni and more productive capital
`translates into higher income for businesses that employ UNM alumni.
`
`There is a strong and well-documented relationship between higher levels of educational
`attainment and higher earnings.2 Studies have also shown that that the impact of a college education
`on earnings is roughly equivalent to the earnings differential that exists between college-educated
`and high school-educated workers.3 Higher-income households also spend more on goods and
`services than less prosperous households.4 Because higher income is correlated with educational
`attainment, the local economic impact of the increased human capital attributable to a UNM
`
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`
`education can be measured by comparing spending on locally produced goods and services by
`college-educated New Mexicans to spending on locally produced goods and services by New Mexico
`adults with just a high school diploma.
`
`3.1 Data
`
`UNM has just over 184,000 living alumni. Fifty-eight percent, or about 107,000 alums, have a
`New Mexico home address.5 The economic impact estimate presented here assumes a 40-year
`working life and thus considers only alumni who graduated in 1977 or later. Over 93,200 of the UNM
`alumni currently residing in New Mexico graduated between 1977 and 2017.
`
`Table 9 shows average 2016 income by educational attainment for New Mexico workforce
`participants ages 25 through 64, the difference between average income at each level of educational
`attainment, the average income of adults with just a high school diploma, and the present value of
`the income differential between high school and college graduates over a 40-year career.
`
`In 2016, a New Mexico worker with no education beyond a regular high school diploma had
`average income of $34,023. Bachelor’s degree holders, by contrast, had average income of $55,374,
`a difference of $21,351, or 63 percent.6 Over 40 years of employment, the increment to income
`resulting from a bachelor’s degree would total $854,040 and have a present value of $493,533.a The
`present value of the lifetime incremental income from a doctoral or professional degree is roughly
`$1.9 million (Table 9).
`
`Table 9: Income by Educational Attainment, New Mexico Labor Force Participants Ages 25 through 64, 2016
`Average Annual
`Incremental Income from Additional Education
`Income
`Present Value Over a
`40-Year Career.
`
`Income Differential
`
`Regular high school diploma
`Some college, but <1 year
`1+ years of college, no degree
`Associate's degree
`Bachelor's degree
`Master's degree
` Professional degree beyond BA
`Doctoral degree
`
`$34,023
`$36,751
`$38,456
`$41,778
`$55,374
`$71,805
`$127,013
`$118,224
`
`--
`$2,728
`$4,433
`$7,755
`$21,351
`$37,782
`$92,990
`$84,201
`
` Source: Author calculations from 2016 American Community Survey New Mexico 5 Year Public Use Micro-Sample
`
`a Assumes a 3 percent annual discount rate.
`
`--
`$63,057
`$102,468
`$179,255
`$493,523
`$873,322
`$2.1 MM
`$1.9 MM
`
`9
`
`Ex. 2003 - IPR2021-00375
`Qualcomm Incorporated v. UNM Rainforest Innovations
`
`

`

`The Statewide Economic Impact of The University of New Mexico
`
`Figure 3 shows UNM alumni with a 2017 New Mexico address by highest degree attained and
`graduation year.
`
`Figure 3: UNM Alumni Residing in New Mexico by Highest Degree and Year of Graduation
`
`2016
`2013
`2010
`2007
`2004
`2001
`1998
`1995
`1992
`1989
`1986
`1983
`1980
`1977
`
`0
`
`1000
`
`2000
`
`3000
`
`4000
`
`5000
`
`6000
`
`Associates & certificate
`
`Undergraduate degree
`
`Master's degree
`
`Doctorate or professional
`
`Source: UNM Office of Institutional Analytics
`Note: 2016 data may be incomplete
`
`College graduates are more likely than non-graduates to participate in the labor force.7 Figure
`4 shows 2016 labor force participation rates for New Mexicans ages 25 through 64 by highest level
`of education. Eighty-two percent of bachelor’s degree holders are in the labor force, compared to
`68 percent of New Mexicans with a regular high school diploma and 58 percent of New Mexicans
`who did not finish high school.
`
`Figure 4: Labor Force Participation Rates: New Mexicans 25 through 64, by Educational Attainment, 2016
`
`68%
`
`61%
`
`70%
`
`58%
`
`74%
`
`78%
`
`82%
`
`83%
`
`82%
`
`86%
`
`100%
`
`80%
`
`60%
`
`40%
`
`20%
`
`0%
`
`Source: US Census. 2016 American Community Survey
`
`10
`
`Ex. 2003 - IPR2021-00375
`Qualcomm Incorporated v. UNM Rainforest Innovations
`
`

`

`The Statewide Economic Impact of The University of New Mexico
`
`Each year, UNM alumni earn roughly $2.3 billion more than they would with just a high school
`diploma (Table 10).
`
`Table 10: NM Residents Awarded a UNM Degree Between 1977 and 2016: Income Increase from Higher Education
`Incremental Annual
`Highest degree attained
`Income from Education
`per Worker
`
`Total Additional
`Annual Income
`
`UNM
`Alumni
`
`Alumni Workforce
`Participation Rate
`
`Associates & certificate
`Undergraduate degree
`Master's degree
`Professional degree
`Doctoral degree
`Total
`
` 7,826
` 55,020
` 21,477
` 790
` 8,126
`93,239
`
`78%
`82%
`83%
`82%
`86%
`n/a
`
`$7,755
`$21,351
`$37,782
`$92,990
`$84,201
`n/a
`
`$47.1 MM
`$959.2 MM
`$671.8 MM
`$60.1 MM
`$589.4 MM
` $2,327.6 MM
`
` Source: UNM Foundation, US Census American Community Survey, and author calculations
`
`Economists refer to the share of household income devoted to the purchase of goods and
`services as the “marginal propensity to consume” (MPC). The US Bureau of Labor Statistics’ Consumer
`Expenditure Survey (CES) collects data on the spending patterns of households in the US. Data from
`the CES can be subdivided by household characteristics such as region, income, and education. CES
`data for households in the western US were used to estimate the marginal propensity to consume
`for New Mexicans at different levels of income and education.8 Because the present analysis is
`concerned with the share of consumption spending that remains in the New Mexico economy, the
`data were further parsed to identify the subset of purchases most likely to be made locally. For
`purposes of this analysis, the share of income devoted to consumption of locally produced goods
`and services is defined as the “marginal propensity to consume locally” (MPC-L). To estimate the
`MPC-L, the goods and services included in the CES are defined as “local” or “non-local.” Housing,
`healthcare, utilities, personal services, property maintenance, and restaurant expenditures are
`assumed to be entirely local, whereas most goods, including food for consumption at home, clothing,
`vehicles, gasoline, medical equipment, and drugs, as well as some services, such as insurance, are
`assumed to be produced outside New Mexico.b, c These calculations and the resulting estimate of
`total in-state spending are presented in Table 11.
`
`Additional spending by UNM gradu