This paper considers how a state such as Michigan can increase the economic development benefits of higher education. Research evidence suggests that higher education increases local economic development principally by increasing the quality of the local workforce, and secondarily by increasing...

I thank Claire Black and Wei-Jang Huang for assistance in preparing this paper. I appreciate the comments of George Erickcek on a preliminary version of this paper. This paper was previously presented on November 20, 2009 at the 57th Annual Economic Outlook Conference of the Research Seminar in...