Abstract
The purpose of this chapter is to chronicle the economic impact that 107 HBCUs have made in their community, in particular, and in the United States generally. There is a need and a duty to educate the communities and inform the nation the critical roles HBCUs play in the lives of the graduates of these institutions. The chapter will robustly reference the seminal study, “HBCUs Make America Strong: The Positive Economic Impact of Historically Black Colleges and Universities,” commissioned by UNCF's Frederick D. Patterson Research Institute. The report shows that the economic benefits of HBCUs extend to more than just the students themselves. They are equally important to the communities, and the regions, that HBCUs have served for more than 100 years.
TopIntroduction
Price et al (2011) writes about the positive impact of students who graduate from HBCUs versus those that graduate from non-HBCUs. Their study found a positive correlation in graduating from an HBCU as follows:
As our direct labor market outcome measure reflects permanent earnings, our results suggest that as HBCUs afford graduates relatively superior long-run returns they continue to have a compelling educational justification, as the labor market outcomes of their graduates are superior to what they would have been had they graduated from a non-HBCU. (Price et al., 2011)
Allen, et al (2007) captured the importance role that HBCUs play in the African American community and United States when they concluded that
HBCUs play important roles in the perpetuation of Black culture, the improvement of Black community life and the preparation of the next generation of the Black leadership… education is culturally specific; education is rooted in and reflects the conditions, world view and purposes of its parent society. (Allen et al., 2007)
Humphries and Korb in their 2010 article wrote that “The Higher Education Act of 1965, as amended, defines an HBCU as ...any historically black college or university that was established prior to 1964, whose principal mission was, and is, the education of black Americans. The first HBCU, African Institute, and presently called Cheyney University of Pennsylvania was founded in 1837. Today, there are 107 HBCUs with more than 300,000 students enrolled and employing more than 15,000 faculty. Fifty-six institutions are under private control, and 51 are public colleges and universities in 23 States and the District of Columbia. Most are in the Southeastern parts of the United States and in many instances are near areas with relatively low levels of economic well-being, where generating economic activity is particularly important. Sixteen are in Alabama, twelve in Georgia, twelve in North Carolina, nine in Texas, six in Louisiana, seven in Mississippi, eight in South Carolina, and seven in Tennessee. Three of these institutions are currently closed – one each in Alabama, Michigan, and Virginia. There are a few of them that are not recognized by the Department of Education as HBCUs. The most minority students are enrolled in HBCUs in North Carolina. Bevins et al (2021) states that since the first founding, … Historically Black colleges and universities (HBCUs) have established themselves as anchor institutions in their communities and critical platforms for the education and advancement of students of color. As will be demonstrated in this chapter, HBCUs have been economic engines in their communities and the entire nation. Although the pandemic and other factors have contributed to the decline in enrollment in colleges and universities overall, HBCUs have sustained operations. Several organizations and governmental units and agencies have recently redoubled their efforts to assist and enable HBCUs to sustain operation. One of those is the White House Initiative on Historically Black Colleges and Universities. Its work is organized in three major focus areas: Policy, Projects, and Programs.
TopBackground
In their article, Dreaming and Doing at Georgia HBCUs: Continued Relevancy in ‘Post-Racial’ America, Broady et al (2017) make the case for the continued importance of HBCUs in the state of Georgia. They make a strong point that these institutions contribute to the economic development of the entire state, and they conclude that:
Key Terms in this Chapter
Economic Impact: This is the financial or monetary effect that an expenditure has on another situation.
Employment: Engaging in activity for compensation or payment.
African American: These are American citizens who are of Black African origin and descent.
Lifetime Earnings: These total earnings of an individual over a 50-year period of gainfully employed.
Economy: The economy of a country describes its wealth regarding the production and consumption of goods and services.
Investments: Putting money in an activity for monetary gain.
HBCUs: Historically Black Colleges and Universities. These are Universities that meet the Federal definition as described in the 1965 Education Act for those schools that were established before 1964 for the purposes of educating black citizens.