The phenomenon of Wisconsin's ""brain drain"" has become a common buzzword in business circles in the past decade. However, what exactly is this brain drain, and does it really exist? Furthermore, what does this trend mean for new grads of UW-Madison?
The brain drain is ""the tendency of the college-educated population in Wisconsin to shrink as measured against the national average,"" according to the Wisconsin Technology Network. However, this problem is not limited to Wisconsin.
According to the Wisconsin Technology Network, the college graduate retention rate for Wisconsin is comparable to those of other Midwestern states, although the percentage of Wisconsinites 25 years and older with a Bachelors degree or higher was 25.6 percent in 2004, compared to 27.7 percent nationally.
The problem with Wisconsin's loss of college grads is two-fold.
""The state invests a large amount of tax revenue into subsidizing UW students,"" said Steve Schroeder, Director of the School of Business.
Some see this investment as a problem when the grads move elsewhere in the country. However, Schroeder noted that many students also come from other states to live and work in Wisconsin.
However, more concerning than a loss of tax revenue may be the less obvious issue of Wisconsin's position in the new technology-based economy. Some fear that Wisconsin is slipping behind the times in the current face-paced technological world. The Milwaukee Journal Sentinel reported ""Wisconsin lacks important tools to flourish in the technology-driven 21st century—and unless it develops them soon, the state could suffer in the competition for the best, brightest and best-paid.""
According to Schroeder, Wisconsin traditionally has had an agricultural and manufacturing-based economy, which means that Wisconsin as a whole has not developed urban centers like Chicago or Minneapolis. When it comes to financial-based companies, investment banking and other businesses. Wisconsin also lags behind in providing competitve salaries for such positions, although as a trade-off the cost of living in Wisconsin is lower than in large cities like Chicago.
However, the small amount of jobs in the business sector is not the only reason that graduates leave the state.
""Students leave the state, but it's not just for jobs,"" Schroeder said. ""It's an opportunity for students to go and live in a big city.""
Many reports about the brain drain do not take into account the amount of Wisconsin graduates that ultimately return to Wisconsin.
""It is not unusual for college graduates who leave the state to return when they are married and are ready to have a family,"" Secretary of the Wisconsin Department of Commerce. Mary Burke said. ""...Those who want to try living elsewhere most likely will return with unique ideas and experiences that will benefit Wisconsin.""
Measures are in the works to improve the job market and economy of Wisconsin by recruiting and training Wisconsin graduates, especially in the technology sector.
""Wisconsin has some of the most successful, innovative companies...that are growing and adding jobs,"" Burke said. ""Our biotech industry has been growing at nearly 15 percent per year and now accounts for nearly 30,000 jobs.""
Large employers in Wisconsin include Kohl's, Kimberly-Clark, Harley Davidson, Kohler and SC Johnson.
As for UW-Madison's graduates, perhaps the future is not so bleak as previously thought.
""In our office [at the School of Business] we do everything we can to bring in local companies,"" Schroeder said. ""There are opportunities within Dane County, Milwaukee and the Fox Valley, as well as in the rest of the state.""
