New report shows Iowa “brain drain” has cost billions

Edited release
02/03/26

A new report from the Common Sense Institute  finds Iowa is losing a significant share of graduates from its public universities to out-migration, resulting in an estimated $96 billion in lost earnings from the 2001–2021 graduating classes.

The report examines post-graduation retention outcomes across Iowa’s three public universities and estimates the long-term economic impacts of graduate out-migration on Iowa’s workforce, tax base, and economic growth.

One of the key findings in the report shows only about half of graduates remain in Iowa ten years after graduation, even though in-state students make up about 75% of full-time enrollment.

Had those graduates remained in Iowa, the Institute estimates Iowa’s 2025 economy would be $7 billion larger in Gross Domestic Product, $12 billion greater in output, $11 billion more in total statewide personal income, and $9.7 billion more in total statewide disposable personal income.

The University of Iowa posted the lowest ten-year retention rate: Iowa residents are 61.9% of undergraduates, but only 37.7% of graduates remain in Iowa ten years after graduation.

A link to the full report is available below.

https://www.commonsenseinstituteus.org/iowa/research/education/educate-graduate-leave