Commentary
Researching the Economic Contribution of Public Libraries
Brian Ashley
Director,
Libraries
Arts Council
England
Manchester,
United Kingdom
Email: brian.ashley@artscouncil.org.uk
Vivien
Niblett
Senior
Officer, Policy & Research (Evaluation)
Arts Council
England
Manchester,
United Kingdom
Email: vivien.niblett@artscouncil.org.uk
Received: 2 Sept. 2014 Accepted:
14 Nov. 2014
2014 Ashley and Niblett. This is an Open
Access article distributed under the terms of the Creative Commons‐Attribution‐Noncommercial‐Share Alike License 4.0 International (http://creativecommons.org/licenses/by-nc-sa/4.0/), which permits unrestricted use,
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resulting work is redistributed under the same or similar license to this one.
The Economic Contribution of Arts and Culture
Arts Council England
champions, develops, and invests in artistic and cultural experiences that
enrich people's lives. Since 2011 we have been responsible for supporting and
developing public libraries in England. To inform our wider contribution and to
provide a focus for the development of public libraries in England, we
undertook some substantial research into the role of public libraries in the
future. The resultant study was called Envisioning
the Library of the Future (Arts Council England, 2013).
Following on from this, and
in a context of reduced public spending, Arts Council England invested in a
strand of research to identify and measure the contribution arts and culture
make to the national economy (Centre
for Economics and Business Research, 2013). The study used economic impact
assessment methods to estimate the value of the arts and culture sectors.
However, the approaches used were not appropriate for the valuation of public
libraries, whose service model does not have clear financial outputs measurable
through national accounts. This left not only a gap in the evidence available
at a national level about what library services contribute to the economy, but
also a question of how to gather this evidence.
Studies had been carried
out that measured the economic impact of libraries, including some local
studies in the UK and national abroad. However, we were not aware of work
exploring the indirect ways in which libraries could make an economic
contribution– for example, by reducing demand on health services through public
health promotion, or providing internet and information access that helps
people improve their job prospects. We wanted to explore whether these benefits
could be valued.
We felt undertaking
research to explore this issue would help us in our role to develop and
advocate the public value of libraries and would enable both Arts Council
England and the wider libraries sector to understand how libraries make an
economic contribution.
Developing a Model of Economic Contribution
The first stage was to
establish a need for and interest in a study of economic contribution. There
are a number of different ways in which libraries can be seen to create
economic value, so we wanted to focus the work by developing a theoretical
model which could be tested.
Partners, such as the
Society of Chief Librarians, the British Library, and the Local Government
Association, came together for an initial scoping meeting with Arts Council
England which aimed to:
a) Establish the level of
interest and need for this work in the libraries sector;
b) Establish where there are
gaps in evidence around the economic contribution of libraries;
c) Begin to develop a model of
how we believe libraries make an economic contribution; and
d) Identify any priority areas
of investigation.
We used ideas generated in
this discussion to develop models, based on the concept of Logic Models (W.K
Kellogg Foundation, 2004), of how libraries might contribute to the economy.
These became the lines of enquiry for a desk-based evidence review which aimed
to identify and synthesize the existing evidence available and to further test
and develop the models.
Evidence Review
The commissioned evidence
review summarised the different approaches taken to the question of economic
contribution and identified strengths and weaknesses in the evidence base for
the educational and social impact of public libraries and its associated
economic value (Arts Council England, 2014). A summary of these findings are
reproduced below.
Economic Valuation Studies of Public
Libraries
As the traditional metrics
for measuring the economic contribution of an industry are not appropriate in a
public library context, researchers have used a number of different methods for
quantifying the economic value of libraries. Three different hypotheses as to
how public libraries make a contribution to the economy were identified:
- as economic actors in their own right
(economic impact)
- as institutions that facilitate the
creation of economic value in the adjacent area and local economy
(place-based economic development)
- as organizations that deliver a wide
range of services, most of which are valued by both users and non-users
when set against their costs of provision (benefit-cost/total economic
value approaches)
All three hypotheses
require empirical methods based on the collection of primary data, which makes
them both bespoke and relatively expensive. They are not designed to add up to
an aggregate picture of the economic value of public libraries in England nor
for their results to be comparable.
The economic impact
literature shows that public libraries employ people and spend money, having a
knock-on effect in the local economy, through supply chain expenditures and the
wage expenditure of employees. A few large library facilities may also trigger
significant ancillary spending in the local economy by visitors who are drawn
to the area by the library. Economic impact assessment is well tried and tested
within other industry contexts in the UK and in other country contexts with
regards to libraries (specifically the US). However, it has few merits for
libraries within a U.K. public policy context because libraries simply do not
have the characteristics to perform well in relation to the additional
requirements that are embedded in public policy economic impact appraisals in
the UK.
Libraries’ contribution to
wider place-based economic development is an area which suggests greater
promise based on the existing current case studies both in the UK and
internationally. Libraries can be anchor tenants in mixed-use physical
developments and regeneration initiatives, potentially boosting the footfall,
buzz, image, and profile of a neighbourhood or area particularly if the library
is new, large, or housed in an iconic building. Finally, where specialist
services are provided, libraries can also support local economic development
through business advice and support for individuals, micro businesses, and
SMEs.
However, the evidence base
on libraries’ contribution to wider place-based economic development is at
present under-developed. It is based on only a small number of case studies,
which vary greatly in detail and lack longitudinal analysis and attempts to
account for other factors that may also have contributed to identifiable
regeneration and local economic development.
The most numerous are
benefit-cost studies and, in the case of contingent valuation (CV) methods,
have the potential to gain the most traction with national government
stakeholders.
There is near universal
consistency across these studies in reporting positive benefit-cost ratios for
public libraries, demonstrating that societies value public libraries over and
above what they pay for them collectively. However, this benefit-cost varies in
a range across one-and-a-half, twice, or 10 times the cost of provision. These
approaches, particularly CV methods, are both very expensive and complex to
undertake to a credible standard, and their robustness around libraries can be
compromised due to a range of methodological weaknesses. The choice of methods
and assumptions appears to have a consistent bearing on benefit-cost ratios.
Finally, there are three
challenges to gain a comprehensive sense of economic contribution:
- The various estimation techniques are
all focused on producing a single figure for the impact, value, or return
on investment from the service as a whole. They pay little attention to
how the constituent library services, resources, and buildings generate
this value (aside from some revealed preference studies that look at one
or two services only, such as book and media lending).
- This emphasis on the aggregate
quantification of value can also seem somewhat abstract. For instance, it
does not generate the kind of evidence that facilitates detailed decision
making and therefore it can seem remote from the day-to-day reality of
service planning and budget setting. Relatedly, using economic valuation
methods alone means that it can be hard to communicate the benefits of
libraries to non-economist audiences. All the methods require some degree
of technical knowledge to properly understand, with CV studies being
particularly complicated and specialist.
- Lastly, studies really only measure the
short term economic value of library services. This means that the wider
value to society in the present is not captured and neither is the value
of these in the future.
These structural weaknesses
in economic valuation approaches mean that literature from disciplines other
than economics is required in order to understand in more detail and more
holistically, how public libraries make an economic contribution to society.
Studies
on Libraries’ Educational and Social Impact
The Evidence Review goes on
to consider libraries’ educational and social impact within five key areas,
chosen to cover the main activities currently taking place across the library
service:
Children and Young People’s Education and
Personal Development
Existing research provides
compelling evidence that library usage is linked to reading levels among
children and young people, and that library usage and reading, in turn, are
important factors in literacy skill levels and general educational attainment.
Some research also suggests that the quality of public libraries’ space supports
educational attainment. While there is no evidence of the direct financial
benefits of libraries’ impact specifically, some recent studies indicate the
private and public economic benefits that would be obtained by addressing low
literacy and education levels.
Adult Education, Skills and Employability
While some surveys have
established a link between adult reading habits and library usage, it remains
difficult to confirm the direction of causation between the two. Similarly,
there is only limited available evidence of their impact on adult literacy
levels. Recent large-scale US-based surveys demonstrate that adults use
libraries’ information and communications technology (ICT) provision in
particular to support their learning and for job searching activities.
Literature from the UK also provides evidence of the provision of job support
services, if not evidence of impact. Overall, research in the UK on adult
learning, skills development, and library-based employment support remains
largely focused on local, smaller-scale studies.
Health and Wellbeing
While there is no
consistent data on the provision of library-based health and wellbeing
activities, existing research suggests that such activities are increasingly
becoming a core part of the public library offer in the UK. Bibliotherapy
activities are now widely available across public libraries in the UK and
computer-based cognitive behavioural therapy (cCBT)
activities are increasing. Existing research also suggests strong correlations
between reading and mental health benefits, as well as a link between literacy
and health literacy – people’s ability to access and use health information.
For all of these reasons, libraries contribute to the health “prevention
agenda”. A small number of studies also suggest library-based health provision
could contribute to reducing the current high costs of ill health. Evidence is
lagging behind practice in terms of demonstrating what benefits service
providers may get from using libraries to deliver health activities, although
several UK-based case studies suggest that libraries are valued for their
non-clinical atmosphere and community reach.
Community Support and Cohesion
Current research
demonstrates that a majority of library users and non-users consider libraries
important for their community and suggests that libraries may play an important
role in contributing to the social capital of communities. Evidence exists in
particular for libraries’ contribution to facilitating social contact and
mixing within local communities, as well as through increasing levels of trust
among people. Existing research also demonstrates that people place a high
trust in libraries themselves as institutions. While it might be argued that
this may contribute to wider trust in institutions in general – a further
marker of social capital – there is currently little evidence to support this.
Several studies further suggest that through increasing social capital,
libraries contribute to enhanced community cohesion and thereby, to healthier,
safer communities. Although evidence of the impact of cohesion on reducing
deprivation is limited, the cost of ill health and crime within communities
illustrates the potential cost savings that could be realized through healthier
and safer communities.
Digital Inclusion
Studies demonstrate a high
level of available ICT provision across the public library networks, as well as
the high usage of this provision by library users and the role libraries thus
play in increasing digital inclusion. Evidence also shows that library ICT
provision is frequently used by visitors to gain information important to their
everyday life including education, work, and social networks. In addition,
several recent studies highlight the personal benefits of digital inclusion by
increasing employability in addition to the cost savings to the state through
services increasingly being provided online under the “digital by default”
agenda.
Summary
of the Evidence
The existing literature on
the educational and social benefits of libraries naturally contains limitations
and weaknesses, in particular issues around:
- a general lack of longitudinal studies
and surveys/studies
- fulfilling the requirements in the
health sector for clinical studies
- a lack of management and impact data on
libraries’ various local services and their users and partners that can be
aggregated
- the difficulty of establishing causality
between library usage and a range of outcomes
- a lack of evidence of
the savings to the state generated by libraries regarding the downstream
outcomes that libraries contribute toward.
However, evidence is
already sufficient to conclude that public libraries:
- provide positive outcomes for people and
communities in many areas – far exceeding the traditional perception of
libraries as just places from which to borrow books;
- contribute to long term processes of
human capital formation, the maintenance of mental and physical wellbeing,
social inclusivity, and the cohesion of communities;
- make a real economic
contribution to the UK that is long term with financial benefits that
arise downstream from libraries’ activities, and that takes place through
multi-dimensional, complex processes of human and social development.
This suggests that
attempting to derive a realistic and accurate overall monetary valuation for
public libraries will be very hard to achieve. It also shows that measuring
libraries’ short term economic impact provides only a very thin, diminished
account of their true value.
In-Depth Study
The Evidence Review left no
illusions about the complexity and challenges presented by the task of
capturing the long terms contribution of public libraries to the national
economy. However, Arts Council England remains committed to delivering evidence
that will have a significant benefit in the active and live debates about the
role of and future for public libraries.
We chose to continue this
work by commissioning an in-depth study which focused on one of the five policy
strands identified by the evidence review. Following discussion with
stakeholders, it was agreed that this area would be health and wellbeing. It
was felt that this is an area in which libraries are increasingly active, and
where robust evidence would assist in making the case when commissioning
services.
The key research questions
of this study are:
- What is the £ value contributed by
libraries through their impact on health and wellbeing at both a national
and local level?
- How is this value created, and what is
the specific role of library services, programmes, buildings, or staff in
this process?
- To whom does this value accrue? How does
value change for different end users, such as different parts of the
public sector, or individuals and communities with different backgrounds?
This study has now begun
and will be undertaken in the period up to February 2015 with an intention to
publish the findings in the spring of 2015. The findings of this study should
assist library services and stakeholders to articulate the value and
contribution of libraries through robust and credible evidence.
References
Arts Council England. (2013). Envisioning the library of the future. Manchester: Arts Council England. Retrieved from http://www.artscouncil.org.uk/what-we-do/supporting-libraries/library-of-the-future/
Arts Council England. (2014). Evidence review of the economic contribution
of libraries. Manchester: Arts
Council England. Retrieved from http://www.artscouncil.org.uk/advice-and-guidance/browse-advice-and-guidance/evidence-review-economic-contribution-libraries
Centre for Economics and Business Research.
(2013). The contribution of the arts and culture to the
national economy. Manchester: Arts
Council England. Retrieved from http://www.artscouncil.org.uk/advice-and-guidance/browse-advice-and-guidance/contribution-arts-and-culture-national-economy
W.K Kellogg Foundation. (2004). Logic model development guide. Michigan:
W.K Kellogg Foundation. Retrieved from https://www.wkkf.org/resource-directory/resource/2006/02/wk-kellogg-foundation-logic-model-development-guide