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March/April 2016 – BizVoice/Indiana Chamber
15
FOUND ELSEWHERE
It’s Not Just the Money
The value of a college education is often presented in purely
monetary terms, probably because the average monetary payoff from a
college degree is so high. The substantial financial rewards from
obtaining college degrees are well known and documented. The link
between college attainment and economic prosperity has been clearly
demonstrated for individuals, as well as for cities, states and nations.
It is no secret that the financial payoff is only one of the benefits
from a college education. But the other benefits, and particularly their
magnitudes, are considerably less well known. These other benefits of
college education are often difficult to quantify and harder to
demonstrate.
A Lumina Foundation issue paper titled
It’s Not Just The Money:
The Benefits of College Education to Individuals and Society
highlights many
of the frequently unmeasured and ignored benefits of college
attendance. Below are just four charts from a 72-page study, authored
by Philip Trostel of the Margaret Chase Smith Policy Center & School
of Economics at the University of Maine. The full report can be found
at
www.luminafoundation.org.
Volunteer Service
Less Than
High School
Diploma
High School
Diploma
Some
College
Associate
Degree
Bachelor’s
Degree
Advanced
Degree
0%
10%
20%
30%
40%
50%
9.1%
17.4%
28.0%
31.1%
40.3%
48.5%
Source: Author’s calculations using the September 2012 Volunteer Supplement of
the Current Population Survey, ages 27-66 and not enrolled in college.
Not in the Labor Force
Less Than
High School
Diploma
High School
Diploma
Some
College
Associate
Degree
Bachelor’s
Degree
Advanced
Degree
0%
10%
20%
30%
40%
50%
40.8%
28.7%
23.5%
19.2%
16.4%
13.6%
Source: Author’s calculations using the 2012 American Community Survey, ages
27-66 and not enrolled in college.
Total Lifetime Fiscal Effects
Less Than
High School
Diploma
High School
Diploma
Some
College
Associate
Degree
Bachelor’s
Degree
Advanced
Degree
■
Taxes Paid
■
Government Expenditures
0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$125,510
$288,329
$237,369
$211,431
$307,089
$180,110
$333,373
$161,245
$510,814
$129,762
$668,046
$120,056
Source: Author’s estimates using several datasets. The present value of total taxes includes
Social Security taxes. The present value of total expenditures includes Social Security
retirement benefits, Medicare, all public assistance, all social insurance, the government
cost of uninsured health care and corrections.
Self-Reported Health
Less Than
High School
Diploma
High School
Diploma
Some
College
Associate
Degree
Bachelor’s
Degree
Advanced
Degree
0%
10%
20%
30%
40%
50%
60%
70%
80%
■
Excellent
■
Excellent or Very Good
15.0%
38.4%
19.5%
50.5%
23.5%
57.4%
25.2%
61.3%
34.7%
72.6%
39.2%
76.1%
Source: Author’s calculations using the March 2013 Social and Economic Supplement
of the Current Population Survey, ages 27-66 and not enrolled in college.