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Preaching Beyond the Choir
Communicating the Vast and Complex Value of Public
Research Universities Succinctly and Effectively
--ORmdash
The Public Value of Public Universities
In the National Dialog
Teri Lucie Thompson Kay Bailey Hutchison Philip Trostel and Julia Weede
2
Making the Invisible Visible
3
Connecting public and practitioners
4
Message Penetration Medium amp Message
5
Insights from many perspectives
Audience
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
THE VALUE OF PUBLIC RESEARCH UNIVERSITIES
The Honorable Kay Bailey Hutchison Senior Counsel Bracewell LLP Email Kay BaileyHutchisonbracewelllawcom Phone (214) 758-1042
7 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Every Secretary of Defense I have known has said that a major part of the margin of victory possessed by our military forces must be attributed to advancements in science and technology Numerous studies show that up to 87 percent of GDP growth in this country comes from advances in just two closely related disciplines science and technology Yet only 5 percent of the workforce in America are scientists or engineers Norm Augustine Former CEO Lockheed Martin
8 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
2
Making the Invisible Visible
3
Connecting public and practitioners
4
Message Penetration Medium amp Message
5
Insights from many perspectives
Audience
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
THE VALUE OF PUBLIC RESEARCH UNIVERSITIES
The Honorable Kay Bailey Hutchison Senior Counsel Bracewell LLP Email Kay BaileyHutchisonbracewelllawcom Phone (214) 758-1042
7 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Every Secretary of Defense I have known has said that a major part of the margin of victory possessed by our military forces must be attributed to advancements in science and technology Numerous studies show that up to 87 percent of GDP growth in this country comes from advances in just two closely related disciplines science and technology Yet only 5 percent of the workforce in America are scientists or engineers Norm Augustine Former CEO Lockheed Martin
8 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
3
Connecting public and practitioners
4
Message Penetration Medium amp Message
5
Insights from many perspectives
Audience
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
THE VALUE OF PUBLIC RESEARCH UNIVERSITIES
The Honorable Kay Bailey Hutchison Senior Counsel Bracewell LLP Email Kay BaileyHutchisonbracewelllawcom Phone (214) 758-1042
7 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Every Secretary of Defense I have known has said that a major part of the margin of victory possessed by our military forces must be attributed to advancements in science and technology Numerous studies show that up to 87 percent of GDP growth in this country comes from advances in just two closely related disciplines science and technology Yet only 5 percent of the workforce in America are scientists or engineers Norm Augustine Former CEO Lockheed Martin
8 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
4
Message Penetration Medium amp Message
5
Insights from many perspectives
Audience
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
THE VALUE OF PUBLIC RESEARCH UNIVERSITIES
The Honorable Kay Bailey Hutchison Senior Counsel Bracewell LLP Email Kay BaileyHutchisonbracewelllawcom Phone (214) 758-1042
7 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Every Secretary of Defense I have known has said that a major part of the margin of victory possessed by our military forces must be attributed to advancements in science and technology Numerous studies show that up to 87 percent of GDP growth in this country comes from advances in just two closely related disciplines science and technology Yet only 5 percent of the workforce in America are scientists or engineers Norm Augustine Former CEO Lockheed Martin
8 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
5
Insights from many perspectives
Audience
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
THE VALUE OF PUBLIC RESEARCH UNIVERSITIES
The Honorable Kay Bailey Hutchison Senior Counsel Bracewell LLP Email Kay BaileyHutchisonbracewelllawcom Phone (214) 758-1042
7 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Every Secretary of Defense I have known has said that a major part of the margin of victory possessed by our military forces must be attributed to advancements in science and technology Numerous studies show that up to 87 percent of GDP growth in this country comes from advances in just two closely related disciplines science and technology Yet only 5 percent of the workforce in America are scientists or engineers Norm Augustine Former CEO Lockheed Martin
8 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
THE VALUE OF PUBLIC RESEARCH UNIVERSITIES
The Honorable Kay Bailey Hutchison Senior Counsel Bracewell LLP Email Kay BaileyHutchisonbracewelllawcom Phone (214) 758-1042
7 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Every Secretary of Defense I have known has said that a major part of the margin of victory possessed by our military forces must be attributed to advancements in science and technology Numerous studies show that up to 87 percent of GDP growth in this country comes from advances in just two closely related disciplines science and technology Yet only 5 percent of the workforce in America are scientists or engineers Norm Augustine Former CEO Lockheed Martin
8 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
7 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Every Secretary of Defense I have known has said that a major part of the margin of victory possessed by our military forces must be attributed to advancements in science and technology Numerous studies show that up to 87 percent of GDP growth in this country comes from advances in just two closely related disciplines science and technology Yet only 5 percent of the workforce in America are scientists or engineers Norm Augustine Former CEO Lockheed Martin
8 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
8 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
In 2012-2013 public research universities employed over 11 million faculty and staff nationwide and were among the top five largest employers in twenty-four states National Center for Education Statistics IPEDS CareerOneStop ldquoState Profile Largest Employersrdquo httpwwwcateeronestoporg and Infogroup httpwwwinforgroupcom
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
10 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
11 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
12 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
13 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
14 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
15 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
17 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Communicate Importance
bull Talk specifics that people relate to and understand
bull Jobs ndash determine the number of jobs your universities provide in your cities and state
bull Resources for state and local governments for innovation
bull Services to state and local governments (teacher certification education and teacher training)
bull Provide student access to top quality research and professors at more affordable costs
bull Collaborate with small institutions for bigger projects
bull Arts and entertainment sports venues and research purchasing for the economy
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
18 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Examples of discoveries and products that have improved lives
bull The quantum-well laser technology behind modern fiber-optic communications and the first widely used global web browser were developed at the University of Illinois at Urbana-Champaign Each gave rise to a multi-billion dollar industry
bull Touch screens were developed at the University of Kentucky and multi-scrolling capabilities originated at the University of Delaware
bull The lithium-ion battery a critical component of smartphones and tablets which is used in Apple products was developed by faculty at the University of Texas at Austin
bull Life-saving safety devices including retractable locking seatbelts were created at the University of Minnesota
bull Texas AampM is participating in the construction of the Giant Magellan Telescope in the Chilean Andes Magellan will have six times the collecting area of the largest telescopes today
bull The CRISPR gene editing system was coinvented by research at University of California Berkley
bull Our social security system was developed using social science research conducted at the University of Wisconsin
From Public Research Universities Recommitting to Lincolnrsquos Vision ndash An Educational Compact for the 21st Century (American Academy of Arts amp Sciences 2016)
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
19 bracewelllawcom | Texas New York Washington DC Connecticut Seattle Dubai London
Ways to Assure Compliance
bull Importance of understanding and complying with government transparency requirements
bull Over two dozen federal agencies fund research with their own specific guidelines
bull Compliance processes need to be in place in case Inspector General audit is initiated
bull Advisable to have a strong team to provide guidance to universities facing government investigations
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
2016 Edelman Study Excerpts
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Key Insights
There is a
fraying belief
in the state of
higher
education in
the US
There is a
disconnect
between
academics and
the public in
the role of
universities
You must
demonstrate
real-world
impact both
personal and
societal
to change your
reputation
1 2 3
21
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
INSIGHT ONE
There is a fraying belief in the state of
US higher education
22
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
[CATEGORY NAME] [VALUE]
Wrong track 51
[CATEGORY NAME] [VALUE]
Wrong track 59
Source Edelman 2016 University Reputations and the Public
Q21 Do you feel that the higher education system in the US is heading in the right direction or off on the wrong track
Percent who feel the higher education system in the US is headed in the right direction vs off on the wrong track
THE STATE OF US H IGHER EDUCATION
6 in 10 outside of academia say higher education is on the wrong
track Even 1 in 2 academics agree
Academics General
Population
23
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
We asked
Which of the following statements
do you agree with most
1) The traditional role of the
university is critical to society
2) Society demands the
traditional role of the university
needs to evolve
OR
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
59
39 39 39 35
40 41
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree the traditional role of the university is critical to society (vs wanting to see it evolve)
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
As opposed to nearly 6
in 10 academics who
agree
THEY RESPONDED
Only 4 in 10 public citizens say
the universityrsquos traditional role is critical to society
25
20-point
disconnect
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
41
61 61 61 65
60 59
Academics GeneralPopulation
InformedPublic
Generation Z(16 - 24)
Generation Y(25 - 39)
Generation X(40 - 49)
Boomers(50 - 64)
Percent who agree that society demands the traditional role of the university needs to evolve
(vs the traditional role is critical)
20-point
disconnect
Source Edelman 2016 University Reputations and the Public
Q26 Which of the following statements do you agree with most 1) The traditional role of the university is critical to society 2) Society demands the traditional role of the university needs to evolve
THEY RESPONDED
6 in 10 say that the role of the university must evolve
26
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
INSIGHT TWO
There is a significant disconnect between
academics and the public in the role of
universities
27
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
We asked
Which of the following statements
do you agree with most
1) It is more important that
universities focus on
providing a well-rounded
education and student
experience 2) It is more important that
universities focus on providing
students with tools and
resources they need to succeed
in a specific career
OR
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
THEY RESPONDED
Academics want to provide a well-rounded educationhellip Percent who feel it is more important that universities focus on providing a well-rounded education and student experience (eg
strong academics moralsocial development exposure to new ideas personalized attention)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
71
44 47 43 45 46 44
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnect
29
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
THEY RESPONDED
hellip while the public wants tools and resources for a successful career
Percent who feel it is more important that universities focus on providing students with tools and resources they need to succeed in
a specific career (eg career-specific classes internships career services networking opportunities)
Source Edelman 2016 University Reputations and the Public
Q25 Which of the following statements do you agree with most 1) It is more important that universities focus on providing a well -rounded education and student experience (eg strong academics moral social development
exposure to new ideas personalized attention 2) It is more important that universities focus on providing students with tools and resources they need to succeed in a specific career (eg career-specific classes internships career
services networking opportunities)
29
56 53 57 55 54 56
Academics GeneralPopulation
InformedPublic
Generation Z Generation Y Generation X Boomers
27-point
disconnec
t
30
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
INSIGHT THREE
You must demonstrate real-world
impact both personal and societal
to change your reputation
31
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Teaching
bull Has high quality faculty and professors who are renowned in their field
bull Provides resources and relationships that allow students and faculty to achieve breakthroughs in their research
and areas of study
Training
bull Prepares students to be leaders post-graduation
bull Provides students with access to top job opportunities
Impact on Real World
bull Is future-focused and solves long-term challenges facing the world
bull Focuses research and innovation on creating things that are actually introduced to the market and work in the real
world
bull Promotes an interdisciplinary approach to problem solving that is relevant to how challenges are solved in the
real world
Prestige
bull Enrolls a high caliber class of motivated and high performing students
DRIVERS OF TOP UNIVERS ITY REPUTATIONS
Not Just Prestige and Academic Excellence
5 of 8 Top Drivers are Training and Impact
32
These attributes fell in the top right-hand quadrant and are considered to be the drivers of university reputation
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Drivers for other audiences can be found in the appendix
Drivers Expected
Source Edelman 2016 University Reputations and the Public
Q38 Thinking about what you now know about ltINSERT UNIVERSITYgt and what you knew before how well does each of the following statements describe ltINSERT UNIVERSITYgt If you are not familiar with ltINSERT
UNIVERSITY please use your best judgment Please use a scale of 1 ndash 10 where 1 means ldquoDoes not describe at allrdquo and 10 means ldquoDescribes completelyrdquo
DRIVERS OF TOP UNIVERS ITY REPUTATION
Real-world impact must have both personal amp societal benefits
33
Personal impact is
requiredtable stakes
Societal impact is a
key reputation driver
Impact
Faculty provide
personalized
attention
invested in
success of
students
Instills
students
with
courage
confidence
to achieve
personal
goals
Balanced
teaching
approach
Future-
focused
solves
long-term
challenge
s
Research
innovations
introduced in
the real world
Inter-
disciplinary
real-world
approach
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Mass Populatio
n
Parting Stat The Inversion of Influence
34
Authority
amp Influence
Influence
Authority
Source 2016 Edelman Trust Barometer Q11-14 Below is a list of institutions For each one please indicate how much you trust that institution to do what is
right using a nine-point scale where one means that you ldquodo not trust them at allrdquo and nine means that you ldquotrust them a great dealrdquo (Top 4 Box Trust)
Informed Public and Mass Population 28-country global total
85 of population
48 Trust Index
15 of population
60 Trust Index Informed
Public
Traditional Model Emerging Model
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Media Insights
Academicsrsquo media preferences shouldnrsquot
be the primary driver of externalpublic
communication strategy
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
MEDIA PREFERENCES
The public collects their news and information from different
sources than academics The publicrsquos top sources are
increasingly peer-influenced Percent who regularly use the following media sources for news and information
78 73 72
69
51 49
24 22 17
11 10 6
1
55
74
43
52
42
26
11
49
24
14 10
5 3
Online news TV Newspapers SearchEngines
Radio orRadio News
Magazines Governmentwebsites
SocialNetworks
ContentSharing Sites
Blogs CorporateComms
Corporate orProduct
Advertising
None of theabove
Academics General Population
Source Edelman 2015 University Reputations and the Public
Q40 Which of the following media sources do you use regularly for news and information
The public can more likely be found
on social networks content sharing
sites and blogs for their news and
information
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
ITrsquoS NOT JUST THE MONEY The Benefits of College Education
to Individuals and to Society
Lumina Issue Papers
Philip Trostel
University of Maine
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
The Curse of the College Earnings Premium
bull The substantial monetary payoff to college education has been demonstrated
countless times
bull Two unfortunate side effects
ndash Numerous other important benefits tend to get overlooked
ndash It fuels the perception that college education is primarily a private good (ie
primarily benefits the individuals earning degrees) and thus there is little need for
taxpayer support
bull Our actions are speaking Public support for higher education
ndash Falling relative to national income (since early 1980s)
ndash Falling relative to total government spending (since about 1980)
ndash Falling relative to net studentfamily contributions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$9668
$7555$12168
$32112
$26016
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Average Annual Earnings
$24010
$31565
$36178
$56122
$82139
$14342
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$205009
$152926$246396
$625483
$419467
$0
$200000
$400000
$600000
$800000
$1000000
$1200000
$1400000
$1600000
$1800000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Earnings(At Age 19 using a 3 Discount Rate)
$549010
$701936
$795406
$1174493
$1593959
$344001
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
ldquoIf you canrsquot measure it it doesnrsquot existrdquo
bull The ldquootherrdquo benefits are at least as important as the well-known effect on
earnings
ndash They are not just the gravy
ndash The typical college education picture is worth maybe 200 words
bull The report compiles evidence from several different literatures (and shows a
few new things too)
bull All data are recent typically 2012
bull The benefits from college attainment are emphasized not the benefits from
college education generally
ndash Colleges also create substantial benefits from research and public service activities
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Caveats
bull Numerous effects are separately summarized but they are unlikely to be
independent
ndash A simple summation risks double counting
ndash There is no attempt to calculate the total benefits
bull The report does not deal with issues of causation
ndash The correlations could be the result of omitted-variables bias (aka ldquoability biasrdquo in
this context)
ndash The literatures have found that instances of causal estimates being noticeably lower
than the observed correlations are uncommon
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Other Private Benefits
bull Some other private benefits of college attainment
ndash Greater fringe benefits from employment
ndash Reduced risk of unemployment
ndash Better health and reduced risks of disability and mortality
ndash Increased savvy in making consumption and financial decisions
ndash Reduced risk of imprisonment
ndash Better marriages
ndash Increased life satisfaction
ndash These benefits are partially passed on to their children
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
150
195
235252
347
392384
505
574
613
726
761
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Self-Reported Health
Excellent Excellent or Very Good
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
226
153
131
100
54
46
129
86
75
57
2722
96
56
43
32
16 120
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Disability
Any Disability Abulatory Difficulty Independent Living Difficulty
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Life Expectancy
bull Hummer and Lariscy (2011) found that the mortality rate is 25 lower for
bachelorrsquos degrees compared to high school
bull They also show that college attainment is inversely related to all broad
categories of mortality but particularly for the most preventable causes
ndash The strongest negative effects on mortality are for diabetes and lung cancer
followed by respiratory disease and external causes (homicide suicide and
accidents)
bull Meara et al (2008) estimated life expectancy at age 25 (in 2000) Life
expectancy for those with at least some college was 816 compared to 746 for
those who never attended college
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Compare to
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
External Benefits
bull College education also creates substantial benefits to the rest of society
bull Some external benefits of college attainment
ndash Probably the most important is knowledge creation and technological change
fostered by college education but this is not quantified
ndash ldquoProductivity externalitiesrdquo
ndash ldquoFiscal externalitiesrdquo
ndash ldquoPhilanthropic externalitiesrdquo
ndash ldquoCivic externalitiesrdquo (aka ldquosocial capitalrdquo)
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Productivity Spillovers
bull Education may not only increase the incomes of those being educated but also
increases the incomes of others
bull Regional data on income and college attainment suggest that productivity
spillovers are important
ndash The greater regional income associated with greater regional college attainment is
substantially more than can be explained by the greater incomes of graduates
bull Estimating the magnitude of productivity spillovers is challenging because
correlation is not causation But the best evidence indicates that it is
comparable in size to the college earnings premium
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Fiscal Externalities
bull Greater earnings associated with higher education create greater tax revenues
which benefit others by financing public services
bull The lower incidences of poverty unemployment disability etc reduce
spending on public assistance and social insurance which benefit others by
freeing government resources for other programs andor reducing taxes
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$1300$43868
$75206 $80629
$175234
$258045
$6065
$15380
$22709 $24564
$43248
$60070
$31760
$43108
$49552$55373
$62082
$72750
$24304
$34208
$38813$40775
$47947
$53025
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Taxes(At Age 19 using a 3 Discount Rate)
Federal Income Taxes State Income Taxes Property Taxes Sales Taxes
$443890
$328511
$201341$186280
$136564
$63429
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$51090
$33709
$24772 $22053
$11097$7638
$33430
$15430
$10059
$6626
$2116
$981
$0
$10000
$20000
$30000
$40000
$50000
$60000
$70000
$80000
$90000
$100000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Public Assistance(At Age 19 using a 3 Discount Rate)
Medicaid SNAP School Lunches Cash Assistance Energy Assistance Housing Subsidy
$9394
$14480
$31803
$38617
$54155
$95454
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$5804
$7928 $7303 $7140
$5319$4179
$13971
$7110
$3642$3043
$1421
$652
$1921
$2445
$2987
$1847
$1969
$2122
$969
$1656
$1594
$1069
$544
$553
$0
$5000
$10000
$15000
$20000
$25000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Lifetime Social Insurance(At Age 19 using a 3 Discount Rate)
Unemployment Insurance Supplemental Security Disability Workers Compensation
$7506
$9253
$13099
$15527
$19139
$22664
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
-$162819
$25938
$126980$172128
$381051
$547990
-$200000
-$100000
$0
$100000
$200000
$300000
$400000
$500000
$600000
Less than High SchoolDiploma
High School Some College Associates Degree Bachelors Degree Advanced Degree
Present Value of Net Lifetime Fiscal Impact(At Age 19 using a 3 Discount Rate)
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Fiscal Bottom Line
bull Trostel (2010) estimated the fiscal benefits relative to the cost (using 2005
data) ndash From taxpayersrsquo point of view each potential college degree is conservatively worth
$481000 ($556000 in various fiscal benefits minus the $75000 cost)
ndash Net government spending per college degree is negative
bull The reduction in spending after college is greater than public spending on college
education
ndash The real internal rate of return on taxpayer investment in college students is conservatively 103
ndash The real internal rate of return to state and local governments is 31 on average
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$163
$410
$759$840
$1665
$2682
$0
$500
$1000
$1500
$2000
$2500
$3000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Value of Volunteered Labor
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$3434
$5757
$7076
$1801
$19974
$31805
$66 $188 $332 $137
$1642
$4052
$0
$5000
$10000
$15000
$20000
$25000
$30000
$35000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Earnings Sacrificed for Not-for-Profit Employment
Earnings Differential Average Contribution
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$26 $49 $79 $94
$279
$682
$140
$334
$533$599
$981
$1512
$1
$2
$4
$8
$44
$161
$0
$500
$1000
$1500
$2000
$2500
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Annual Charitable Contributions
Charities Religious Organizations Educational Institutions
$167
$385
$616$701
$1304
$2355
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
$0
$1000
$2000
$3000
$4000
$5000
$6000
$7000
$8000
$9000
$10000
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Total Annual Philanthropic Contributions
Volunteered Labor Nonprofit Employment Cash Contributions
$1678
$395
$984
$1707
$4611
$9089
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
66
101
172187
263
341
1649
7486
100
137132145
196
222
274
317
09 31
5868
82
129
193
259
363
402
485
589
0
10
20
30
40
50
60
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Participation in Organizations
School or Community Assoc Service or Civic Org Religious Institution Other Org Any
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
36
60
88
99
129
173
27
56
91
108
147
202
0
5
10
15
20
25
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Community Involvement
Worked on a Community Project Attended a Community Meeting
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
618
658
689701
719 725
412
442459 468
478492
376
516
545
588
644
688
0
10
20
30
40
50
60
70
80
Less than High SchoolDiploma
High School Diploma Some College Associates Degree Bachelors Degree Advanced Degree
Interactions with Neighbors
Speak with Neighbors Exchange Favors with Neighbors Trust Neighbors
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Crime
bull Crime is essentially negative citizenship
bull Lochner and Moretti (2004) estimated the reduction in the dollar value of the
harm to crime victims
bull Extrapolating their estimates
ndash The PV of the lifetime bachelorrsquos degree premium in the victim costs of crime is
21 as large as the lifetime effect on earnings and 45 as large as the bachelorrsquos
degree fiscal externality
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Summary
bull It is not overstatement to call the typically emphasized effect on earnings just
the tip of the college-payoff iceberg
ndash There are more benefits to college education beneath the surface than above it
bull These are just the (imperfectly) measurable benefits of college education
ndash There are numerous important but difficult-to-quantify effects such as the positive
influences on innovation culture diversity and tolerance
Greater Earnings
Other
Benefits
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
ldquoA Mind is a Terrible Thing to Wasterdquo
bull In addition to its emotional appeal the slogan is rationally true even more than
UNCF realized
bull Compromising college access makes us all worse off
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Downloads
bull Report
ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf
bull Excel charts
ndash httpnetworkbepresscomexploreeducationeducation-
economicsfacet=subject_facet3A22Phil+trostel22
Questions
Questions