The Benefits to Taxpayers from Increases in Students - RAND ...

78 The Benefits to Taxpayers from Increases in Students’ Educational Attainment
Table 7.3
Benefits to Taxpayers from Increasing Educational Attainment from High School Graduate
to Some College, U.S.-Born Men and Women (2002 $, thousands)
Increased
Tax Payments
Reduced
Social Program
Spending
Reduced
Incarceration
Spending
Total Benefit
Estimated
Net Benefit
25 Percent
Reduction
Whites
Men 36 9 9 54 39 26
Women 40 12 1 52 37 24
Asians
Men 34 13 15 63 47 33
Women 41 14 0 55 40 26
Blacks
Men 27 14 46 87 68 51
Women 30 22 3 55 40 27
Hispanics
Men 31 10 25 66 50 36
Women 35 15 2 52 37 24
SOURCE: Appendixes B, C, and D.
tive to our estimates of the effects of the increase in education on public revenues and
costs. Table 7.3 shows that the net benefit of increasing a person’s education from high
school graduate to some college would be 15 to 40 percent smaller than our estimate if
the effect of the increase in education on public revenues and costs were 25 percent less
than our estimates. Even if our estimates of the effects of the increase in education on
public revenues and costs were 25 percent too high, taxpayers would realize net benefits
from an increase in education level from high school graduate to some college of
at least $24,000 (U.S.-born white or Hispanic woman) and as much as $51,000 (U.S.-
born black man).
Table 7.4 shows the benefits to taxpayers of increasing education from some college
to college graduate. Increases in a man’s education from some college to college graduate
generally yield slightly greater benefits to taxpayers than do comparable increases
in a woman’s education. The benefits to increased education do not differ much across
racial/ethnic groups.
Table 7.4 also shows that, if the effect of the increase in education on public revenues
and costs were 25 percent less than our estimates, the net benefit to increasing a
person’s education level from some college to college graduate would be 28 to 38 percent
smaller. Even if our estimates of the effects of the increase in education level on
public revenues and costs were 25 percent too high, taxpayers would realize net benefits