The Economic Value of WTAMU Main Report

Appendix 10: Social Externalities
Education has a predictable and positive effect on a diverse array of social
benefits. These, when quantified in dollar terms, represent significant social
savings that directly benefit society communities and citizens throughout the
region, including taxpayers. In this appendix we discuss the following three main
benefit categories: 1) improved health, 2) reductions in crime, and 3) reduced
demand for government-funded income assistance.
It is important to note that the data and estimates presented here should not
be viewed as exact, but rather as indicative of the positive impacts of education
on an individual’s quality of life. The process of quantifying these impacts
requires a number of assumptions to be made, creating a level of uncertainty
that should be borne in mind when reviewing the results.
Health
Statistics show a correlation between increased education and improved health.
The manifestations of this are found in five health-related variables: smoking,
alcohol dependence, obesity, depression, and drug abuse. There are other
health-related areas that link to educational attainment, but these are omitted
from the analysis until we can invoke adequate (and mutually exclusive) databases
and are able to fully develop the functional relationships between them.
SMOKING
Despite a marked decline over the last several decades in the percentage of U.S.
residents who smoke, a sizeable percentage of the U.S. population still smokes.
The negative health effects of smoking are well documented in the literature,
which identifies smoking as one of the most serious health issues in the U.S.
Figure A10.1 shows the prevalence of cigarette smoking among adults, 25 years
and over, based on data provided by the National Health Interview Survey. 54 The
data include adults who reported smoking more than 100 cigarettes during
their lifetime and who, at the time of interview, reported smoking every day or
some days. As indicated, the percent of who smoke begins to decline beyond
the level of high school education.
FIGURE A10.1: PREVALENCE OF
SMOKING AMONG U.S. ADULTS BY
EDUCATION LEVEL
25%
100+91+79+67+32+19
20%
15%
10%
5%
0%
Less than high school
High school diploma/GED
Some college, no degree
Associate degree
Bachelor’s degree
Graduate degree
54 Centers for Disease Control and Prevention. “Table. Characteristics of current adult cigarette smokers,” National
Health Interview Survey, United States, 2016.
Source: Centers for Disease Control and Prevention.
Appendix 10: Social Externalities
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