--or the public value of public universities in the national dialog · source: edelman 2016...

67
Preaching Beyond the Choir: Communicating the Vast and Complex Value of Public Research Universities Succinctly and Effectively --ORThe Public Value of Public Universities In the National Dialog Teri Lucie Thompson, Kay Bailey Hutchison, Philip Trostel, and Julia Weede

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Page 1: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 2: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 3: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 4: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 5: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 6: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 7: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 8: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 9: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 10: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 11: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 12: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 13: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 14: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 15: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 16: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 17: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 18: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 19: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 20: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 21: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 22: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

[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

Page 23: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 24: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 25: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 26: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 27: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 28: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 29: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 30: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 31: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 32: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 33: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 34: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 35: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 36: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 37: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 38: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 39: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 40: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 41: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 42: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 43: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 44: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 45: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 46: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 47: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 48: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 49: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 50: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 51: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 52: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 53: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

-$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

Page 54: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 55: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 56: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 57: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 58: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

$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

Page 59: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 60: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 61: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 62: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 63: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 64: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

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

Page 65: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

Downloads

bull Report

ndash httpswwwluminafoundationorgfilesresourcesits-not-just-the-moneypdf

bull Excel charts

ndash httpnetworkbepresscomexploreeducationeducation-

economicsfacet=subject_facet3A22Phil+trostel22

Questions

Page 66: --OR The Public Value of Public Universities In the National Dialog · Source: Edelman 2016 University Reputations and the Public Q38: Thinking about what you now know about

Questions