Public Rates Of Return On Higher Education Investments, By State

Abstract

Public rates of return on higher education expenditures are calculated by state. Benefits accruing to states from their investments in higher education are measured by differential tax revenues collected from college-educated citizens versus high-school-educated citizens. For most states we find an adequate rate of return on such investments. However, we conclude that in addition to monetary returns, state governments likely consider other factors when deciding upon expending resources for higher education needs.