Changing Minds at the Heart of Education’s Benefits
Debra Anderson and Marianne Hill
In Mississippi, only 60% of students finish high school, a significantly lower percentage than the already low 71% for
the nation as a whole. In addition, Mississippi 4th and 8th graders achieve at levels below the national average on
nationally mandated math and reading exams (in each ethnic group). The percentage of the population with a college
degree is also lower. 1 Low educational achievement adversely impacts the state in many ways, including its economic
development.
T
he essence of economic development
is the creative and effective use of
knowledge. Economic development
involves new ways of doing even the most
basic of tasks, from communicating to
traveling. Education goes hand-in-hand with
economic growth -- it provides people with
the skills they need to analyze problems and
make decisions on the job, in the home and in
the community. The kind of education
individuals receive impacts the decisionmaking processes of families, organizations,
businesses, and the public sector.
The benefits of formal education for
individuals and for communities are examined
below. Most of the findings are from U.S.
studies; results differ by country, due in part
to the differing content of education and to
the differing institutions within which
individuals work and live. In all cases,
however, the return to education is high and
positive.
2000). Education helps each student realize
his or her potential. It “stimulates the spirit of
inquiry, the acquisition of knowledge and
understanding, and the thoughtful
formulation of worthy goals” (National
Education Association 2002). Each level of
education completed by an individual can
enhance that person’s abilities, which in turn
will raise the overall capacity of society to
provide a higher quality of life for its
members. Some of the basic benefits of
education are summarized below.
More education means better jobs and
higher incomes for individuals.
The wage that an individual can expect to
earn increases with the years of education he
or she completes. High school graduates earn
more than dropouts, and college graduates
earn substantially more than high school
graduates. According to U.S. Census figures,
a college graduate in 1998 earned on average
about $20,000 more annually than a high
school graduate, while high school graduates
earned about $8,000 more than dropouts.
Regions with a more highly-educated
population also enjoy higher per capita
incomes.
More education brings greater rewards.
The average earnings of a full-time employee
with a doctoral degree was $89,400 in the late
1990s. This was about $37,200 more than a
typical college graduate and a larger gap than
the $21, 000 premium college graduates
earned over a high school graduates. Trends
suggest that in the future, advanced degrees
Overview: education has monetary and
non-monetary benefits.
Education is an investment
with high monetary and nonmonetary returns for both
individuals and communities. For individuals,
education is a means to a wealthier, healthier
and fuller life. For states and communities,
education is “a powerful instrument … for
improving well-being, and lays the basis for
sustained economic growth. (It is) essential
for building societies and dynamic, globally
competitive economies” (United Nations
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will bring larger premiums over college
degrees, while professionals (i.e. doctors,
dentists, lawyers) will earn even more than
persons with PhDs.
Today’s young people may
need an advanced degree in
order to get ahead in the
business world -- a bachelor’s degree has
become a mere ticket of admission to the
working world for many corporations. Jobs
requiring only a high school degree will
become more scarce. These jobs will grow by
just 9% by the year 2008, while those
requiring a bachelor’s degree will grow by
25%, according to one estimate (Alliance for
Excellent Education, 2003e).
Unemployment is lower among those with
more education as well. Today, only 40% of
adults who dropped out of high school are
employed, compared to 60% of adults who
completed high school and 80% of those with
a bachelor’s degree (Alliance for Excellent
Education 2003c).
Literacy brings broad economic benefits in
addition, boosting productivity. If literacy
levels in the U.S. were the same as those in
Sweden, the gross domestic product here
would increase by approximately $463 billion
(Alliance for Excellent Education 2003e).
Higher incomes also mean higher tax
revenues. The National Dropout Prevention
Center cites a study estimating that each year’s
class of dropouts costs the country over $200
billion in lost earnings and unrealized tax
revenue. The Center also cites a 2003 study
showing that if minority students participated
in college at the same rate as white students,
the government would gain at least $80 billion
in new tax revenues.2
evaluate information for credibility and
quality, analyze risks, costs and benefits. They
must be able to interpret test results, calculate
dosages, and locate health information.
Consumers need functional literacy and
interactive literacy to make appropriate
decisions. The estimated price tag for
Americans not understanding health issues is
more than $70 billion, according to a Brown
University study.4 Literacy links health and
education, and illiteracy is a contributing
factor to the wide disparities in health status.
In a study estimating health literacy,
“among adults who had not completed high
school, about 22% performed below Level 1
(the lowest level)…., while 26% were in Level
1 and 33% in Level 2. Almost half (48%) did
not score above Level 1 and slightly more that
80% did not exceed level 2.”5 In contrast, only
14% of those who had completed high school
and 4% of those who attended school beyond
high school were found to be at or below
Level 1.
More education means more planning for
the future, including family planning.
Families with fewer children are better able
to invest in their children’s health care,
nutrition, education and other needs. On the
other hand, unplanned children or a large
number of children can impose a heavy
burden, particularly on the poor,
while smaller families have higher
upward economic mobility.6 Data
show that 60% of all babies born in
the U.S. are unintended, and that
for the teen population, the percentage
increases to 85%.7 Unplanned children involve
costs for both families and society.
Taxpayers in the U.S. spend over $30
billion annually on costs associated with the
care of children born to young, low-income
mothers. Many of these children were
unplanned.
In 1992, these expenditures
included $14 billion for health care, $14
billion in public assistance, and almost $6
billion on food stamps. The cost of these
More education means better
decisions related to health and
health care.
Health literacy has been defined as
the “capacity to obtain, interpret, understand
and use information to promote and maintain
health.”3 Consumers must be able to read and
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programs in Mississippi was over $100 million
in 1994 and 1995, although most of these
funds came from federal dollars.7
Young women who choose to complete
more years of education typically postpone
child-bearing, so that more education is
associated with declining birth rates. For
women under 30 years of age, birth rates are
highest among women with less education,
and, overall, women with 0 to 8 years of
education had the highest birth rates and the
greatest number of children over their
lifetimes, according to a 1997 study by the
Center for Disease Control.8 This study found
that among unmarried mothers the birth rate
drops with the number of years of education
the mother has.
Levels of achievement also matter. Male
and female students with low academic
achievement are twice as likely to become
parents by their senior year of high school as
students with high academic achievement
(Alliance for Excellent Education, 2003b).
Another benefit of more education is
reduced infant mortality. “Five years of
education for mothers reduces the rate of
child mortality by ten deaths per thousand
births”, reports a UN study.8 The infant
mortality rate in the U.S. reached a record low
of 6.8 deaths per 1,000 live births in 2001, but
remains higher than in many other
industrialized countries.
University study estimated $1.3 million as the
potential benefits in saving a high-risk youth
from becoming a typical career criminal.11
The Alliance for Excellent Education
(2003a) has compiled the results of several
studies
showing
that
arrests
and
imprisonment are associated with a lack of
education:
C
C
C
C
C
C
C
More education means less interest in
criminal activity.
Education reduces crime,
according
to
numerous
studies, and investing in
education would save millions of dollars in
crime-related
expenditures
annually.
According to Lochner and Moretti (2001), “A
one percent increase in high school
graduation rates would save approximately
$1.4 billion in costs associated with
incarceration, or about $2,100 for each male
high school graduate.”10 A Vanderbilt
Approximately 75% of state prison
inmates did not complete high school.
High school dropouts are 3.5 times
more likely than high school graduates
to be arrested in their lifetimes.
About 47% of drug offenders in
prison do not have a high school
diploma or a GED.
A male high school graduate with a D
average is fourteen times more likely
to become incarcerated than a
graduate with an A average.
A one-year increase in average
education levels would reduce arrest
rates by 11%.
About 23% of the difference in
incarceration rates between blacks and
whites would be eliminated by raising
the average education levels of blacks
to the same level as that of whites.
Nineteen percent of adult inmates are
illiterate. Up to 60% are considered to
be functionally illiterate. By comparison, our national adult illiteracy
rate is 4%, with up to 23%
functionally illiterate. (“Functionally
illiterate” is a term used to describe
persons who have the ability to read
and write, but at such a rudimentary
level that they are unable to perform
tasks that require reading or writing
simple instructions.)
A survey of police chiefs conducted by
George Mason University found that three to
ten times more chiefs gave high-quality, early
education and care the highest rating for
effectiveness as a crime prevention and
28
ownership much more slowly than those with
more education, and the less educated also lag
behind in home ownership over the course of
their lifetime. In addition, there is a growing
gap in the levels of home ownership between
the most and least educated households.14
Succeeding generations of the least educated
are falling further behind in home ownership,
especially when compared to succeeding
generations of high school graduates.
Home ownership has been shown to
lead to 13 to 23% higher quality home
environment, which resulted in children or
home- owners achieving math scores up to
nine percent higher, reading scores up to
seven percent higher, and reductions in
children’s behavior problems up to three
percent.15
For blacks, the value of education for
home ownership is more significant than it is
for whites. Blacks without a high school
diploma showed much lower levels of home
ownership than whites without a high school
diploma. Furthermore, college graduation -and even some college -- had a more
profound impact on home ownership
attainment for blacks. Black college graduates
have much higher levels of home ownership
attainment (20 % higher) than black high
school graduates. By comparison, a college
degree for whites only raises home ownership
rates 5 percentage points above whites with a
high school diploma.
Home ownership
differs by family structure and race, but in all
categories, education is a factor.
reduction tool in comparison to other
strategies.
Education also impacts recidivism.
Recidivism rates are high in the United States,
ranging from 41% to 71%. According to the
National Institute for Justice Report to the U.S.
Congress, prison education is more effective at
reducing recidivism than boot camps, shock
incarceration, or vocational training.
A study conducted in 1997 for the United
States Department of Education entitled,
“The Three State Recidivism Study,” focused
on over 3600 individuals released more than
three years earlier in Maryland, Minnesota and
Ohio. Using education participation as the
major variable, the study shows that “simply
attending school behind bars reduced the
likelihood of re-incarceration by
29%. This translated into savings.
Every dollar spent on education returned
more than two dollars to the citizens in
reduced prison costs.”12
For juveniles involved in quality reading
instruction programs while in prison,
recidivism was reduced by 20% or more
(Alliance for Excellent Education 2003a).
In 2001, states spent $29.5 billion for adult
prisons.
Day-to-day operating expenses
totaled $28.4 billion and capital outlays for
land, new buildings and renovations was
estimated at $1.0 billion. Annual operating
costs per state inmate was $22,650 or $62.05
per day.13 Over two million individuals in the
United States are incarcerated , either in
prisons (1.5 million) or in jails (0.6 million). In
Mississippi, the composite average annual cost
per inmate was $14,105 or $45.91 per day.
Other costs associated with incarceration
include police, courts prosecutors, jail,
juvenile detention, community supervision
and rehabilitation.
More education means increased citizen
participation and higher voting rates.
While
the
social
characteristics of individuals
and their own political
attitudes are key determinants
of political participation,
formal education and income are critical
determinants. Education increases the ability
to seek information regarding where to vote,
More education and higher
incomes mean increased
home ownership.
Heads of households with
less education historically move into home
29
how to vote, campaign issues and who the
candidates are.16 It expands the capacity to
deal with the abstract, intangible subjects that
are a part of politics. Citizens who are more
educated likely to vote than those who are less
educated. High school graduates are more
likely than dropouts to be registered to vote,
follow campaigns via television and printed
material, attend public meetings, and
volunteer in campaigns.
Increased levels of education and literacy
provide exposure to people, environments
and practices that create interest in politics,
thereby encouraging voting.17 Higher levels
of education also advance opportunities for
social net-working that promotes citizen
participation through providing access to
political
leaders,
organizations,
and
information.
Conclusion
Education has the power to influence the
pace of economic progress and alter behavior.
It has the power to influence life choices,
shaping attitudes and impacting behavior.
From employment opportunities to income
levels; from health status to family size,
education impacts all areas of a person’s life.
It also impacts organizations and social
institutions, from businesses to political
bodies. Improving the quality of education
and the levels of education that individuals
achieve may pose difficult challenges, but
such efforts bring proven benefits of great
significance to both individuals and society.
Health in America,” Center for Global
Assessment, Policy Information Center, April
2004. This report explains that researchers at
the Educational Testing Service, using health
data from the National Adult Literacy Survey
(NALS) and the International Adult literacy
Survey (IALS), created a Health Activities
Literacy Scale (HALS) for the U.S.
Department of Education. The HALS is a 0
to 500 scale that reflects a progression of
health-related literacy skills from low (Level 1)
to high (Level 5). The average health literacy
score on the HALS of adults who had not
completed high school or earned a GED at
the time of the survey was 220; far lower than
a score of 271 for individuals who graduated
from high school or earned a GED. The
average score for those who continued their
education beyond high school was 306.
6
See UNFPA, State of the World Population,
2004,
“Population
and
Poverty”.
www.unfpa.org.
7
Mississippi State Department of Health,
Selected Facts About Teenage Pregnancy Mississippi,
1994 and 1995.
8
J. Matthews and Stephanie J. Ventura, “Birth
and Fertility Rates by Educational Attainment:
United States, 1994”.
Division of vital
Statistics, Monthly Vital Statistics Report, April
24, 1997. At www.cdc.gov.
9
See, UNESCO,
Education for Sustainable
Development, “Overall Impact of Education on
Population
Dynamics,”
2001.
www.UNESCO.org.
10
Lochner
and
Moretti,
2001.
At
www.icpr.org/wpfiles/lochner_moretti.pdf
11
Mark A. Cohen, “Costs of Crime” in
Encyclopedia of Crime and Punishment, David
Levinson, (Thousand Oaks, CA: Sage), 2002.
Also, more information is available here:
www.coloradoboysranch.org/cbv/performrpt
.hmtl
12
Daniel Karpowitz and Max Kenner, Bard
Prison Initiative, “Education as Crime
Prevention: The Case for Reinstating Pell
Grant Eligibility for the Incarcerated.” 2002.
13
James J. Stephan, Bureau of Justice Statistics,
Notes
1,2
National Dropout Prevention Center,
“Quick Facts”. Found at the following site:
www.dropoutprevention.org/stats/stats.htm.
3
Sandra Kerka, “Health Literacy Beyond Basic
Skills.” ERIC Digest (ED478948), 2003.
4
Christina Zarcadoolas, “Environmental and
Health Literacy Initiative (overview)” Center
for Environmental Studies, Brown University,
2004.
5
See Policy Information Report, “Literacy and
30
State Prison Expenditures 2001.
U.S.
Department of Justice.
14
George S. Manmick and Zhu Xiao Di, Joint
Center for Housing Studies, Harvard
University “Cohort Insights into the Influence of
Education, Race and Family Structure on Home
Ownership Trends by age: 1985-1995,” 2000.
Recent studies suggest that the positive effect
of college on home ownership might be
weakening. Rising costs of today’s college
education might be reducing the ability of
young college graduates to afford a down
payment on a home or quality for a mortgage,
however.
15
Donald Haurin, Toby Parcel, R. Jean
Haurin, Joint Center for Housing Studies of
Harvard University, “The Impact of Home
Ownership on Child Outcomes,” 2001.
16
Katherine Tate and Kim Defronzo, “Unequal
Participation in American Politics and Its
Implications for Children and Family Policies.”
2000,p.4.
17
William J. Carbonaro, “Education and Voting:
The Importance of Literacy, Literacy Practices, and
Social Networks.” 1999, p. 2.
Sources
Alliance for Excellent Education, Fact Sheets.
2003a “Impact of Education on: Crime”.
2003b “On Health”. 2003c “On Personal
Income and Employment”, 2003d “On
Poverty”, 2003e “On the Economy”. See
www.all4ed.org/publications.
Lochner, L. and E. Moretti, “The Effect of
Education on Crime”, Joint Center for
Poverty Research, December 2001. Available
at
the
following
website:
www.jcpr.org/wpfiles/lochner_moretti.pdf
1,2
National Dropout Prevention Center,
“Quick
Facts”.
At
www.dropoutprevention.org/stats/stats.htm.
National Education Association, Code of Ethics
2002, www.nea.org.
United Nations, Millennium Development Goals,
2000.
U.S. Bureau of the Census
Wolfinger and Rosentone, WhoVotes? , 1980.
31