The Economic Value of Main Report

to the education ladder depending on the students’ education level and the average number of CHEs they completed during the year. For example, bachelor’s degree graduates are allocated to the stage between the associate degree and the bachelor’s degree, and the average number of CHEs they completed informs the shape of the distribution curve used to spread out their total CHE production within that stage of the progression. The sum product of the CHEs earned at each step within the education ladder and their corresponding value yields the students’ aggregate annual increase in income ( ∆ E) , as shown in the following equation:

n

 = i 1

 = E

i i h e

where i є 1, 2,… ,n

and n is the number of steps in the education ladder, e i is the marginal earnings gain at step i, and h i is the number of CHEs completed at step i . Table A6.1 displays the result for the students’ aggregate annual increase in income ( ∆ E) , a total of $30.1 million. By dividing this value by the students’ total production of 277,981 CHEs during the analysis year, we derive an overall value of $108 per CHE.

Table A6.1: Aggregate annual increase in income of students and value per CHE

Aggregate annual increase in income

$30,052,173

Total credit hour equivalents (CHEs) in FY 2022-23

277,981

Value per CHE

$108

Source: Lightcast Impact model

The economic value of Monroe Community College

97