The Economic Value of Main Report

Figure A6.1: Lifecycle change in earnings

12 years of education

14 years of education

Earnings

16 years of education

Age

In calculating the alumni impact in Chapter 3, we use the slope of the curve in Mincer ’s earnings function to condition the $108 value per CHE to the students’ age and work experience . To the students just starting their career during the analysis year, we apply a lower value per CHE; to the students in the latter half or approaching the end of their careers we apply a higher value per CHE. The original $108 value per CHE applies only to the CHE production of students precisely at the midpoint of their careers during the analysis year. In Chapter 4 we again apply the Mincer function, this time to project the benefits stream of the FY 2022-23 student population into the future. Here too the value per CHE is lower for students at the start of their career and higher near the end of it, in accordance with the scalars derived from the slope of the Mincer curve illustrated in Figure A6.1.

The economic value of Monroe Community College

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