Education and the common good: Social benefits of higher education in Kentucky

The slogan “Education Pays” resonates with many since the monetary rewards associated with higher levels of education are generally well known. What is perhaps less well known, but no less important, are the rewards that accrue to all of society as educational attainment rises. These rewards are known as the “social benefits of education.”; Over the past twenty years Kentuckians have lagged the rest of the nation in educational attainment at the bachelor's degree level or higher. Policymakers in Kentucky have recently passed legislation in an effort to close this gap. This study provides evidence of the social benefits they can expect in return to their increased commitment to higher education.; Using individual-level data on the Kentucky population over the years 1995–2000, this study analyzes the relationship between 22 different social benefits and education, with a focus on the benefits of postsecondary education at the baccalaureate level. Probit, Heckman, ordinary least squares and two-stage least squares regression techniques were used to model the relationship between the social benefits included in the study and education. Ten model specifications for each social benefit demonstrated the robustness of the relationships. In addition, three years of data were used for selected benefits to analyze the stability of the relationships over time.; The empirical results suggest that persons with a degree from a four-year institution or higher are more likely to be civic-minded, to be healthier and choose healthier lifestyles. They are also less likely to be a burden on the criminal justice system or to depend upon public welfare programs. Children of more educated parents will be better prepared upon entering school, as the likelihood of being read to every day will be greater. Entrepreneurism and cultural activity are also likely to increase as education increases beyond the secondary level. Tax revenues are also more likely to rise, thereby enhancing the capacity of the public sector to serve the interest of the public good. As the state pursues policies that encourage participation in postsecondary education at all levels, all Kentuckians can expect to reap the benefits of improved lives associated with a more educated populace.