The Private, Regional, and State Economic Impacts of Kentucky Technical and Community Colleges

In the first part of this study we will examine the economic value, in terms of future earnings, of receiving an Associate's Degree or a certificate, relative to receiving a high school degree. Students incur a cost when obtaining an Associate's Degree or a certificate in terms of time, lost earnings and education-related costs. The returns to obtaining the degree, however, will continue to be accrued over the entire working life of the individual. As part of this part of the project we will also examine changes in the number of graduates and the earnings of graduates ofKCTCS since the implementation ofHBl. Next we will examine the overall benefits of the KCTCS system to both a local area and to the Commonwealth. We will estimate these benefits using a technique that has been previously used to estimate the value of clean water and air, and other amenities not fully priced by the market, but has never been used to estimate the value of institutions of higher learning. This method will capture both the more limited economic impact of the institution, as well as the additional benefits produced by a more-educated population such as higher wages for other workers, better health, less crime, better citizens, and a larger tax base. Because of this our estimates will produce a much more accurate and more complete estimate of the value of the KCTCS system to the citizens of Kentucky.