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Thursday, 1st March 2007

Hidden Benefits: The Impact of High School Graduation on Household Wealth

Hidden Benefits: The Impact of High School Graduation on Household Wealth (PDF; 71 KB)
Source: Alliance for Excellent Education
From press release:

If high school dropouts who currently head households in the U.S. had instead earned diplomas, the U.S. economy would benefit from an additional $74 billion in wealth accumulated by families, according to conservative calculations by the Alliance for Excellent Education in its new brief, Hidden Benefits: The Impact of High School Graduation on Household Wealth, funded by MetLife Foundation.

There is a wealth gap between high school dropouts and high school graduates that is even more severe than the better known income gap. Graduating all students, therefore, would increase family wealth (defined as investments that appreciate over time, commonly known as "assets"). This would have provided the approximately 16.5 million families currently headed by high school dropouts with a safety net for times of financial stress and with the increased capacity to invest in higher education, homes, and business enterprises. The nation also would have benefited through greater neighborhood stability, increased civic involvement and voting participation, and reduced need for public assistance.


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