Thursday, May 16, 2013

Undocumented Students Value to the MN Economy - $1 billion

It has been reported in the media that fewer than 500 undocumented students would take advantage of the in-state tuition waiver for these students.

Here is a quick estimate of the value of 250 students with an Associate degree and 250 students with a Bachelor's degree using the Census estimate of the lifetime value of a degree:

I estimate that these 500 students will bring $1billion in new earnings to the Minnesota economy over their lifetime. ($1.8 million is the lifetime earnings of a Associate's degree; $2.4 million for a Bachelor's degree)

If we assume they pay the average 11.5 percent tax as the "average citizen" of the MN Tax Incidence Study, then the state can look at a lifetime tax revenue of $121 million.

Legislators - please note. 

 

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