ERIC Number: ED231042
Record Type: RIE
Publication Date: 1982-Mar
Reference Count: 0
An Economic Analysis of the Effects of Dropouts and State Tax Revenues.
Saterfiel, Thomas H.; Blackbourn, Richard
An analysis of the 1981 high school graduating class in Mississippi suggests that greater earnings for students and increased state revenues from income and sales taxes would result if the dropout rate could be reduced to the national average of 10 percent. Subtracting from the total first-grade enrollment (1969-70) both the number of 1981 private school graduates and the number of students not accounted for yields a figure of 45,813 potential graduates. Of this 1981 class, however, 17,730 (38.7 percent) dropped out during the 12 years from 1969 to 1981. Earning figures based on Mississippi census data show that at a 10 percent dropout level the 1981 class would have generated over $90 million more in annual earnings than were earned at the 38.7 percent level. This increase makes the $907,200 cost for implementing a compulsory attendance program in Mississippi a sound investment. Eight tables provide statistics on Mississippi dropouts, enrollments, earnings productivity, and income tax revenues. (PB)
Publication Type: Speeches/Meeting Papers; Reports - Research; Numerical/Quantitative Data
Education Level: N/A
Authoring Institution: N/A
Identifiers: Income Taxes; Lifetime Income; Mississippi; Sales Taxes; State Taxes
Note: Paper presented at the Annual Meeting of the American Educational Research Association (Montreal, Quebec, Canada, April 11-15, 1983).