Drive Growth: Education

Drive Growth: Education Better Education Improves General Labor Quality and Enables Specialization For More Efficiency KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 377 Education = High Long-Term ROI* Investment Each $1 of Government Spending Could Generate Up to $3 of Incremental Tax Return USA Inc. Net Present Value (NPV) for an Individual** Obtaining Secondary / Higher Education, 2005 NPV = $100,119 wy 81M0,000 ROI=299% £ & $120,000 -------------------------------------| 0 - - ----- = Unemployment Effect 2 o) w § $100,000 ------------------------------------- Em ~~ > ~~ > 5 2 3% 23 $0000 ------- NPV =$32,257 -—=s—as—s“( sid 1 Social Insurance Tax zs , L Revenues £u ROI = 109% ec. © 2 $60,000 $<, (|)! —— £2 ox = Income Tax Revenues 25 $4000 es = %-___ > 2 _ S52 $2000 (i |} 3 8 = Public Foregone Tax a5 $0 Revenues @ a o = $20,000 [i --------- —_ = = Public Direct Cost a BADGE) m2 mex - me me ws en = in in eT me om ne a = Secondary Education Higher Education Note: * ROI (return on investment) caiculated as NPV of future incremental tax revenues divided by cost for government to support an individual for education. **Limited to male samples, female samples tend to have a KP lower public NPV. Source: OECD. (@E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 378 HOUSE_OVERSIGHT_021030