A positive relationship exists between educational attainment and earnings, which has been well established in the literature through multiple studies. This, in turn, influences the revenues generated for the state of Kentucky through the personal income tax. We predict even the modest change of increasing Associate’s and Bachelor’s degree holders by 1% would increase revenue by $37 million. Kentucky loses between $300 million and $500 million in state tax revenues every year because our educational attainment is lower than the national average.

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This research was funded by the Council on Postsecondary Education (CPE) to study the relationship between education and outcomes such as income, employment levels, health, public assistance use, and crime.