according to a report from the u.s. census bureau, the
according to a report from the u.s. census bureau, "the average [lifetime] earnings of a full-time, year round worker with a high school education are about $1.2 million compared with $2.1 million for a college graduate." this indicates that there is a considerable benefit to a graduate from investing in his or her own education. tuition at most state universities covers only about two-thirds to three-quarters of the cost, so the state applies a pigouvian subsidy to college education. if a pigouvian subsidy is appropriate, is the externality created by a college education a positive or a negative externality? what does this imply about the differences between the costs and benefits to students compared to social costs and benefits? what are some reasons for the differences?
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