According to studies on the effects of education and life longevity, the average American female college graduate will live an additional 5.3 years longer than a female high school graduate. The average American college graduate will live an additional 4.8 years longer than a male high school graduate.

Moreover, economists can calculate the value of one year of life using a model that represents the average utility that person would attain during one year of life. This is referred to as the value of statistical life (VSL).

According to recent studies, the value of 1 statistical life year is approximately $100,000 in the USA (it varies by country).

If on average, a college graduate lived 5 years longer than their high school graduate, this would represent an implicit benefit of:

Question

According to studies on the effects of education and life longevity, the average American female college graduate will live an additional  5.3 years longer than a female high school graduate. The average American college graduate will live an additional 4.8 years longer than a male high school graduate.

Moreover, economists can calculate the value of one year of life using a model that represents the average utility that person would attain during one year of life. This is referred to as the value of statistical life (VSL).

According to recent studies, the value of 1 statistical life year is approximately $100,000 in the USA (it varies by country).

If on average, a college graduate lived 5 years longer than their high school graduate, this would represent an implicit benefit of:

BlackTom AI · Accepted Answer

The question describes that the value of a statistical life year (VSL) is about $100,000 in the USA, and that a college graduate lives on average 5 years longer than a high school graduate.
To estimate the implicit benefit of these additional years, multiply the number of extra life years by the value assigned to one year of life: 5 years × $100,000 per year = $500,000.
This calculation reflects the idea that the extra longevity provides roughly five statistically valued life-years, each worth about $100,000, summing to $500,000.
Note that this is an average, aggregate estimate and relies on the assumption that the VSL figure is applicable to the population in question and that the 5-year difference represents the average gain in life expectancy attributable to education level. It does not account for distributional effects, discounting, or variations in VSL by individual factors such as age, health, or income beyond the cited average.
In short, the implicit benefit derived from a 5-year extension in life expectancy at a $100,000 per life-year valuation equals approximately $500,000.

ECON&201 15109 Applied Economics: The True Cost of a College Degree

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