The Cost of Economic and Racial Injustice in Postsecondary Education

In partnership with the Postsecondary Value Commission, CEW conducted a thought experiment on the costs of inequality in the U.S. education system. The simulation found that the U.S. economy misses out on $956 billion dollars per year, along with numerous nonmonetary benefits, as a result of postsecondary attainment gaps by economic status and race/ethnicity. The Cost of Economic and Racial Injustice in Postsecondary Education finds that closing these gaps would require an initial public investment of at least $3.97 trillion, but the benefits would outweigh the costs over time. Equalizing educational attainment without increasing student debt for low-income adults could also boost GDP by a total of $764 billion annually.