Analysis of the Return on Investment and Economic Impact of Education

Drug abuse The burden and cost of illicit drug abuse is enormous in our society, but little is known about potential costs and effects at a population level. What is known is that the rate of people abusing drugs is inversely proportional to their education level. The higher the education level, the less likely a person is to abuse or depend on illicit drugs. The probability that a person with less than a high school diploma will abuse drugs is 2.9%, nearly six times greater than the probability of drug abuse for college graduates (0.5%). This relationship is presented in Figure A9.5 based on data supplied by SAMHSA. 51 Health costs associated with illegal drug use are also available from SAMSHA, with costs to state and local government representing 48% of the total cost related to illegal drug use. 52 42+22+24+7 46+32+31+7 51 Substance Abuse and Mental Health Services Administration, National Survey on Drug Use and Health, 2010 and 2011. 52 Substance Abuse and Mental Health Services Administration. “Table A.2. Spending by Payer: Levels and Percent Distribution for Mental Health and Substance Abuse (MHSA), Mental Health (MH), Substance Abuse (SA), Alcohol Abuse (AA), Drug Abuse (DA), and All-Health, 2005” in National Expenditures for Mental Health Services & Substance Abuse Treatment, 1986–2005. DHHS Publication No. (SMA) 10-4612. Rockville, MD: Center for Mental Health Services and Center for Substance Abuse Treatment, Substance Abuse and Mental Health Services Administration, 2010. FIGURE A9.5: Prevalence of illicit drug dependence or abuse by education level Less than high school High school graduate Some college or technical school College graduate 3.5% 3.0% 2.5% 2.0% 0.0% 1.5% 1.0% 0.5%

with no more than a high school diploma. In general, though, obesity tends to decline with increasing levels of education. Mental illness Capturing the full economic cost of mental disorders is problematic because many of the costs are hidden or difficult to detach from others externalities, such as drug abuse or alcoholism. For this reason, this study only examines the costs of absenteeism caused by depression in the workplace. Figure A9.4 summarizes the prevalence of self-reported frequent mental distress among adults by education level, based on data supplied by the CDC. 50 As shown, people with higher levels of education are less likely to suffer from mental illness, with the prevalence of mental illness being the highest among people with less than a high school diploma.

50 Centers for Disease Control and Prevention, “Table 1. Number of respondents to a question about mental health and percentage who self-reported frequent mental distress (FMD), by demographic characteristics -- United States, Behavioral Risk Factor Surveillance System, 1993-1996” in “Self-Reported Frequent Mental Distress Among Adults -- United States, 1993-1996.” Morbidity and Mortality Weekly Report 47, no. 16 (May 1998): 325-331.

FIGURE A9.4: Prevalence of frequent mental distress by education level

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Less than high school

High school graduate

Some college or technical school

College graduate

6 6

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