Reducing the time it takes for a student to complete college could add trillions of dollars in wealth to the U.S. economy. Changes in the labor market and educational institutions mean that now is the perfect time to alter the required time to attain a college degree, says Reuven Brenner, the Repap Chair at McGill University’s Desautels Faculty of Management.
- Assume that after graduation the average salary would be just $20,000 and remain there.
- With 4 million students finishing one year earlier, this would add $80 billion to the national income during that year.
- Or at an average annual income of $40,000, it would add $160 billion.
- Assume now that the additional $80 billionin national income would be compounding at 7 percent over the next 40 years.
- This would then amount to an additional $1.2 trillion of wealth — for just one generation of 4 million students joining the labor force a year earlier at a $20,000 salary.