the median earnings for a 25 to 34 year old, full-time, year round worker with a high school education was about $31,830 in 2016, while similar workers with a bachelor's degree (but no further education) earned $49,990, and as a result, they pay more income tax. a. there a private benefit for individuals who attend college and earn a bachelor’s degree. b. does an individual's attainment of a bachelor's degree generate an externality? there is no way to determine whether there is an externality in this case. no externality exists because all of the benefits of a college education are private. a positive externality exists because college educated individuals pay higher taxes and are often considered more valuable to employers than individuals without college diplomas. a negative externality exists because individuals who receive a bachelor's degree could have spent the time working instead of attending college.
