|Equation||(# participants completing at least a year of ESL) x (% participants who get ESL classes solely because of program) x (% impact of ESL programs on annual earnings) x ($ average annual earnings of individuals who don’t speak English) x (# working years)|
|Explanation||This metric the impact of a program that increases spoken English skills for individuals for whom English is not their first language (ESL) on lifetime earnings.|
Number of participants completing a year of ESL: Reported by program.
Percentage of participants who get ESL classes solely because of program: Computed by the Constellation Fund staff.
Impact of ESL programs on annual earnings: [15%] for high-quality programs and [6%] for low-quality programs. The Constellation Fund staff estimate these parameters using an ordinary least square regression with the following parameters:
The high impact of 15% is the percentage change in average annual earnings associated with going from “not speaking English at all” to “speaking well.” The low impact of 6% is the percentage change in average annual earnings associated with going from “not speaking English at all” to “speaking not well.”
Average annual earnings of individuals who do not speak English: [$23,662], The is the average annual earnings of individuals who don’t speak English, are not citizens, and are under 185% of the federal poverty level computed using ACS data (U.S. Census Bureau, 2016).
Number of working years: Estimate from participation age to age 65.
These benefits are then discounted to present value.
|References||U.S. Census Bureau. (2016). American Community Survey 5-year estimates – public use microdata sample, 2012-2016. Generated using Public Use Microdata Area (PUMA) in the Seven-county Twin Cities Metropolitan Area. Retrieved from http://factfinder.census.gov|