Early Childhood Development: Economic Development with a High Public Return

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Early Childhood DevelopmentEconomic Development
with a High Public Return
Art Rolnick and Rob Grunewald Federal
Reserve Bank of Minneapolis
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High/Scope Study of Perry Preschool

• 123 children from low-income families in
  Ypsilanti, Mich.
• Children randomly selected to attend Perry or
  control group.
• Daily classroom session and weekly home visit.
• Tracked participants and control group through
  age 27.
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Perry Preschool IQ Over Time
Source High/Scope Educational Research Foundation
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Perry Educational Effects
Source High/Scope Educational Research Foundation
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Perry Economic Effects at Age 27
Source High/Scope Educational Research Foundation
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Perry Arrests per Person by Age 27
Source High/Scope Educational Research Foundation
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Perry PreschoolCosts and Benefits Over 27 Years
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Perry Preschool -- Return on Investment

• Total Benefit-Cost Ratio 8.74 to 1
• Estimated Total Annual Rate of Return 16
• Public Rate of Return 12
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Abecedarian, Educational Child Care

• Full-day, year-round program near Chapel
  Hill, N.C. Children from low-income families
  were randomly selected to attend Abecedarian or
  control group.
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Abecedarian Educational and Health Effects
Source Carolina Abecedarian Study
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Chicago Child-Parent Centers

• Half-day, large-scale program in Chicago
  public schools. Comparison group was a random
  sample of eligible nonparticipants.
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Yale Study of State-Funded Preschools

• Analysis of evaluations conducted on 13
  state funded preschool programs for low-income
  children from 1977 to 1998.

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Georgia's Pre-K Program

• Since 1993, parents can enroll children in
  4-year-old preschool. A study of the program was
  conducted in 2001.

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Stanford and UC-Berkeley Study of Child Care

• Studied 450 children age 12 to 42 months
  when their mothers entered welfare-to-work
  programs in San Francisco, San Jose and Tampa.

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Vital Ingredients of an ECD Program

• Fund at Perry School level to achieve high return
  on investment.
• Target at-risk children, but make available for
  all children.
• Allow for competition and specialization among
  providers.
• Test for program improvement and pay for
  demonstrated results.
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