The Economic Development Benefits of Universal Preschool Education Compared to Traditional Economic

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The Economic Development Benefits of Universal
Preschool Education Compared to Traditional
Economic Development Programs

• Timothy J. Bartik, Senior Economist
• W.E. Upjohn Institute for Employment Research
• 300 S. Westnedge Avenue
• Kalamazoo, MI 49007-4686
• Email bartik_at_upjohninstitute.org
• May 16, 2006
• This research was funded by the Committee for
  Economic Development through a grant from The Pew
  Charitable Trusts Advancing Quality
  Pre-Kindergarten for All initiative. Based on
  Taking Preschool Education Seriously as an
  Economic Development Program (available at
  http//www.upjohninstitute.org/preschool/full_repo
  rt.pdf).

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Two Questions Addressed by this Project

• What effect does high quality universal preschool
  education have on the economic development of a
  state economy?
• How do effects of preschool compare with effects
  of economic development subsidies to business of
  the same size?

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Effects on present value of real earnings, per
1.00 invested in that policy
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National economic development effects of
universal preschool in long-run
Note Absolute effects are in year 2080, for
program starting in 2007. All dollar figures are
in 2004 dollars.
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Summary points

• Rigorous studies suggest high quality preschool
  may increase participant earnings by 15 to 30
• Even with most conservative assumptions, effect
  of universal preschool on national economy of at
  least 1 or 2
• 1 or 2 effect on the national economy is huge
  compared to the cost of universal preschool