1 / 12

Early Childhood Development: Economic Development with a High Public Return

Early Childhood Development: Economic Development with a High Public Return. Art Rolnick and Rob Grunewald Federal Reserve Bank of Minneapolis. High/Scope Study of Perry Preschool. 123 children from low-income families in Ypsilanti, Mich.

victor-strickland
Download Presentation

Early Childhood Development: Economic Development with a High Public Return

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Early Childhood Development:Economic Development with a High Public Return Art Rolnick and Rob Grunewald Federal Reserve Bank of Minneapolis

  2. 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.

  3. Perry Preschool IQ Over Time Prepared by W. Steven Barnett, Rutgers University

  4. Perry: Educational Effects Prepared by W. Steven Barnett, Rutgers University

  5. Perry: Economic Effects at Age 27 Prepared by W. Steven Barnett, Rutgers University

  6. Perry: Arrests per Person by Age 27 Prepared by W. Steven Barnett, Rutgers University

  7. Perry PreschoolCosts and Benefits Over 27 Years

  8. 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%

  9. Other Longitudinal Studies Chicago, Child-Parent Centers Half-day large-scale program in Chicago public schools Abecedarian, educational child care Full-day year-round program in Chapel Hill, N.C.

  10. Vital Ingredients of an ECD Program • Fund at Perry Preschool 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.

  11. Cost estimate to educate all 3- and 4-year-old children from low-income families in Minnesota at a high-quality ECD program 3- and 4-year-old children living in poverty 20,000 Cost per child $9,500 Total $190,000,000 Current funds available $85,000,000 Total annual need $105,000,000

  12. Endowment for Early Childhood Development vs. Incentives to Relocate Businesses • A $1.5 billion endowment could raise $105 million per year to meet current funding gap for ECD. • Proposals to build and renovate professional sports stadiums total over $1 billion. • Incentives used to relocate businesses in Minnesota have totaled over $500 million.

More Related