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

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Presentation transcript:

Early Childhood Development: Economic Development with a High Public Return Art Rolnick Federal Reserve Bank of Minneapolis

High/Scope Study of Perry Preschool In early 1960s, 123 children from low-income families in Ypsilanti, Mich. Children randomly selected to attend Perry or control group. High-quality program with well trained teachers, daily classroom sessions and weekly home visits. Tracked participants and control group through age 40.

Perry: Educational Effects Source: High/Scope Educational Research Foundation

Perry: Economic Effects at Age 40 Source: High/Scope Educational Research Foundation

Perry: Arrested 5 or More Times Before Age 40 Source: High/Scope Educational Research Foundation

Perry: Average Number of Months Served in Prison by Age 40 Source: High/Scope Educational Research Foundation

Perry Preschool Costs and Benefits Over 62 Years

Perry Preschool — Estimated Return on Investment Benefit-Cost Ratio = $17 to $1 Annual Rate of Return = 18% Public Rate of Return = 16%

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.

Abecedarian: Educational and Health Effects Source: Carolina Abecedarian Study

Chicago Child-Parent Centers Half-day, large-scale program in Chicago public schools. Comparison group was a random sample of eligible nonparticipants.

Chicago Child-Parent Centers Source: Arthur Reynolds, et al.

Elmira Prenatal/Early Infancy Project Higher-Risk Families Home visiting program by registered nurses for at-risk mothers, prenatal through first two years of child’s life. Randomly selected participants were compared with a control group.

Elmira Prenatal/Early Infancy Project High-Risk Families Source: David Olds, et al.

Benefit-Cost Ratios for Other Longitudinal Studies Abecedarian Educational Child Care $4 to $1 Chicago-Child Parent $7 to $1 Elmira Prenatal/Early Infancy Project $5 to $1

Lessons Learned from Research Invest in quality Reach at-risk population Teach cognitive and noncognitive skills Bring to scale

Market-Oriented ECD Proposal Provide scholarships and mentors to parents with at-risk children. Scholarships designed to reward performance and encourage high-quality and innovative practices. Financed by endowed fund.

Business Leadership in ECD Invest in Kids Working Group – Committee for Economic Development Success By Six – United Way PNC Financial Services – Grow Up Great Minnesota Business for Early Learning