1. The Economics of Early Childhood Programs: Lasting Benefits and Large Returns Loyola University Chicago March 15, 2013 Milagros Nores, PhD Steve Barnett, PhD NIEER.ORG

2. Potential Gains from ECEC Investments Educational Success and Economic Productivity  Achievement test scores  Special education and grade repetition  High school graduation  Behavior problems, delinquency, and crime  Employment, earnings, and welfare dependency  Smoking, drug use, depression Decreased Costs to Government  Schooling costs  Social services costs  Crime costs  Health care costs (teen pregnancy and smoking)

3. ECEC programs 0-5 in the US produce long-term gains: 123 studies since 1960

4. Results from the Newest Studies Preschool by itself can close half the achievement gap (meta-analysis 123 studies) State funded pre-K has effects similar in size to Chicago Child Parent Centers (8 states) NJ (5 th grade) and AR (3 rd grade) long-term effects on achievement (in NJ Abbotts no fade-out) on math and reading Chicago RCT of half v. full-day: larger effects of full-day on vocabulary and literacy

5. …Results from the Newest Studies Tennessee: Positive gains in randomized trial as well Rhode Island: Positive gains for all, larger gains for poor Boston Pre-K—strong effects on language, literacy, math, and executive function Oklahoma: Grade 3 gains on attention and math; more former pre-K take tests so underestimate effects on tests.

6. Nores and Barnett, 2009. Effects of ECD Programs for 4 Outcomes by Type of Program: Global Research

7. What works? Intentional teaching Balanced curriculum –Cognitive and Socio-Emotional Individualization –Small-group and one-on-one Well-educated, adequately paid staff Strong supervision and monitoring

8. Key Lessons Immediate impact should be at least twice the size of desired long-term impact Some programs are much more effective than others Multiple approaches to early intervention are effective, but education is a key element

9. Three Benefit-Cost Analyses with Disadvantaged Children Barnett, W. S., & Masse, L. N. (2007). Early childhood program design and economic returns: Comparative benefit-cost analysis of the Abecedarian program and policy implications, Economics of Education Review, 26, 113-125; Temple, J. A., & Reynolds, A. J. (2007). Benefits and costs of investments in preschool education: Evidence from the Child-Parent Centers and related programs. Economics of Education Review, 26(1), 126-144; Schweinhart, L. J., Montie, J., Xiang, Z., Barnett, W. S., Belfield, C. R., & Nores, M. (2005). Lifetime effects: The High/Scope Perry Preschool study through age 40 (Monographs of the High/Scope Educational Research Foundation, 14). Ypsilanti, MI: High/Scope Educational Research Foundation.

10. High/Scope Perry Preschool: Educational Effects Berrueta-Clement, J.R., Schweinhart, L.J., Barnett, W.S., Epstein, A.S., & Weikart, D.P. (1984). Changed lives: The effects of the Perry Preschool Program on youths through age 19. Ypsilanti, MI: High/Scope Press.

11. Perry Preschool: Economic Effects at 40 Schweinhart, L. J., Montie, J., Xiang, Z., Barnett, W. S., Belfield, C. R., & Nores, M. (2005). Lifetime effects: The High/Scope Perry Preschool study through age 40 (Monographs of the High/Scope Educational Research Foundation, 14). Ypsilanti, MI: High/Scope Educational Research Foundation.

12. Perry Preschool: Crime Effects at 40 Schweinhart, L. J., Montie, J., Xiang, Z., Barnett, W. S., Belfield, C. R., & Nores, M. (2005). Lifetime effects: The High/Scope Perry Preschool study through age 40 (Monographs of the High/Scope Educational Research Foundation, 14). Ypsilanti, MI: High/Scope Educational Research Foundation.

13. Abecedarian : Academic Benefits Barnett, W. S., & Masse, L. N. (2007). Early childhood program design and economic returns: Comparative benefit-cost analysis of the Abecedarian program and policy implications, Economics of Education Review, 26, 113-125; Campbell, F.A., Ramey, C.T., Pungello, E., Sparling, J., & Miller-Johnson, S. ( 2002). Early childhood education: Young adult outcomes from the Abecedarian Project. Applied Developmental Science, 6(1), 42-57.

14. Chicago CPC: Academic and Social Benefits at School Exit Temple, J. A., & Reynolds, A. J. (2007). Benefits and costs of investments in preschool education: Evidence from the Child-Parent Centers and related programs. Economics of Education Review, 26(1), 126-144

15. Economic Returns to Pre-K (In 2006 dollars, 3% discount rate) Cost Benefits B/C  Perry Pre-K $17,599 $284,086 16  Abecedarian$70,697$176,284 2.5  Chicago$ 8,224$ 83,511 10 Barnett, W. S., & Masse, L. N. (2007). Early childhood program design and economic returns: Comparative benefit-cost analysis of the Abecedarian program and policy implications, Economics of Education Review, 26, 113-125; Belfield, C., Nores, M., Barnett, W.S., & Schweinhart, L.J. (2006). The High/Scope Perry Preschool Program. Journal of Human Resources, 41(1), 162-190; Temple, J. A., & Reynolds, A. J. (2007). Benefits and costs of investments in preschool education: Evidence from the Child-Parent Centers and related programs. Economics of Education Review, 26(1), 126-144.

16. Key Lessons Economic returns to early education are high (7-16:1) Intensity and duration affect returns Returns depend on soft skills as well as hard skills

17. Results Depend on Quality Large scale public programs have sometimes failed to deliver the promised returns These large scale public programs have not been designed to duplicate the models successful in research, but to be cheaper Proper design, high standards, adequate funding, and evaluation can ensure success

18. Effectiveness follows quality: Pre-K achievement gains CPC Tulsa 8 St Head Start Language na na.26.09 (.13) Math.33.36.32.12 (.18) Literacy na.99.80.25 (.34) Effects in standard deviations. Figures in parentheses are adjusted for noncompliance.

19. Keys to Education Quality High standards and sufficient funding Balanced—Cognitive, social, emotional Implemented as designed Well-trained, adequately paid staff Strong supervision and monitoring Use data to inform practice

20. Teacher with BA & ECE + asst. in each class; Full-day (6 hour educational day), 180-day program, plus extended day/full year; Access to all 3 and 4 yr. olds in 31 school systems; Maximum class size of 15 students; Evidence-based curricula; Early learning standards and program guidelines; Support for potential learning difficulties; and Professional development for key staff. NJ’s Urban Pre-K Transformation

22. Increased Quality in NJ Pre-K Improved Education Outcomes Gains in language, literacy, math 2 years have twice the effect of 1 2 years closed 40% of the achievement gap Effects sustained through 2 nd grade Grade repetition cut in half by 2nd grade

23. Three early education sectors Private child care and preschool –Lowest quality –Minimal benefits Head Start and Early Head Start –Better quality –Modest benefits State Pre-K –Highly variable quality –Highly variable benefits

24. Preschool Quality in California

25. Conclusions  ECEC can be a strong public investment  Increased educational achievement and attainment  Decreased economic and educational inequality and fewer social problems  Job and GDP growth (local and national)  Intensity and quality are the keys to high returns  Continuous improvement cycles can assure quality

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