Economics of Investments in Early Childhood Development    Paris, France June 22, 2010 Steve Barnett, PhD
Impacts of ECD Investments <ul><li>Educational Success and Economic Productivity </li></ul><ul><li>Achievement test scores...
Meta-Analysis of US Research Since 1960 <ul><li>N= 123 Intervention Studies  </li></ul><ul><li>Effects on Cognitive Abilit...
Meta-Analysis of Research Globally <ul><li>N= 38 Intervention Studies ( higher quality studies) </li></ul><ul><li>Cognitiv...
Three Benefit-Cost Analyses with Disadvantaged Children   Barnett, W. S., & Masse, L. N. (2007).  Early childhood program ...
Economic Returns to Pre-K   for Disadvantaged Children  (In 2006 dollars, 3% discount rate)   <ul><ul><ul><ul><ul><li>Cost...
High/Scope Perry Preschool:  Educational Effects Berrueta-Clement, J.R., Schweinhart, L.J., Barnett, W.S., Epstein, A.S., ...
High/Scope Perry Preschool: Economic Effects at Age 27 Barnett, W.S. (1996).  Lives in the balance: Benefit-cost analysis ...
High/Scope Perry Preschool:  Arrests per person by age 27 Barnett, W.S. (1996).  Lives in the balance: Benefit-cost analys...
Chicago CPC: Academic and Social Benefits at School Exit Temple, J. A., & Reynolds, A. J.  (2007). Benefits and costs of i...
Is Pre-K Just for Disadvantaged ?  <ul><li>School failure is not limited to the poor </li></ul><ul><li>All children gain f...
Cognitive Development Gap Lost Potential Growth Barnett, W. S. (2007).  Original analysis of data from the US Department o...
Social Skills Gap Barnett, W. S. (2007).  Original analysis of data from the US Department of Education, National Center f...
School Failure and the Middle Class <ul><li>Middle class children have fairly high rates of failure. </li></ul><ul><li>Red...
Program Quality Matters   <ul><li>Designed to be educationally effective </li></ul><ul><li>Implemented as Designed </li></...
Conclusions <ul><li>ECDI  can  be a strong public investment </li></ul><ul><ul><li>Decreased social problems  and inequali...
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Economics of Investments in Early Childhood Development

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  • Research outside the United States has been more limited, but is highly consistent. A meta-analysis limited to only relatively rigorous studies finds long-term effect sizes of about the same size as in the United States in a wide range of developed and developing countries. Again, there are substantial effects on social, schooling, and other outcomes as well as cognitive ability.
  • Economics of Investments in Early Childhood Development

    1. 1. Economics of Investments in Early Childhood Development Paris, France June 22, 2010 Steve Barnett, PhD
    2. 2. Impacts of ECD Investments <ul><li>Educational Success and Economic Productivity </li></ul><ul><li>Achievement test scores </li></ul><ul><li>Special education and grade repetition </li></ul><ul><li>High school graduation </li></ul><ul><li>Behavior problems, delinquency, and crime </li></ul><ul><li>Employment, earnings, and welfare dependency </li></ul><ul><li>Smoking, drug use, depression </li></ul><ul><li>Decreased Costs to Government </li></ul><ul><li>Schooling costs </li></ul><ul><li>Social services costs </li></ul><ul><li>Crime costs </li></ul><ul><li>Health care costs (teen pregnancy and smoking) </li></ul>Barnett, W. S. (2002) Early childhood education. In A. Molnar (Ed.) School reform proposals: The research evidence (pp.1-26). Greenwich, CT: Information Age Publishing.
    3. 3. Meta-Analysis of US Research Since 1960 <ul><li>N= 123 Intervention Studies </li></ul><ul><li>Effects on Cognitive Abilities ( higher quality studies) </li></ul><ul><li>.70 sd initial effect ( .90 max) </li></ul><ul><li>. 35 sd at ages 5-10 ( .60 max) </li></ul><ul><li>.30 sd at age >10 ( .45 max) </li></ul><ul><li>Effect on Social-Emotional & Behavior </li></ul><ul><li>.14 sd no change over time, larger in higher quality </li></ul><ul><li>Effect on Schooling (grade rep., spec. ed., grad.) </li></ul><ul><li>.15 sd no change over time </li></ul>Camilli et al. (2010) Meta-Analysis. Teachers College Record .
    4. 4. Meta-Analysis of Research Globally <ul><li>N= 38 Intervention Studies ( higher quality studies) </li></ul><ul><li>Cognitive Ability Effects: </li></ul><ul><li>.30 sd at ages 5-18 </li></ul><ul><li>.41 sd at age >18 </li></ul><ul><li>.27 sd Effect: Social-Emotional & Behavior </li></ul><ul><li>.27 sd Effect: Schooling </li></ul><ul><li>.31 sd Effect: Health </li></ul><ul><li>.26 sd Low/Middle income countries </li></ul><ul><li>.32 sd Upper Middle/High income countries </li></ul>
    5. 5. 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.
    6. 6. Economic Returns to Pre-K for Disadvantaged Children (In 2006 dollars, 3% discount rate) <ul><ul><ul><ul><ul><li>Cost Benefits B/C </li></ul></ul></ul></ul></ul><ul><li>Perry Pre-K $17,599 $284,086 16 </li></ul><ul><li>Abecedarian $70,697 $176,284 2.5 </li></ul><ul><li>Chicago $ 8,224 $ 83,511 10 </li></ul>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 .
    7. 7. 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.
    8. 8. High/Scope Perry Preschool: Economic Effects at Age 27 Barnett, W.S. (1996). Lives in the balance: Benefit-cost analysis of the Perry Preschool Program through age 27. Monographs of the High/Scope Educational Research Foundation. Ypsilanti, MI: High/Scope Press.
    9. 9. High/Scope Perry Preschool: Arrests per person by age 27 Barnett, W.S. (1996). Lives in the balance: Benefit-cost analysis of the Perry Preschool Program through age 27 . Monographs of the High/Scope Educational Research Foundation. Ypsilanti, MI: High/Scope Press.
    10. 10. 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
    11. 11. Is Pre-K Just for Disadvantaged ? <ul><li>School failure is not limited to the poor </li></ul><ul><li>All children gain from pre-K </li></ul><ul><li>Disadvantaged children gain more </li></ul><ul><li>Peer effects may be substantial </li></ul><ul><li>Better coverage of disadvantaged children in universal programs </li></ul><ul><li>Higher cost, but a larger net benefit </li></ul>
    12. 12. Cognitive Development Gap Lost Potential Growth Barnett, W. S. (2007). Original analysis of data from the US Department of Education, National Center for Educational Statistics, ECLS-K Base Year Data files and Electronic Codebook (2002). Lost Potential Growth
    13. 13. Social Skills Gap Barnett, W. S. (2007). Original analysis of data from the US Department of Education, National Center for Educational Statistics, ECLS-K Base Year Data files and Electronic Codebook (2002). Lost Potential Growth
    14. 14. School Failure and the Middle Class <ul><li>Middle class children have fairly high rates of failure. </li></ul><ul><li>Reducing these problems could generate large benefits. </li></ul><ul><li>Income Retention ( 2004) Dropout ( 2005) </li></ul><ul><li>Lowest 20% 12% 18% </li></ul><ul><li>20-80% 8% 9% </li></ul><ul><li>Highest 20% 4% 2% </li></ul>Barnett, W. S. (in press). Benefits and costs of quality early childhood education. The Children's Legal Rights Journal (CLRJ) , Spring 2007. US Department of Commerce, Census Bureau, Current Population Survey, October 2004 and October 2005.
    15. 15. Program Quality Matters <ul><li>Designed to be educationally effective </li></ul><ul><li>Implemented as Designed </li></ul><ul><li>Strong Staff and good ratio </li></ul><ul><li>Strong Supervision and Monitoring </li></ul><ul><li>Use data to Inform Policy & Practice </li></ul>
    16. 16. Conclusions <ul><li>ECDI can be a strong public investment </li></ul><ul><ul><li>Decreased social problems and inequality </li></ul></ul><ul><ul><li>Increased productivity and GDP growth </li></ul></ul><ul><li>Care and education considered together </li></ul><ul><li>Not just for the disadvantaged </li></ul><ul><li>High quality (educational effectiveness) is key </li></ul>

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