The Economic Case for Investments in Young Children<br />                        Rob Grunewald<br />       Federal Reserve...
Educational Characteristics of the Labor ForceMillions of Workers Age 25 and Over<br />Source: Ellwood (2001)<br />
Four Numbers to Remember<br />700 per second<br />18 months<br />2:1 ratio<br />3:1 odds<br />
Human Brain at Birth<br />14 Years Old<br />6 Years Old<br />4<br />
Human Brain DevelopmentSynapse Formation Dependent on Early Experiences<br />Language<br />Higher Cognitive Function<br />...
Barriers to Social Mobility Emerge at a Very Young Age<br />1200<br />College Educated Parents<br />600<br />Cumulative Vo...
Risk Factors for Adult Substance Abuse are Embedded in Adverse Childhood Experiences<br /> Self-Report: Alcoholism        ...
Risk Factors for Adult Depression are Embedded in Adverse Childhood Experiences<br />5<br />4<br />3<br />Odds Ratio<br />...
Risk Factors for Adult Heart Disease are Embedded in Adverse Childhood Experiences<br />3.5<br />3<br />2.5<br />Odds Rati...
High/Scope Study of Perry Preschool<br />In early 1960s, 123 children from low-income families in Ypsilanti, Mich. <br />C...
Perry: Educational Effects<br />Source: High/Scope Educational Research Foundation<br />
Perry: Economic Effects at Age 40<br />Source: High/Scope Educational Research Foundation<br />
Perry: Arrested 5 or More Times Before Age 40<br />Source: High/Scope Educational Research Foundation<br />
Perry: Average Number of Months Served in Prison by Age 40<br />Source: High/Scope Educational Research Foundation<br />
Perry PreschoolCosts and Benefits Over 62 Years<br />Source: High/Scope Educational Research Foundation<br />
Perry Preschool — Estimated Return on Investment<br />Benefit-Cost Ratio = $16 to $1<br />Annual Rate of Return = 18%<br /...
Abecedarian, Educational Child Care<br />Full-day, year-round program near Chapel Hill, N.C.  Children from low-income fam...
Abecedarian: Educational and Health Effects<br />Source: Carolina Abecedarian Study<br />
Chicago Child-Parent Centers<br />     Half-day, large-scale program in Chicago public schools. Comparison group was a sam...
Chicago Child-Parent Centers<br />Source: Arthur Reynolds, et al.<br />
Elmira Prenatal/Early Infancy ProjectHigher-Risk Families  <br />Home visiting program by registered nurses for at-risk mo...
Elmira Prenatal/Early Infancy ProjectHigh-Risk Families<br />Source: David Olds, et al.  <br />
Benefit-Cost Ratios for Other Longitudinal Studies<br />Abecedarian Educational Child Care <br />$4 to $1 <br />Chicago-Ch...
Short-Run Benefits<br />Allow parents to enter workforce<br />Reduce absenteeism and turnover<br />Attract businesses<br />
Lessons Learned from Research <br />Invest in quality<br />Involve parents<br />Start early<br />Reach at-risk population<...
Moving Forward<br />Prenatal/early infant home visits for at-risk mothers <br />Access to health care<br />Parent educatio...
Business Leadership in Early Childhood Development<br />Partnership for America’s Economic Success & Committee for Economi...
“Although education and the acquisition of skills is a lifelong process, starting early in life is crucial. Recent researc...
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Grunewald Economic Case

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"The Economic Case for Investments in Young Children"

A presentation to the 25th Anniversary Speak Out for Kids Luncheon in St. Louis, MO - held by Citizens for Missouri's Children on 10/29/09.

Published in: Education, Economy & Finance
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Grunewald Economic Case

  1. 1. The Economic Case for Investments in Young Children<br /> Rob Grunewald<br /> Federal Reserve Bank of Minneapolis<br />
  2. 2. Educational Characteristics of the Labor ForceMillions of Workers Age 25 and Over<br />Source: Ellwood (2001)<br />
  3. 3. Four Numbers to Remember<br />700 per second<br />18 months<br />2:1 ratio<br />3:1 odds<br />
  4. 4. Human Brain at Birth<br />14 Years Old<br />6 Years Old<br />4<br />
  5. 5. Human Brain DevelopmentSynapse Formation Dependent on Early Experiences<br />Language<br />Higher Cognitive Function<br />Sensory Pathways<br />(Vision, Hearing)<br />FIRST YEAR<br />-8 -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 <br />Birth<br />(Months)<br />(Years)<br />Source: C. Nelson (2000) <br />
  6. 6. Barriers to Social Mobility Emerge at a Very Young Age<br />1200<br />College Educated Parents<br />600<br />Cumulative Vocabulary (Words)<br />Welfare Parents<br />200<br />16 mos.<br />24 mos.<br />36 mos.<br />Child’s Age (Months)<br />Source: Hart & Risley (1995) <br />
  7. 7. Risk Factors for Adult Substance Abuse are Embedded in Adverse Childhood Experiences<br /> Self-Report: Alcoholism Self-Report: Illicit Drugs<br />40<br />16<br />35<br />14<br />%<br />%<br />30<br />12<br />25<br />10<br />20<br />8<br />15<br />6<br />10<br />4<br />5<br />2<br />0<br />0<br />ACEs<br />0<br />1<br />2<br />3<br />4<br />5+<br />0<br />1<br />2<br />3<br />4<br />Source: Dube et al, 2002 Source: Dube et al, 2005<br />
  8. 8. Risk Factors for Adult Depression are Embedded in Adverse Childhood Experiences<br />5<br />4<br />3<br />Odds Ratio<br />2<br />1<br />0<br />1<br />2<br />3<br />4<br />5+<br />ACEs<br />Source: Chapman et al, 2004<br />
  9. 9. Risk Factors for Adult Heart Disease are Embedded in Adverse Childhood Experiences<br />3.5<br />3<br />2.5<br />Odds Ratio<br />2<br />1.5<br />1<br />0.5<br />0<br />1<br />2<br />3<br />4<br />5,6<br />7,8<br />ACEs<br />Source: Dong et al, 2004<br />
  10. 10. High/Scope Study of Perry Preschool<br />In early 1960s, 123 children from low-income families in Ypsilanti, Mich. <br />Children randomly selected to attend Perry or control group.<br />High-quality program with well trained teachers, daily classroom sessions and weekly home visits.<br />Tracked participants and control group through age 40.<br />
  11. 11. Perry: Educational Effects<br />Source: High/Scope Educational Research Foundation<br />
  12. 12. Perry: Economic Effects at Age 40<br />Source: High/Scope Educational Research Foundation<br />
  13. 13. Perry: Arrested 5 or More Times Before Age 40<br />Source: High/Scope Educational Research Foundation<br />
  14. 14. Perry: Average Number of Months Served in Prison by Age 40<br />Source: High/Scope Educational Research Foundation<br />
  15. 15. Perry PreschoolCosts and Benefits Over 62 Years<br />Source: High/Scope Educational Research Foundation<br />
  16. 16. Perry Preschool — Estimated Return on Investment<br />Benefit-Cost Ratio = $16 to $1<br />Annual Rate of Return = 18%<br />Public Rate of Return = 16%<br />
  17. 17. Abecedarian, Educational Child Care<br />Full-day, year-round program near Chapel Hill, N.C. Children from low-income families were randomly selected to attend Abecedarian or control group. <br />  <br />
  18. 18. Abecedarian: Educational and Health Effects<br />Source: Carolina Abecedarian Study<br />
  19. 19. Chicago Child-Parent Centers<br /> Half-day, large-scale program in Chicago public schools. Comparison group was a sample of eligible nonparticipants.<br />  <br />
  20. 20. Chicago Child-Parent Centers<br />Source: Arthur Reynolds, et al.<br />
  21. 21. Elmira Prenatal/Early Infancy ProjectHigher-Risk Families <br />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. <br />  <br />
  22. 22. Elmira Prenatal/Early Infancy ProjectHigh-Risk Families<br />Source: David Olds, et al. <br />
  23. 23. Benefit-Cost Ratios for Other Longitudinal Studies<br />Abecedarian Educational Child Care <br />$4 to $1 <br />Chicago-Child Parent<br />$7 to $1 <br />Elmira Prenatal/Early Infancy Project<br />$5 to $1 <br />
  24. 24. Short-Run Benefits<br />Allow parents to enter workforce<br />Reduce absenteeism and turnover<br />Attract businesses<br />
  25. 25. Lessons Learned from Research <br />Invest in quality<br />Involve parents<br />Start early<br />Reach at-risk population<br />Teach cognitive and noncognitive skills<br />Bring to scale<br />
  26. 26. Moving Forward<br />Prenatal/early infant home visits for at-risk mothers <br />Access to health care<br />Parent education<br />Quality child care<br />Access to preschool<br />
  27. 27.
  28. 28. Business Leadership in Early Childhood Development<br />Partnership for America’s Economic Success & Committee for Economic Development<br />Success By 6 – United Way <br />PNC Financial Services, Gates Foundation<br />Minnesota Early Learning Foundation<br />
  29. 29. “Although education and the acquisition of skills is a lifelong process, starting early in life is crucial. Recent research – some sponsored by the Federal Reserve Bank of Minneapolis in collaboration with the University of Minnesota – has documented the high returns that early childhood programs can pay in terms of subsequent educational attainment and in lower rates of social problems, such as teenage pregnancy and welfare dependency.”<br />Remarks by Federal Reserve Board Chairman Ben S. Bernanke <br /> Before the Greater Omaha Chamber of Commerce, <br /> February 6, 2007<br />
  30. 30. minneapolisfed.org<br />
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