1. Inv£sting in
Children
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Watch a video of this
presentation at:
http://vimeo.com/110338487

2. A Summary of economic
arguments in favour of investing in
children
2
The content of this
presentation is
(mostly) based upon:
James Heckman,
2006, Skill formation and
the economics of investing
in disadvantaged children,
in Science, vol. 312.

3. Heckman: Four core concepts
1. Brain architecture and skill development is a
result of interaction between genetics and the
environment.
2. The skills required for economic success are
built upon sound foundations of laid earlier in
life.
3. The developing child’s cognitive, linguistic ,
social, and emotional competencies are
interdependent and shaped by experience.
4. Human adaptability and brain plasticity occurs at
predictable and sensitive times in the lifespan.
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4. “Virtually every aspect of
human development, from
the brain’s evolving circuitry
to the child’s capacity for
empathy, is affected by the
environments and
experiences that are
encountered in a
cumulative fashion,
beginning in the prenatal
period and extending
throughout the early
childhood years”.
(Shonkoff & Phillips, 2000) 4

5. Early family environments that do not stimulate
cognitive and non-cognitive skills place
children at a disadvantage which is more than just
a lack of financial resources. (Heckman et al, 2003)
5 Levitt, 2009

6. Extreme non-stimulation: Neglect
6
Perry, Maltreatment and the Developing Child, 2004

7. Cultures of Disadvantage: Influence of
mother’s education on offspring’s test scores
Heckman et al, 2006 7

8. Cognitive skills are important, but non-cognitive
perseverance and tenacity are also
important for success in life. (Heckman, 2006)
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skills such as motivation,
However,
intervention
programmes
(i.e. Head Start and
Sure Start) are often
evaluated using cognitive
(school based) test scores.
Often considered as failing
to raise (cognitive) IQ scores.

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10. 10

11. Families and not schools are the major sources
of inequality in student performance.
(Heckman interpreting the Coleman Report, 1966)
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12. Conclusions…
Investing in disadvantaged young children is a
public policy initiative that promotes fairness
and social justice while also promoting later
productivity in the labour market.
By Year 3 gaps in test scores across socioeconomic groups are
stable by age. Suggesting that later schooling or variations in
schooling quality have little effect in reducing or widening the
gaps that appear before students enter school.
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Early interventions targeted towards
disadvantaged children have much higher
returns than later interventions and
remedial investments.