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The Economic Case for Investments in Young Children Rob Grunewald Federal Reserve Bank of Minneapolis
Educational Characteristics of the Labor Force Millions of Workers Age 25 and Over Source: Ellwood (2001)
Four Numbers to Remember ,[object Object],[object Object],[object Object],[object Object]
Human Brain  at Birth 6 Years Old 14 Years Old
Human Brain Development Synapse Formation Dependent on Early Experiences  FIRST YEAR -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  Birth (Months) (Years) Sensory Pathways (Vision, Hearing) Language Higher Cognitive Function Source: C. Nelson (2000)
Barriers to Social Mobility Emerge  at a Very Young Age 16 mos. 24 mos. 36 mos. Cumulative Vocabulary (Words) College Educated Parents Welfare  Parents Child’s Age (Months) 200 600 1200 Source: Hart & Risley (1995)
Risk Factors for Adult Substance Abuse are Embedded in Adverse Childhood Experiences 0 2 4 6 8 10 12 14 16 0 1 2 3 4 Self-Report: Alcoholism  Self-Report: Illicit Drugs Source: Dube et al, 2002    Source: Dube et al, 2005 % % ACEs 0 5 10 15 20 25 30 35 40 0 1 2 3 4 5+
Risk Factors for Adult Depression are Embedded in Adverse Childhood Experiences   Odds Ratio ACEs Source: Chapman et al, 2004 0 1 2 3 4 5+ 1 2 4 3 5
Risk Factors for Adult Heart Disease are Embedded in Adverse Childhood Experiences   ACEs Source: Dong et al, 2004 Odds Ratio 0 1 2 3 4 5,6 7,8 0.5 1 1.5 2 2.5 3 3.5
High/Scope Study of Perry Preschool ,[object Object],[object Object],[object Object],[object Object]
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   Source: High/Scope Educational Research Foundation
Perry Preschool —  Estimated Return on Investment ,[object Object],[object Object],[object Object]
Abecedarian, Educational Child Care   ,[object Object],[object Object]
Abecedarian: Educational and  Health Effects Source: Carolina Abecedarian Study
Chicago Child-Parent Centers   ,[object Object],[object Object]
Chicago Child-Parent Centers Source: Arthur Reynolds, et al.
Elmira Prenatal/Early Infancy Project Higher-Risk Families  ,[object Object],[object Object]
Elmira Prenatal/Early Infancy Project High-Risk Families Source: David Olds, et al.
Benefit-Cost Ratios for  Other Longitudinal Studies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Short-Run Benefits ,[object Object],[object Object],[object Object]
Lessons Learned from Research  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Moving Forward ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Business Leadership in  Early Childhood Development ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
minneapolisfed.org

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The Economic Case for Investments in Young Children

  • 1. The Economic Case for Investments in Young Children Rob Grunewald Federal Reserve Bank of Minneapolis
  • 2. Educational Characteristics of the Labor Force Millions of Workers Age 25 and Over Source: Ellwood (2001)
  • 3.
  • 4. Human Brain at Birth 6 Years Old 14 Years Old
  • 5. Human Brain Development Synapse Formation Dependent on Early Experiences FIRST YEAR -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 Birth (Months) (Years) Sensory Pathways (Vision, Hearing) Language Higher Cognitive Function Source: C. Nelson (2000)
  • 6. Barriers to Social Mobility Emerge at a Very Young Age 16 mos. 24 mos. 36 mos. Cumulative Vocabulary (Words) College Educated Parents Welfare Parents Child’s Age (Months) 200 600 1200 Source: Hart & Risley (1995)
  • 7. Risk Factors for Adult Substance Abuse are Embedded in Adverse Childhood Experiences 0 2 4 6 8 10 12 14 16 0 1 2 3 4 Self-Report: Alcoholism Self-Report: Illicit Drugs Source: Dube et al, 2002 Source: Dube et al, 2005 % % ACEs 0 5 10 15 20 25 30 35 40 0 1 2 3 4 5+
  • 8. Risk Factors for Adult Depression are Embedded in Adverse Childhood Experiences Odds Ratio ACEs Source: Chapman et al, 2004 0 1 2 3 4 5+ 1 2 4 3 5
  • 9. Risk Factors for Adult Heart Disease are Embedded in Adverse Childhood Experiences ACEs Source: Dong et al, 2004 Odds Ratio 0 1 2 3 4 5,6 7,8 0.5 1 1.5 2 2.5 3 3.5
  • 10.
  • 11. Perry: Educational Effects Source: High/Scope Educational Research Foundation
  • 12. Perry: Economic Effects at Age 40 Source: High/Scope Educational Research Foundation
  • 13. Perry: Arrested 5 or More Times Before Age 40 Source: High/Scope Educational Research Foundation
  • 14. Perry: Average Number of Months Served in Prison by Age 40 Source: High/Scope Educational Research Foundation
  • 15. Perry Preschool Costs and Benefits Over 62 Years Source: High/Scope Educational Research Foundation
  • 16.
  • 17.
  • 18. Abecedarian: Educational and Health Effects Source: Carolina Abecedarian Study
  • 19.
  • 20. Chicago Child-Parent Centers Source: Arthur Reynolds, et al.
  • 21.
  • 22. Elmira Prenatal/Early Infancy Project High-Risk Families Source: David Olds, et al.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.  
  • 28.
  • 29.

Editor's Notes

  1. Differences in development appear very early -- in this instance, differences in vocabulary growth between children in low socio-economic households and high socio-economic households begin to appear as early as 18 months. And as the children grow toward school age, and enter school, the differences only get larger in the absence of intervention.
  2. And it’s not just cognitive development that is affected by early experiences--it’s also social-emotional behaviors and physical health. This study investigated adults with a history of Adverse Childhood Experiences in early childhood to determine whether these experiences increase the odds that they would experience alcoholism, drug abuse, and a range of unhealthy behaviors later in life. Perhaps not unexpectedly, all of these behaviors increased dramatically in adults who had higher numbers and prevalence of Adverse Childhood Experiences in their early years. But this graph shows that these experiences also lead to dramatically increased odds of having a range of physical health problems as adults -- in this case, cardiovascular disease. And these trends also appeared for diabetes, hypertension, stroke, obesity, and cancer.