Working Paper: NBER ID: w13016
Authors: James J. Heckman; Dimitriy V. Masterov
Abstract: This paper presents a productivity argument for investing in disadvantaged young children. For such investment, there is no equity-efficiency tradeoff.
Keywords: early childhood interventions; disadvantaged children; productivity; social outcomes; economic returns
JEL Codes: H52; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Investing in disadvantaged young children (I24) | Improved productivity for society at large (O49) |
| Early interventions can reverse the adverse effects of disadvantage (I24) | Benefits for children and future offspring and society (J13) |
| Early childhood interventions (J13) | Reduced likelihood of committing crimes and dropping out of school (I21) |
| Early interventions (I24) | Cumulative improvements in cognitive and noncognitive abilities (D29) |
| Early interventions yield higher rates of return compared to later interventions (H43) | Substantial returns on investment in early childhood (I26) |
| Economic returns of early childhood education programs are high (I26) | Return of 16% for participants and 12% for society (I26) |
| Perry Preschool Program (I21) | Significantly fewer lifetime arrests compared to a control group (J79) |