Working Paper: NBER ID: w31555
Authors: Jorge Luis Garca; Frederik H. Bennhoff; Duncan Ermini Leaf
Abstract: We demonstrate the social efficiency of investing in high-quality early childhood education using newly collected data from the HighScope Perry Preschool Project. The data analyzed are the longest follow-up of any randomized early childhood education program. Annual observations of participant outcomes up to midlife allow us to provide a cost-benefit analysis without relying on forecasts. Adult outcomes on the participants' children and siblings allow us to quantify spillover benefits. The program generates a benefit-cost ratio of 6.0 (p-value = 0.03). Spillover benefits increase this ratio to 7.5 (p-value = 0.00).
Keywords: early childhood education; cost-benefit analysis; spillover benefits; Perry Preschool Project
JEL Codes: C93; H43; I28; J13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Participation in PPP (H44) | Improved midlife outcomes (I26) |
| Participation in PPP (H44) | High school graduation rates (I21) |
| Participation in PPP (H44) | Benefit-cost ratio of 6.0 (H43) |
| Participation in PPP (H44) | Benefit-cost ratio of 7.5 (including spillover benefits) (H43) |
| Participation in PPP (H44) | Spillover benefits to male children (J13) |
| Participation in PPP (H44) | Spillover benefits to female children (J13) |
| Participation in PPP (H44) | Spillover benefits to siblings (J12) |