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Quantifying the Life-cycle Benefits of a Prototypical Early Childhood Program

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  • Jorge Luis García
  • James J. Heckman
  • Duncan Ermini Leaf
  • María José Prados

Abstract

This paper quantifies and aggregates the multiple lifetime benefits of an influential high-quality early childhood program with outcomes measured through midlife. Guided by economic theory, we supplement experimental data with non-experimental data to forecast the life-cycle benefits and costs of the program. Our point estimate of the internal rate of return is 13.7% with an associated benefit/cost ratio of 7.3. We account for model estimation and forecasting error and present estimates from extensive sensitivity analyses. This paper is a template for synthesizing experimental and non-experimental data using economic theory to estimate the long-run life-cycle benefits of social programs.

Suggested Citation

  • Jorge Luis García & James J. Heckman & Duncan Ermini Leaf & María José Prados, 2017. "Quantifying the Life-cycle Benefits of a Prototypical Early Childhood Program," NBER Working Papers 23479, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23479
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    Cited by:

    1. Jun Hyung Kim, 2018. "The Economics of Parenting Skill and Child Development," 2018 Papers pki542, Job Market Papers.
    2. Adam M. Lavecchia & Philip Oreopoulos & Robert S. Brown, 2020. "Long-Run Effects from Comprehensive Student Support: Evidence from Pathways to Education," American Economic Review: Insights, American Economic Association, vol. 2(2), pages 209-224, June.
    3. Shuang Yang, 2021. "The Long-Run Effects of Early Childhood Education and Care—An Empirical Analysis Based on the China Family Panel Studies Survey," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(5), pages 2021-2044, October.
    4. Manudeep Bhuller & Gordon B. Dahl & Katrine V. Løken & Magne Mogstad, 2020. "Incarceration, Recidivism, and Employment," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1269-1324.
    5. Jessica H. Brown, 2018. "Does Public Pre-K Have Unintended Consequences on the Child Care Market for Infants and Toddlers?," Working Papers 626, Princeton University, Department of Economics, Industrial Relations Section..
    6. Diego Daruich, 2017. "From Childhood to Adult Inequality: Parental Investments and Early Childhood Development," 2017 Meeting Papers 770, Society for Economic Dynamics.
    7. Stanley Fischer, 2017. "Government Policy and Labor Productivity : a speech at the \"Washington Transformation? Politics, Policies, Prospects,\" a forum sponsored by the Summer Institute of Martha’s Vineyard Hebrew," Speech 962, Board of Governors of the Federal Reserve System (U.S.).
    8. Drew M. Anderson & Katharine M. Broton & Sara Goldrick‐Rab & Robert Kelchen, 2020. "Experimental Evidence on the Impacts of Need‐Based Financial Aid: Longitudinal Assessment of the Wisconsin Scholars Grant," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(3), pages 720-739, June.
    9. Diego Daruich, 2018. "The Macroeconomic Consequences of Early Childhood Development Policies," Working Papers 2018-010, Human Capital and Economic Opportunity Working Group.
    10. Natalie Bau & Martin Rotemberg & Manisha Shah & Bryce Steinberg, 2020. "Human Capital Investment in the Presence of Child Labor," NBER Working Papers 27241, National Bureau of Economic Research, Inc.
    11. Jinyoung Kim & Cyn‐Young Park, 2020. "Education, skill training, and lifelong learning in the era of technological revolution: a review," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 34(2), pages 3-19, November.

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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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