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The Rate of Return to the High/Scope Perry Preschool Program

Author

Listed:
  • Heckman, James J.

    (University of Chicago)

  • Moon, Seong Hyeok

    (University of Chicago)

  • Pinto, Rodrigo

    (University of California, Los Angeles)

  • Savelyev, Peter A.

    (Virginia Commonwealth University)

  • Yavitz, Adam

    (University of Chicago)

Abstract

This paper estimates the rate of return to the High/Scope Perry Preschool Program, an early intervention program targeted toward disadvantaged African-American youth. Estimates of the rate of return to the Perry program are widely cited to support the claim of substantial economic benefits from preschool education programs. Previous studies of the rate of return to this program ignore the compromises that occurred in the randomization protocol. They do not report standard errors. The rates of return estimated in this paper account for these factors. We conduct an extensive analysis of sensitivity to alternative plausible assumptions. Estimated social rates of return generally fall between 7-10 percent, with most estimates substantially lower than those previously reported in the literature. However, returns are generally statistically significantly different from zero for both males and females and are above the historical return on equity. Estimated benefit-to-cost ratios support this conclusion.

Suggested Citation

  • Heckman, James J. & Moon, Seong Hyeok & Pinto, Rodrigo & Savelyev, Peter A. & Yavitz, Adam, 2009. "The Rate of Return to the High/Scope Perry Preschool Program," IZA Discussion Papers 4533, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp4533
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    References listed on IDEAS

    as
    1. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
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    5. Anderson, David A, 1999. "The Aggregate Burden of Crime," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 611-642, October.
    6. Anderson, Patricia M. & Meyer, Bruce D., 2000. "The effects of the unemployment insurance payroll tax on wages, employment, claims and denials," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 81-106, October.
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    9. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
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    18. Clive R. Belfield & Milagros Nores & Steve Barnett & Lawrence Schweinhart, 2021. "Corrigendum to “The High/Scope Perry Preschool Program: Cost–Benefit Analysis Using Data from the Age–40 Followup”," Journal of Human Resources, University of Wisconsin Press, vol. 56(3), pages 969-969.
    19. Barnett, W. Steven & Masse, Leonard N., 2007. "Erratum to: "Comparative benefit-cost analysis of the Abecedarian program and its policy implications": [Econ. Educ. Rev. 26 (2007) 113-125]," Economics of Education Review, Elsevier, vol. 26(3), pages 395-396, June.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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