IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/22993.html
   My bibliography  Save this paper

The Life-cycle Benefits of an Influential Early Childhood Program

Author

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

Abstract

This paper estimates the long-term benefits from an influential early childhood program targeting disadvantaged families. The program was evaluated by random assignment and followed participants through their mid-30s. It has substantial beneficial impacts on health, children's future labor incomes, crime, education, and mothers' labor incomes, with greater monetized benefits for males. Lifetime returns are estimated by pooling multiple data sets using testable economic models. The overall rate of return is 13.7% per annum, and the benefit/cost ratio is 7.3. These estimates are robust to numerous sensitivity analyses.

Suggested Citation

  • Jorge Luis García & James J. Heckman & Duncan Ermini Leaf & María José Prados, 2016. "The Life-cycle Benefits of an Influential Early Childhood Program," NBER Working Papers 22993, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22993
    Note: CH ED
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w22993.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Lagakos & Benjamin Moll & Tommaso Porzio & Nancy Qian & Todd Schoellman, 2018. "Life Cycle Wage Growth across Countries," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 797-849.
    2. Janet Currie, 2011. "Inequality at Birth: Some Causes and Consequences," American Economic Review, American Economic Association, vol. 101(3), pages 1-22, May.
    3. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    4. Patrick Kline & Christopher R. Walters, 2016. "Evaluating Public Programs with Close Substitutes: The Case of HeadStart," The Quarterly Journal of Economics, Oxford University Press, vol. 131(4), pages 1795-1848.
    5. Blundell, Richard & Graber, Michael & Mogstad, Magne, 2015. "Labor income dynamics and the insurance from taxes, transfers, and the family," Journal of Public Economics, Elsevier, vol. 127(C), pages 58-73.
    6. Heckman, James & Pinto, Rodrigo, 2015. "Causal Analysis After Haavelmo," Econometric Theory, Cambridge University Press, vol. 31(1), pages 115-151, February.
    7. James Heckman & Neil Hohmann & Jeffrey Smith & Michael Khoo, 2000. "Substitution and Dropout Bias in Social Experiments: A Study of an Influential Social Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 651-694.
    8. Carl Sanders & Christopher Taber, 2012. "Life-Cycle Wage Growth and Heterogeneous Human Capital," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 399-425, July.
    9. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, May.
    10. James Heckman & Rodrigo Pinto & Peter Savelyev, 2013. "Understanding the Mechanisms through Which an Influential Early Childhood Program Boosted Adult Outcomes," American Economic Review, American Economic Association, vol. 103(6), pages 2052-2086, October.
    11. David Autor & David Figlio & Krzysztof Karbownik & Jeffrey Roth & Melanie Wasserman, 2019. "Family Disadvantage and the Gender Gap in Behavioral and Educational Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 11(3), pages 338-381, July.
    12. James Heckman & Salvador Navarro-Lozano, 2004. "Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 30-57, February.
    13. Martin Feldstein, 1999. "Tax Avoidance And The Deadweight Loss Of The Income Tax," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 674-680, November.
    14. David H. Autor & David N. Figlio & Krzysztof Karbownik & Jeffrey Roth & Melanie Wasserman, 2016. "Family Disadvantage and the Gender Gap in Behavioral and Educational Outcomes," CESifo Working Paper Series 5925, CESifo.
    15. Clive R Belfield & Milagros Nores & Steve Barnett & Lawrence Schweinhart, 2006. "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. 41(1).
    16. Greg J. Duncan & Aaron J. Sojourner, 2013. "Can Intensive Early Childhood Intervention Programs Eliminate Income-Based Cognitive and Achievement Gaps?," Journal of Human Resources, University of Wisconsin Press, vol. 48(4), pages 945-968.
    17. Barnett, W.S. & Masse, Leonard N., 2007. "Comparative benefit-cost analysis of the Abecedarian program and its policy implications," Economics of Education Review, Elsevier, vol. 26(1), pages 113-125, February.
    18. Michael Baker & Jonathan Gruber & Kevin Milligan, 2015. "Non-Cognitive Deficits and Young Adult Outcomes: The Long-Run Impacts of a Universal Child Care Program," NBER Working Papers 21571, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Life-cycle Benefits of an Influential Early Childhood Program
      by maximorossi in NEP-LTV blog on 2017-02-07 23:36:29
    2. The Life-cycle Benefits of an Influential Early Childhood Program
      by maximorossi in NEP-LTV blog on 2017-03-31 18:11:48

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joseph P. Newhouse, 2020. "An Ounce of Prevention," NBER Working Papers 27553, National Bureau of Economic Research, Inc.
    2. Lastra-Anadón, Carlos & Muñiz, Manuel Antonio, 2017. "Technological change, inequality and the collapse of the liberal order," Economics Discussion Papers 2017-43, Kiel Institute for the World Economy (IfW).
    3. Chao Fu & Nicolás Grau & Jorge Rivera, 2020. "Wandering Astray: Teenagers' Choices of Schooling and Crime," NBER Working Papers 26858, National Bureau of Economic Research, Inc.
    4. Gabriella Conti & Giacomo Mason & Stavros Poupakis, 2019. "Developmental origins of health inequality," IFS Working Papers W19/17, Institute for Fiscal Studies.
    5. Flèche, Sarah & Lekfuangfu, Warn N. & Clark, Andrew E., 2021. "The long-lasting effects of family and childhood on adult wellbeing: Evidence from British cohort data," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 290-311.
    6. Nores, Milagros & Bernal, Raquel & Barnett, W. Steven, 2019. "Center-based care for infants and toddlers: The aeioTU randomized trial," Economics of Education Review, Elsevier, vol. 72(C), pages 30-43.
    7. Ramon Flecha, 2020. "Contributions from Social Theory to Sustainability for All," Sustainability, MDPI, Open Access Journal, vol. 12(23), pages 1-11, November.
    8. Wisuwat Chujan & Weerachart T. Kilenthong, 2019. "An Early Evaluation of a HighScope-Based Curriculum Intervention in Rural Thailand," PIER Discussion Papers 103, Puey Ungphakorn Institute for Economic Research, revised Jan 2019.
    9. García, Jorge Luis & Heckman, James J. & Ziff, Anna L., 2018. "Gender differences in the benefits of an influential early childhood program," European Economic Review, Elsevier, vol. 109(C), pages 9-22.
    10. Daniela Del Boca & Chiara Monfardini & Sarah Grace See, 2017. "Government education expenditures, pre-primary education and school performance: A cross-country analysis," CHILD Working Papers Series 61 JEL Classification: J1, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    11. Jens Dietrichson & Ida Lykke Kristiansen & Bjørn A. Viinholt, 2020. "Universal Preschool Programs And Long‐Term Child Outcomes: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1007-1043, December.
    12. Shelley Clark & Caroline W. Kabiru & Sonia Laszlo & Stella Muthuri, 2019. "The Impact of Childcare on Poor Urban Women’s Economic Empowerment in Africa," Demography, Springer;Population Association of America (PAA), vol. 56(4), pages 1247-1272, August.
    13. Víctor Giménez & Claudio Thieme & Diego Prior & Emili Tortosa-Ausina, 2020. "Evaluation and determinants of pre-school effectiveness in Chile," Working Papers 2020/02, Economics Department, Universitat Jaume I, Castellón (Spain).
    14. Diego Daruich, 2017. "From Childhood to Adult Inequality: Parental Investments and Early Childhood Development," 2017 Meeting Papers 770, Society for Economic Dynamics.
    15. Charle Augusto Londoño Henao, 2020. "Cost-Efficiency Index of the Development Plan of Medellín, 2015," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 335-367, November.
    16. Hélène Périvier & Réjane Sénac, 2018. "The new spirit of neoliberalism: equality and economic prosperity," Sciences Po publications info:hdl:2441/14c56gh1hq9, Sciences Po.
    17. Hélène Périvier & Réjane Sénac, 2018. "The new spirit of neoliberalism: equality and economic prosperity," Post-Print hal-02403971, HAL.
    18. Wisuwat Chujan & Weerachart T. Kilenthong, 2019. "Short-term Impact of an Early Childhood Curriculum Intervention in Rural Thailand," Working Papers 2019-077, Human Capital and Economic Opportunity Working Group.
    19. Emily Moschini, 2019. "Child Care Subsidies with One- and Two-Parent Families," 2019 Meeting Papers 42, Society for Economic Dynamics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jorge Luis García & James J. Heckman & Duncan Ermini Leaf & María José Prados, 2020. "Quantifying the Life-Cycle Benefits of an Influential Early-Childhood Program," Journal of Political Economy, University of Chicago Press, vol. 128(7), pages 2502-2541.
    2. 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.
    3. García, Jorge Luis & Heckman, James J. & Ziff, Anna L., 2018. "Gender differences in the benefits of an influential early childhood program," European Economic Review, Elsevier, vol. 109(C), pages 9-22.
    4. Sneha Elango & Jorge Luis García & James J. Heckman & Andrés Hojman, 2015. "Early Childhood Education," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 235-297, National Bureau of Economic Research, Inc.
    5. Morabito, Christian & Van de gaer, Dirk & Figueroa, José Luis & Vandenbroeck, Michel, 2018. "Effects of high versus low-quality preschool education: A longitudinal study in Mauritius," Economics of Education Review, Elsevier, vol. 65(C), pages 126-137.
    6. Juan Chaparro & Aaron Sojourner & Matthew J. Wiswall, 2020. "Early Childhood Care and Cognitive Development," NBER Working Papers 26813, National Bureau of Economic Research, Inc.
    7. Michael J. Kottelenberg & Steven F. Lehrer, 2018. "Does Quebec’s subsidized child care policy give boys and girls an equal start?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(2), pages 627-659, May.
    8. Magnac, Thierry & Roux, Sébastien, 2021. "Heterogeneity and wage inequalities over the life cycle," European Economic Review, Elsevier, vol. 134(C).
    9. Heckman, James J. & Humphries, John Eric & Veramendi, Gregory, 2016. "Dynamic treatment effects," Journal of Econometrics, Elsevier, vol. 191(2), pages 276-292.
    10. Fan, Yi, 2020. "Does adversity affect long-term financial behaviour? Evidence from China’s rustication programme," Journal of Urban Economics, Elsevier, vol. 115(C).
    11. 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.
    12. Aucejo, Esteban & James, Jonathan, 2018. "Catching Up to Girls: Understanding the Gender Imbalance in Educational Attainment Within Race," CEPR Discussion Papers 13123, C.E.P.R. Discussion Papers.
    13. repec:clr:wugarc:y:2016v:42i:04p:617 is not listed on IDEAS
    14. Michael J. Kottelenberg & Steven F. Lehrer, 2017. "Targeted or Universal Coverage? Assessing Heterogeneity in the Effects of Universal Child Care," Journal of Labor Economics, University of Chicago Press, vol. 35(3), pages 609-653.
    15. Maite D. Laméris & Harry Garretsen & Richard Jong-A-Pin, 2018. "Political Ideology and the Intragenerational Prospect of Upward Mobility," CESifo Working Paper Series 6987, CESifo.
    16. Sandner, Malte & Jungmann, Tanja, 2017. "Gender-specific effects of early childhood intervention: Evidence from a randomized controlled trial," Labour Economics, Elsevier, vol. 45(C), pages 59-78.
    17. Rosario Aldunate, 2019. "Returns to Work Experience in Chile," Working Papers Central Bank of Chile 855, Central Bank of Chile.
    18. Vladimir Gimpelson, 2019. "Age and Wage: Stylized Facts and Russian Evidence," HSE Economic Journal, National Research University Higher School of Economics, vol. 23(2), pages 185-237.
    19. P. Lovaglio & S. Verzillo, 2016. "Heterogeneous economic returns to higher education: evidence from Italy," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(2), pages 791-822, March.
    20. Donna Gilleskie & Euna Han & Edward Norton, 2017. "Disentangling the Contemporaneous and Dynamic Effects of Human and Health Capital on Wages over the Life Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 25, pages 350-383, April.
    21. Denis Fougere & Arthur Heim, 2019. "L'évaluation socioéconomique de l'investissement social: Comment mettre en oeuvre des analyses coûts-bénéfices pour les politiques d'emploi, de santé et d'éducation," Sciences Po publications info:hdl:2441/5lge9h8e809, Sciences Po.

    More about this item

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:22993. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.