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Parents' Earnings and the Returns to Universal Pre-Kindergarten

Author

Listed:
  • John Eric Humphries
  • Christopher Neilson
  • Xiaoyang Ye
  • Seth D. Zimmerman

Abstract

This paper asks whether universal pre-kindergarten (UPK) programs can increase parental earnings and, if so, how much these gains affect the economic returns to UPK. Using admissions lotteries for an extended-day UPK program in New Haven, Connecticut, we find that UPK enrollment increases childcare coverage to span the workday and raises parents’ earnings by 21.7% during pre-kindergarten. Gains persist for at least six years. We find little evidence of effects on children’s academic and behavioral outcomes during elementary and middle school. Combining these results, we demonstrate that tax revenues from parents’ earnings gains reduce the net government costs of UPK by 90% relative to estimates that ignore gains for parents. Overall, we estimate that each dollar spent yields $10 in benefits. Our findings demonstrate the potential of UPK programs that combine quality education with full-day childcare and underscore the importance of thinking about parents when designing and evaluating early-childhood policies.

Suggested Citation

  • John Eric Humphries & Christopher Neilson & Xiaoyang Ye & Seth D. Zimmerman, 2024. "Parents' Earnings and the Returns to Universal Pre-Kindergarten," NBER Working Papers 33038, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33038
    Note: CH ED LS PE
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    Cited by:

    1. Frederik Almar & Benjamin Friedrich & Ana Reynoso & Bastian Schulz & Rune Vejlin, 2025. "Families’ Career Investments and Firms’ Promotion Decisions," CESifo Working Paper Series 11659, CESifo.

    More about this item

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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