Updating the economic impacts of the highscope perry preschool program
For example, as shown, increased labor force participation and earnings in adulthood benefit the government by yielding increased tax revenue, but the increased earnings (net of taxes) are also a benefit to the program participant. Table 2 shows the age at last follow-up for each program, followed by data on program costs, total program benefits, and net program benefits (benefits minus costs).
The final column shows the benefit-cost ratio for each program, calculated by dividing total program benefits by program costs.
(2012) Adult outcomes as a function of an early childhood educational program: An Abecedarian Project follow-up.
A New cost-benefit and rate of return analysis for the Perry Preschool Program: A Summary.
Second, some of the variation in benefit-cost ratios results from differences in the length of follow-up for the program evaluations and the range of outcomes measured in the evaluations.Seven of the nine analyses found benefit-cost ratios greater than 1, implying that the benefits outweighed the costs, with a range between and in benefits for every dollar invested.However, even for those programs with positive net benefits to society as a whole, when viewed from the government's perspective, not all programs generate net savings sufficient to offset a full public sector investment in program delivery.Perhaps the most widely recognized intersection between economics and early childhood policy is the analysis of the costs and benefits of early childhood programs and related analyses that describe the rate of return on investments in early childhood programs.The fundamental insight of economics is manifested in a growing body of program evaluations that shows that early childhood programs can generate government savings that more than repay their costs and produce returns to society that outpace most public and private investments.