Through the Eyes of an Economist

“Policies that seek to remedy deficits incurred in early years are much more costly than early investments wisely made”

                                 --James Heckman , University of Chicago Nobel Laureate Economist

The Federal Reserve Bank and other economists contend that no public investment provides a greater return than the support of early childhood education and development.  While projections of the long-term returns on investment for high quality early education programs are clear and convincing, equally compelling research links prekindergarten to more immediate savings including reduced expenditures for remedial education and fewer unnecessary referrals to special education programs.  A recent study conducted by the Bush School of Government and Public Policy at Texas A&M University concluded that, even under very conservative assumptions, the benefits of voluntary, high-quality pre-kindergarten in Texas greatly outweighs the cost, and for every $1.00 invested, at least $3.50 is returned to Texas communities.

Today’s global economy demands a more highly skilled and educated workforce; however, more than 20% of U.S. workers are functionally illiterate and innumerate.  As a result, economists are not just speaking out in support of this issue, but are teaming up with business leaders, foundations, education institutions and other stakeholders to inform and develop public policy that supports children and boosts our economy simultaneously. 

In Texas, more than 1 in 5 children are growing up in poverty.  Education is the key to economic development and quality pre-kindergarten is the key to educational success for all children, particularly those living in poverty.  Children who participate in high quality early education programs are better prepared for school and less likely to drop out.  High quality programs including Child Care, Head Start, and Pre-k play an essential role in ensuring that children develop to their full potential, enter school ready to succeed, and stay safe while their parents are at work.

Helpful Tools:

A Cost Benefit Analysis of Universally Accessible Prekindergarten Education in Texas

Fact Sheet: Cost-Benefit Summary of Investing in High Quality Early Childhood Education Programs

Recent Research and Resources Outlining the Economic Benefits of Investing in Early Childhood Education

The Economic Impact of the Child Care Industry in Texas

Public Funding of Childcare Services: Subsidy or Human Capital Investment? An economic impact study conducted in San Antonio

Linking Economic Development and Child Care  

New Initiatives:

The Partnership for America’s Economic Success

Early Childhood Research Collaborative

Relevant Events:

Parents as Teachers National Pre-Conference Event March 31 in St. Louis, MO.  For more information, visit http://www.parentsasteachers.org