Evaluating Public Programs with Close Substitutes: The Case of Head Start

84 Pages Posted: 26 Oct 2015 Last revised: 6 Mar 2023

See all articles by Patrick Kline

Patrick Kline

University of California, Berkeley - Department of Economics

Christopher Walters

University of California, Berkeley - Department of Economics

Date Written: October 2015

Abstract

This paper empirically evaluates the cost-effectiveness of Head Start, the largest early-childhood education program in the United States. Using data from the Head Start Impact Study (HSIS), we show that Head Start draws roughly a third of its participants from competing preschool programs, many of which receive public funds. Accounting for the public savings associated with reduced enrollment in other subsidized preschools substantially increases estimates of the program's rate of return. To parse Head Start's test score impacts relative to home care and competing preschools, we selection correct test scores in each care environment using excluded interactions between experimental offer status and household characteristics. We find that Head Start's effects are greater for children who would not otherwise attend preschool and for children that are less likely to participate in the program.

Suggested Citation

Kline, Patrick and Walters, Christopher, Evaluating Public Programs with Close Substitutes: The Case of Head Start (October 2015). NBER Working Paper No. w21658, Available at SSRN: https://ssrn.com/abstract=2679696

Patrick Kline (Contact Author)

University of California, Berkeley - Department of Economics ( email )

508-1 Evans Hall #3880
Berkeley, CA 94720-3880
United States

Christopher Walters

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States

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