The Life-Cycle Benefits of an Influential Early Childhood Program

75 Pages Posted: 10 Jan 2017

See all articles by Jorge Luis García

Jorge Luis García

Clemson University - John E. Walker Department of Economics; University of Southern California - Schaeffer Center for Health Policy and Economics

James J. Heckman

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Duncan Ermini Leaf

University of Southern California - Leonard D. Schaeffer Center for Health Policy & Economics

María Prados

University of Southern California

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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.

Keywords: childcare, early childhood education, long-term predictions, gender differences in responses to programs, health, quality of life, randomized trials, substitution bias

JEL Classification: J13, I28, C93

Suggested Citation

Garcia, Jorge Luis and Heckman, James J. and Ermini Leaf, Duncan and Prados, Maria, The Life-Cycle Benefits of an Influential Early Childhood Program. IZA Discussion Paper No. 10456, Available at SSRN: https://ssrn.com/abstract=2895304 or http://dx.doi.org/10.2139/ssrn.2895304

Jorge Luis Garcia (Contact Author)

Clemson University - John E. Walker Department of Economics ( email )

Clemson, SC 29634
United States

University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

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Los Angeles, CA 90089-3333
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James J. Heckman

University of Chicago - Department of Economics ( email )

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773-702-8490 (Fax)

National Bureau of Economic Research (NBER)

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American Bar Foundation

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Institute for the Study of Labor (IZA)

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CESifo (Center for Economic Studies and Ifo Institute)

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Duncan Ermini Leaf

University of Southern California - Leonard D. Schaeffer Center for Health Policy & Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
United States
213-821-6474 (Phone)

Maria Prados

University of Southern California ( email )

635 Downey Way
Los Angeles, CA 90089-3332
United States

HOME PAGE: http://dornsife.usc.edu/mprados/

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