Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Distributional Effects of Early Childhood Programs and Business I (2)

Distributional Effects of Early Childhood Programs and Business I (2)

Ratings: (0)|Views: 2|Likes:
Published by vmeeder
Dr. Bartik’s research focuses on state and local economic development
and local labor markets, including research in the following areas:
evaluating economic development programs, how investment in early
childhood programs affects local economies, the benefits of higher
education institutions for local economic development, and alternative
policies for increasing labor demand for the poor.
Dr. Bartik’s research focuses on state and local economic development
and local labor markets, including research in the following areas:
evaluating economic development programs, how investment in early
childhood programs affects local economies, the benefits of higher
education institutions for local economic development, and alternative
policies for increasing labor demand for the poor.

More info:

Published by: vmeeder on Aug 05, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

08/05/2011

pdf

text

original

 
Distributional Effects of Early Childhood Programsand Business Incentives and Their Implications forPolicy 
Timothy J. Bartik 
W.E. Upjohn Institute
Upjohn Institute Working Paper No. 09-151
This title is brought to you by the Upjohn Institute. For more information, please contactir@upjohn.org.
Published Version
Bartik, Timothy J. 2011. "Who Benefits? Distributional Effects of Early Childhood Programs and Business Incentives, and TheirImplications for Policy." In Investing in Kids: Early Childhood Programs and Local Economic Development. Kalamazoo, MI: W.E.Upjohn Institute for Employment Research, pp. 219-266.
Citation
Bartik, Timothy J. 2009. "Distributional Effects of Early Childhood Programs and Business Incentives and Their Implications forPolicy." Upjohn Institute Working Paper No. 09-151. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.http://research.upjohn.org/up_workingpapers/151
 
 
 Distributional Effects of Early Childhood Programs and Business Incentives and Their Implications for Policy
Upjohn Institute Staff Working Paper 09-151
Timothy J. Bartik Senior EconomistThe W.E. Upjohn Institute for Employment Researche-mail: bartik “at” upjohn.orgJuly 2009
ABSTRACT
This paper is a draft of Chapter 8 of a planned book,
Preschool and Jobs: Human Development as Economic Development, and Vice Versa
. This book analyzes early childhood programs’ effects onregional economic development. Four early childhood programs are considered: 1) universally accessiblepreschool for four-year-olds of similar quality to the Chicago Child Parent Center program; 2) theAbecedarian program, which provides disadvantaged children with high-quality child care and preschoolfrom infancy to age five; 3) the Nurse Family Partnership, which provides low-income first-time motherswith nurse home visitors from the prenatal period until the child is age two; and 4) the Parent Child-Homeprogram, which provides home visits and educational toys and books to disadvantaged families when thechild is between the ages of 2 and 3.The book considers the main benefit of state economic development to be the resulting increasein earnings of the original residents who stay in that state. Early childhood programs increase residents’earnings largely by increasing the quantity and quality of local labor supply. These programs will increasethe employability and wages of former child participants in these programs. The book compares theeffects on local earnings of early childhood programs with the effects of business incentives (e.g.,property tax abatements). Business incentives increase local residents’ earnings by increasing the quantityand/or quality of local labor demand.This chapter considers the effects of early childhood programs and business incentives on theincome distribution. A key issue is whether early childhood programs should be targeted on the poor, ormade universally available for free. Relevant considerations in addressing this issue include how benefitsof early childhood programs benefit with family income, and the political feasibility of targeted versusuniversal programs.
JEL Classification Codes
: J13, J24, I21, R23, R31, R30I thank Wei-Jang Huang, Claire Black, and Linda Richer for assistance with this book. I alsothank the Pew Charitable Trusts for financial assistance for some of the research that led to this book. Thefindings and opinions of this book are those of the author, and should not be construed as reflectingofficial views of Pew or the Upjohn Institute.
 
 
1How do early childhood programs affect the poor versus the middle class versus the rich? Theanswer to this question is important for several reasons.First, effects on different income groups may change these programs’ social benefits. In thisdiscussion, I assume, without providing extensive justification, that programs that tilt benefits toward thepoor are more socially desirable. Policymakers, policy analysts, and voters may favor such a tilt becauseof special concern for alleviating the problems of the poor. Alternatively, policymakers, policy analystsand voters may be concerned with making the income distribution more equal. A more equal incomedistribution may increase the number of people who can meet social standards for being a respectablemember of society. Concern over the income distribution may be greater at present because over the last30 years the U.S. income distribution has become more unequal. To address concerns about the poor, weneed information on whether early childhood programs significantly affect the incomes of the poor. Toaddress concerns about the income distribution, we need information about how the effects on the poorcompare with effects on other income groups.
1
 Second, how early childhood programs affect various income groups may influence whichincome groups will provide these programs with political support. An income group is less likely tosupport a program as the program’s taxes increase relative to the program’s benefits. Assessing patternsof political support requires comparing the program’s benefits with taxes for different income groups.Adopting and sustaining a program requires political support that is sufficiently powerful.Third, how a program affects different income groups may influence program design. For earlychildhood programs, one important design issue is whether these programs should be targeted at childrenin lower income groups, or whether services should be universally available to all children. This is mostprominently an issue for preschool programs. The targeting versus universal service debate is advancedby looking at specific numbers for how programs benefit different income groups under different designs.To frame this chapter’s discussion, I begin with arguments for targeting preschool services on thepoor versus universalizing preschool. I then consider the effects on different income groups of business

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->