Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
How Policy Makers Should Deal With the Delayed Benefits of Early C

How Policy Makers Should Deal With the Delayed Benefits of Early C

Ratings: (0)|Views: 8 |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

 
How Policymakers Should Deal with the DelayedBenefits of Early Childhood Programs
Timothy J. Bartik 
W.E. Upjohn Institute
Upjohn Institute Working Paper No. 09-150
This title is brought to you by the Upjohn Institute. For more information, please contactir@upjohn.org.
Published Version
Bartik, Timothy J. 2011. "Bringing the Future into the Present: How Policymakers Should Deal with the Delayed Benefits of Early Childhood Programs." In Investing in Kids: Early Childhood Programs and Local Economic Development. Kalamazoo, MI: W.E.Upjohn Institute for Employment Research, pp. 175-217.
Citation
Bartik, Timothy J. 2009. "How Policymakers Should Deal with the Delayed Benefits of Early Childhood Programs." Upjohn Institute Working Paper No. 09-150. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.http://research.upjohn.org/up_workingpapers/150
 
 How Policymakers Should Deal with the Delayed Benefits of Early Childhood Programs
 
Upjohn Institute Staff Working Paper 09-150
Timothy J. Bartik Senior EconomistThe W.E. Upjohn Institute for Employment Researche-mail: bartik “at” upjohn.orgJune 2009
ABSTRACT
This chapter is a draft of Chapter 7 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 accessible preschool 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-Home program, 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 a problem with early childhood programs: their effects on earnings aremostly long-delayed. The delay occurs because most earnings effects are on former child participants.The chapter considers appropriate discounting of benefits. The chapter considers how the upfront costs of early childhood programs can be delayed or reduced. The chapter considers how the long-run benefits of early childhood programs can be moved up or increased.
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.
 
 
1As discussed in Chapter 4, early childhood education programs have a different timing of economic development benefits than business incentives. Business incentives deliver sizable economicdevelopment benefits almost immediately. Jobs are attracted, which immediately increases employmentrates and upgrades many state residents to better jobs. In contrast, most benefits of early childhood programs are long delayed. There are some economic development benefits in the short term. Free childcare and other services to parents increase parental labor supply. Spending more money stimulates thestate economy. But these short-term economic development benefits are modest. During the years rightafter these programs are begun, earnings of state residents go up by only 20 to 30 percent of programcosts. Annual earnings effects of these programs do not exceed annual costs until at least 20 years later.(Figure 7.1, which reproduces Figure 4.2, shows the time pattern of effects.) These delays in benefitsoccur because so much of the benefits are due to the improved the adult labor supply of former child participants. Better child development’s benefits are only achieved in the long run.The delayed benefits from early childhood programs raise two issues. First, how should policymakers weight future benefits versus current costs? I will argue that policymakers should notdiscount future benefits too much. However, policymakers often do drastically discount or disregardsocial benefits that are in the future. This leads to the second issue. Given that policymakers discount thefuture too much, what can be done to encourage policymakers to adopt early childhood programs? Howcan we get policymakers to adopt programs that are socially beneficial but politically unattractive becausetheir benefits are delayed? Various approaches will be discussed to making such programs moreattractive. We can work on costs. Short-run costs can be postponed or reduced. Alternatively, we canwork on benefits. Long-run benefits can be shifted towards the present. Short-run benefits can beincreased.

You're Reading a Free Preview

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