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President's Council of Economic Advisers Highlights FPG's Abecedarian Project

President's Council of Economic Advisers Highlights FPG's Abecedarian Project

September 9, 2015

The President’s Council of Economic Advisers cites FPG’s seminal Abecedarian Project in a report on short-term and long-term returns on investments in high-quality early education and care. According to The Economics of Early Childhood Investments, some benefits of early education are more immediate—such as gains in family income—while others continue on into adulthood for people who have received early education and care.

The report draws several key conclusions, including:

1. “Expanding early learning initiatives would provide benefits to society of roughly $8.60 for every $1 spent, about half of which comes from increased earnings for children when they grow up.”

2. “High-quality early education for all would narrow the achievement gap. Dozens of preschool programs have been rigorously examined since the 1960s. Overall, across all studies and time periods, early childhood education increases cognitive and achievement scores … Since higher income children are currently more likely to have access to high-quality early education, expanding access to all would narrow the achievement gap.”

3. “Early childhood education can boost children’s earnings later in life. Long-term analyses suggest that early childhood education can increase earnings in adulthood by 1.3 to 3.5 percent. These earnings gains alone are bigger than the costs of such programs.”

4. “High-quality, affordable child care can help parents balance work and family responsibilities. Studies show that providing better access to and lowering the cost of high-quality care can significantly increase mothers’ employment rates and incomes. This increase in family income has been shown to improve children’s outcomes as well.”

The report highlights FPG’s Abecedarian Project repeatedly under “Benefits of Early Childhood Education Programs for Government and Society.” According to the Council of Economic Advisers' analysis, “Abecedarian participants’ lifetime earnings increased by about $44,000, and their mothers’ lifetime earnings increased by more than $79,000.” In addition, “Abecedarian participants experienced lower rates of grade retention and special education placements… saving more than $11,000 per participant through grade 12.”

In the same section, the report outlines the effects of early childhood education on participants in Abecedarian and other projects with regard to reduced involvement with the criminal justice system: “A number of programs with long-run follow-ups… found the programs reduced juvenile arrests and criminal records of participants… Many cost-benefit analyses find that these cost savings are substantial, and often account for the single largest portion of the accrued benefits over time.”

The Economics of Early Childhood Investments reiterates the significance of early education on family life: “Despite working longer hours for pay, both mothers and fathers are also spending more time interacting with their children. Early childhood education programs can strengthen parents’ attachment to the labor force and increase their earnings potential by providing a safe and nurturing environment that furthers the education and development that parents are providing at home.”

In summarizing its findings, the report concludes that “estimated benefits to society from investing in early childhood education are large and go beyond the estimated increase in earnings for children as they become adults. While it is difficult to put a precise number on the sum total in gains to parents and society, research shows that gains that come from the benefits to children’s employment and earnings far outweigh the costs.”

More about FPG’s Abecedarian Project