Big Payoff from Pre School Programs
In a major study for the Upjohn Institute, Timothy J. Bartik calulates the macro economic impacts of high quality universal preschool education for the US,Â based mainly on studies of theÂ impacts of a well-studied, high quality program (the Chicago Child-Parent Centre program, a half day program for four year olds with 2 teachers per 20 children.)
He estimates that the US economy wide return ($4 for every $1 invested in terms of the impact on the present value of real earnings)Â greatly outweighs the impact of traditional business subsidy programs (0.65 cents return per $1 spent.) The central argument is that quality preschool education raises the quantity and quality of future labour supply. He concludes that investments in “human capital” can produce significant economic returns far in excess of traditional handouts to business.
Please could someone spread the news to “Canada’s New Government”-Â Finance Minister Flaherty could surely use this in framing his productivity agenda.