Economic(benefits(of(ECE
Early!childhood!education!is!economic!development,!and!the!research!shows!it!is!economic!development!with!a!very!high!public!return.!!The!
economic!rationale!for!investing!in!early!childhood!programming!is!gathered!from!three!types!of!analyses:!longitudinal!data!quantifying!the!
human!capital!benefits!and!reduced!health!and!social!costs!for!children!who!attend!preschool;!economic!modelling!forecasting!the!payback!
from!the!enhanced!labour!productivity!of!working!mothers;!and!studies!examining!the!early!childhood!sector!itself!and!its!multiplier!effects!
on!economies.
• ECE(as(human(capital(development
Validation!of!the!human!capital!approach!is!heavily!influenced!by!three!U.S.!longitudinal!studies!on!the!impact!of!preschool!education!on!
children!from!disadvantaged!backgrounds.!The!participants!were!largely!AfricanGAmerican!children!deemed!to!be!atGrisk!because!of!low!
family!income,!mothers’!age,!educational!attainment!and!loneG
parent!status and!neighbourhood!livability.!
Ypsilanti’s!Perry!Preschool!(initiated!in!1962),!the!Abecedarian!
study!in!North!Carolina!(1972)!and!the!Chicago!ChildGParent!
Centers!(1967)!have!tracked!their!original!cohorts!for!up!to!four!
decades.!Each!study!was!unique,!but!all!provided!a!group!program!
emphasizing!parent!involvement!and!the!development!of!literacy!
skills.!ChildGtoGstaff!ratios!were!low!and!educators!had!university!
level!training!in!early!childhood!education.
Assessed!over!time,!the!preschool!groups!showed!greater!onGtime!
secondary!school!graduation,!higher!college!attendance,!increased!
earnings!and!more!prosocial!conduct!as!adults!compared!to!the!
control!groups.!For!children!born!to!mothers!who!never!finished!
high!school,!high!school!completion!rates!were!roughly!10!percent!
higher!and!rates of!substance!abuse!and!felony!charges!were!
roughly!10!percent!lower!than!for!children!in!the!studies!who!did!
not!attend!preschool.!The!outcomes!were!particularly!pronounced!
for!male!participants.25 No!longGterm!effect!was!found!on!the!IQ!of!
the!participants,!but!preschool!did!help!children!develop!better!
cognitive!habits!and!improved!impulse!control.
Economic(benefits(of(ECEEarly!childhood!education!is!economic!development,!and!the!research!shows!it!is!economic!development!with!a!very!high!public!return.!!The!economic!rationale!for!investing!in!early!childhood!programming!is!gathered!from!three!types!of!analyses:!longitudinal!data!quantifying!the!human!capital!benefits!and!reduced!health!and!social!costs!for!children!who!attend!preschool;!economic!modelling!forecasting!the!payback!from!the!enhanced!labour!productivity!of!working!mothers;!and!studies!examining!the!early!childhood!sector!itself!and!its!multiplier!effects!on!economies.• ECE(as(human(capital(developmentValidation!of!the!human!capital!approach!is!heavily!influenced!by!three!U.S.!longitudinal!studies!on!the!impact!of!preschool!education!on!children!from!disadvantaged!backgrounds.!The!participants!were!largely!AfricanGAmerican!children!deemed!to!be!atGrisk!because!of!low!family!income,!mothers’!age,!educational!attainment!and!loneGparent!status and!neighbourhood!livability.!Ypsilanti’s!Perry!Preschool!(initiated!in!1962),!the!Abecedarian!study!in!North!Carolina!(1972)!and!the!Chicago!ChildGParent!Centers!(1967)!have!tracked!their!original!cohorts!for!up!to!four!decades.!Each!study!was!unique,!but!all!provided!a!group!program!emphasizing!parent!involvement!and!the!development!of!literacy!skills.!ChildGtoGstaff!ratios!were!low!and!educators!had!university!level!training!in!early!childhood!education.Assessed!over!time,!the!preschool!groups!showed!greater!onGtime!secondary!school!graduation,!higher!college!attendance,!increased!earnings!and!more!prosocial!conduct!as!adults!compared!to!the!control!groups.!For!children!born!to!mothers!who!never!finished!high!school,!high!school!completion!rates!were!roughly!10!percent!higher!and!rates of!substance!abuse!and!felony!charges!were!roughly!10!percent!lower!than!for!children!in!the!studies!who!did!not!attend!preschool.!The!outcomes!were!particularly!pronounced!for!male!participants.25 No!longGterm!effect!was!found!on!the!IQ!of!the!participants,!but!preschool!did!help!children!develop!better!cognitive!habits!and!improved!impulse!control.
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