The economic development benefits of high-quality early childhood programs are similar in magnitude to the benefits of well-designed business tax incentives, according to the research of Dr. Tim Bartik. Dr. Bartik, senior economist at the Upjohn Institute and author of Investing in Kids: Early Childhood Programs and Local Economic Development, has found that for every dollar invested in high-quality early childhood programs, the present value of local per capita earnings increases by $2 to $3.
In a presentation to the First Steps Commission last month, Dr. Bartik refuted some of the most common arguments of skeptics who question the value of public investments in quality preschool, child care and home visitation programs that improve parenting skills.
First, to those who doubt the validity of the research, Dr. Bartik says these programs “have far more rigorous evidence for success” than just about any other public investment. Why? Early childhood programs have better comparison groups since access is limited. Researchers can compare the test scores, graduation rates, or adult earnings of people who were in a quality preschool program with those who were not. However, as Dr. Bartik points out, they can’t do that for 3rd grade since everyone attends.
One of the big arguments of skeptics is that the benefits of early childhood programs fade as children progress through the K-12 school system. However, the research shows that even when there is no measurable impact on test scores in middle and high school, participants of quality early childhood programs are more likely to graduate from high school and go to college and earn more as adults. Dr. Bartik believes that is due to the development of soft skills – social and character skills such as how to get along with peers and teachers, self-confidence, and the ability to plan.
“Both soft skills and hard skills build on themselves. The kid who goes through preschool and is developing better soft skills and hard skills has more self-confidence. They’re going to be more successful in kindergarten. That’s reinforcing. That builds soft skills and hard skills. You go on to first grade more successful, again this whole cycle is self-augmenting.”
Dr. Bartik also rebuts the argument that there are only long-term – not short-term –benefits. Early childhood investments lead to short-term cost savings due to reduced need for special education and remedial education in the K-12 system. And even more important in Dr. Bartik’s view, is the boost to local property values.
“We know that higher educational quality attracts parents which will both provide additional local labor supply immediately and will also raise property values.”
How much is the increase? Based on the known effects of preschool on 3rd grade test scores and the known effects of 3rd grade test scores on property values, Dr. Bartik concludes the increase is about $13 for every $1 invested in early childhood programs.
Despite the compelling research, Michigan still falls far short of many other states in providing access to quality early education. For instance, only 16% of four year olds attend state-subsidized preschool, compared to a national average of 27% and a high of 71% in Oklahoma. Dr. Bartik argues that the state should make preschool universally accessible for all families as well as offer a variety of additional intensive programs for disadvantaged children.
“If we care about local economic development, investing in early childhood programs is one of the ways of achieving economic development goals that has the highest bang for the buck.”
Click on the link for information on Dr. Bartik’s book Investing in Kids: Early Childhood Programs and Local Economic Development.
Click on the link to download the transcript of his July 14, 2011 Presentation to First Steps Commission.
Submitted August 9, 2011