New research reveals that despite hefty up-front costs, quality child care programs for disadvantaged children starting just after birth and continuing to age five produce major financial dividends over the long term.
Such programs yield an annual return of 13 percent per child — generating $6.30 for every $1 initially invested in the program, according to the research by University of Chicago economist James Heckman.
The rate of return, which Heckman described as “huge,” is significantly higher than the 7 to 10 percent rate he found in previous research focusing just on the impact of preschool.
“We think this is very strong evidence for supporting this kind of program going forward,” Heckman said during a media briefing Thursday.
The study, released Monday, was authored by Heckman and other researchers from the University of Chicago and the University of Southern California. Heckman is known for his groundbreaking research on the economics of early childhood education.
With many cities and states focused on the expansion of full-day kindergarten or preschool in recent years, the new findings bolster arguments for early childhood investments that also cover kids’ first three years.