Economics of Early Education
Title
Economics of Early Education
Author
Steven Barnett, W.
Research Area
Social Institutions
Topic
Educational Institutions
Abstract
Economic research has established that public investments in early childhood programs providing education can yield high rates of return. A substantial portion of these returns are spillover effects that benefit society generally but not the child and family creating a classic instance of market failure. Benefits include improvements in school progress and achievement, health and health behaviors, social behavior, and employment and earnings for children and improvements in maternal employment and career paths. The weight of the evidence indicates that disadvantaged children benefit more than others. While programs can produce benefits from increased maternal employment (child care function) as well as from improved child development (education function), child development benefits look to be the larger part of the potential gain. Studies of large‐scale public policies and programs find much smaller benefits indicating that there may be substantial government failure in putting this knowledge into practice. One point that is immediately obvious is that public programs often fail to replicate the successful programs from research because government funds them inadequately. However, this is not the only problem as the costs and benefits of programs depend on the details of policy and program design and implementation. These details are not all well understood. Recent research has provided some insights, but has by no means answered all the key questions definitively. Key issues for further research include the advantages and disadvantages of means‐tested v. universal programs, and the nature and size of investments that are most productive at each age.