Early Childhood Education

Early Childhood Education Development Strategy

Last Updated Oct 5, 2008 04:27 PM

Early Childhood Education: An Economic Development Strategy Why are economists, bankers, public officials and business leaders across the country talking about young children and their early education? Because they know that the key to business success and economic prosperity is investing wisely in human capital. The idea of early childhood education as an economic development strategy is gaining significant momentum across the country. States such as Louisiana and Pennsylvania have included early childhood education as key strategies in their economic development plans. A number of influential business groups have also come out in support of new investments in early childhood education and Business Week magazine identified universal preschool education as one of its 25 Ideas For A Changing World.Improve Economic Development by Investing in Young ChildrenIn his paper Fostering Human Capital, 2000, Nobel Laureate and University of Chicago Economics Professor James J. Heckman found, through a broad evaluation of job training programs, tax policies, school reform, and financial interventions, that high-quality early education gives children “the advantage of an early start totheir skill development improving their chances of successfully participating in the job market in later years.” Heckman recommends focusing policy-related investments on children because they are likely to result in a higher level of skill development and yield a greater rate of return. Heckman concludes that “the best evidence supports the policy prescription: Invest in the very young and improve basic learning and socialization skills.”

Art Rolnick and Rob Grunewald’s 2003 report from the Federal Reserve Bank of Minneapolis, Early Childhood Development: Economic Development with a High Public Return, challenges conventional views of economic development that, “typically include company headquarters, office towers, entertainment centers, and professional sports arenas,” and proposes that early childhood education take its place at the top of thislist. The authors find that investments in early childhood development not only yield high public as well as private returns, but also result in “better working public schools, more educated workers and less crime.” To view the full report: http://minneapolisfed.org/pubs/fedgaz/03-03/earlychild.cfmThe Trustees of the Committee for Economic Development - a national, nonpartisan organization of business and education leaders - published Preschool for All: Investing in a Productive and Just Society in 2002, calling on the business community to help build public understanding about the economic and social need for early childhood education. The Committee points out that the U.S. lags behind other industrialized nations oninvestments in early education, and while America has progressed in terms of raising standards and accountability for early childhood programs, bipartisan support of early education is lacking. The report states that “[p]oorly educated workers are increasingly unable to earn a living wage in a global marketplace whereskills matter more than ever before. Society pays in many ways for failing to take full advantage of the learning potential of all its children, from lost economic productivity and tax revenues to higher crime rates to diminished participation in the civic and cultural life of the nation.” To view the full report: http://www.ced.org/projects/prek.shtml#reportThe U.S. Business Roundtable and Corporate Voices for Working Families jointly released Early ChildhoodEducation: A Call to Action from the Business Community in 2003, stressing the need for high-quality early childhood education to “improve education and develop a world-class workforce.” These organizations conclude that high-quality early childhood education is cost-effective and pays big dividends in the long run. The report states that “[i]n today’s world, where education and skill levels determine future earnings, the economic and social costs to individuals, communities, and the nation of not taking action on early childhood education are far too great to ignore.”


400 Atlantic Avenue, Boston, MA 02110phone: 617-330-7380fax: 617-330-7381 email: info@earlyeducationforall.org website: www.earlyeducationforall.org In 2002, the Louisiana Economic Development Council task force, a non-partisan statewide organization which acts as a catalyst for improving the quality of life for all the citizens of Louisiana, authored Louisiana:Vision 2020. Based on volumes of research, the Council named universal access to high-quality early education as the most important policy initiative Louisiana could engage in as a state to improve their economic viability, increasing student achievement and breaking the cycle of poverty. Republican Governor Mike Foster said that “Pre-K is by far the most important thing” in the plan. To view the full report:http://www.lded.state.la.us/secretary/vision2020.aspDemocratic Governor Ed Rendell’s Plan for a New Pennsylvania is based on the idea that all of the state’s children deserve the opportunity to learn and that an educated citizenry is the most effective economic development tool. In introducing the plan, the Governor stated that “[i]mproving early childhood education would produce a more viable workforce.” His FY04 Economic Plan calls for an economic stimulus program, property tax cuts and three major investments in early childhood education, including an Investment Fund, Achievement Fund and “Rewarding Results” Fund. To view the full plan: http://www.state.pa.us/budget/site/default.aspScientific Research Supports InvestmentThese calls to action are based on a substantial body of scientific evidence, which demonstrates that successful early intervention in the life cycle of learning leads to higher overall achievements: Children who participate in high-quality early childhood education programs: • arrive at school with better language skills and get along better with their peers; • are 40% less likely to need special education or be held back a grade; and • are more likely to graduate from high school, go to college, and be employed. Several longitudinal studies have shown that high-quality programs for children as young as three can return more than $7 to society for every dollar initially invested in increased earning for participants and reduced costs on special education, welfare dependency, and crime. Early Childhood Education and the Future of the Massachusetts Economy The nature of our economy is shifting to industries such as high-tech and biotech that require better-educated and more highly skilled employees. Preparing tomorrow’s workforce and positioning Massachusetts for future economic growth requires making substantial improvements in children’s early learning opportunities. Early childhood education is an investment with extraordinary public returns. Research has shown that investing in early childhood education is an investment in human capital, helping to produce a supply of literate, educated, employable workers, while resulting in better working public schools, less crime, and a greater rate of return in the job market in later years. Acting on this and other evidence, An Act Establishing Early Education for All (H. 1838/ S.239), was filed at the State House on December 4, 2002 by lead sponsors Senator Fred Berry, Senate Majority Leader, and Representative Peter Larkin, Assistant Vice-Chairman of the House Committee on Ways and Means, along with 109 other members of the Legislature. The legislation was developed by the Early Education for All Campaign, a growing coalition of leaders from business, labor, religion, health care, education, child care and philanthropy, working in partnership with grassroots organizations and state policymakers to make high-quality early childhood education available to every child between the ages of three and five.

See also Early Childhood Education 443 1 - 3