Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/170795 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 10811
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper quantifies the experimentally evaluated life-cycle benefits of a widely implemented early childhood program targeting disadvantaged families. We join experimental data with non-experimental data using economic models to forecast its life-cycle benefits. Our baseline estimate of the internal rate of return (benefit/cost ratio) is 13.7% (7.3). We conduct extensive sensitivity analyses to account for model estimation error, forecasting error, and judgments made about the empirical magnitudes of non-market benefits. We examine the performance of widely used, ad hoc estimates of long-term benefit/cost ratios based on short-term measures of childhood test scores and find them wanting.
Subjects: 
long-term forecasts
life-cycle benefits
early childhood education
childcare
rates of return
JEL: 
J13
I28
C93
Document Type: 
Working Paper

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