A Benefit Cost Analysisof

Early Childhood Intervention

A Benefit Cost Analysisof

Early Childhood Intervention

By Jenny YaillenAnd Nate Blair

Overview• Literature Review

– Previous interventions– Neuroscience

• Benefits

• Costs

• Q & A

Lit Review• Abecedarian Program

– 1972-1985 in North Carolina– Very intensive, costly program– Curriculum focus: language– Early success in IQ improvements– Benefits > Costs, – Rate of return: 3 to 7%?

Lit Review• Perry Preschool Project

– 1962-1967 in Michigan– Less intensive, but high quality– Curriculum focus: planning skills, natural play– Large benefits from reduced crime– B > C, Rate of return: 16%

Lit Review• Chicago Child Parent Centers

– 1967-present– Large scale program– Curriculum: reading/math skills– 3 different programs: preschool yielded highest

returns– B > C, Rate of return: 18%

Lit Review• Head Start

– 1965-present– Federally and state funded– Curriculum: language, social skills– Significant long term benefits– People believe B>C, but hard to measure

Summary of Intervention Benefits

Program focus Short Run Medium Run Long Run Estimated Rate of Return

Abecedarian1972-1985N=117

Full-day programCognitionFine motor skillsSocial developmentLanguage

IQReading/math skillsMaternal employment &earnings

IQGrade retentionSpecial education

High school completionCollege enrollmentHealth (smoking)

7%

Perry Preschool1962-1967N=123

Half-day programBased on children’s natural playPlanning skills

IQLanguageBehavior

IQSpecial educationJuvenile delinquencyTeen pregnancyAcademic achievement

EmploymentHigh school completionArrestsIncomeWelfare use

16%

Chicago CPC1967-presentN=1539

Half-day programBasic language and math skills

Reading/math skills Grade retentionSpecial educationCrime/delinquency

High school completionArrests

18%

Head Start (retrospective analysis using PSID)1965-presentN=4000

Half-day programLearning skillsSocial skillsHealth status

Vocabulary Academic performance(vocabulary tests)Grade retentionImmunizationHeight

High school completionCollege enrollmentIncomeCriminal activity

Evidence from Neuroscience

• Neuroscience is not part of the design or evaluation of existing programs, but, it’s what’s happening!

• Brain development– Synaptic pruning– High plasticity– Durability

• Compounding experiences– “Learners learn and skill begets skill.”

-- James Heckman – Delay of gratification

Short-term Intervention Results

• Language benefits– Core– Receptive– Expressive

• Non-verbal IQ

Projected Benefits• Medium term:

– Special education– Grade repetition– High school graduation– Values/Emotional intelligence

Projected Benefits• Long term:

– College attendance– Employment– Income (tax revenue)– Benefits to posterity– Reduced crime rates

BenefitsSpecial Education

Average cost per special education student in U.S.A

current average cost per student $7,552

average cost per special education student $16,921.00

Differential $9,369.00

total special edu. Students 71,398

Total estimated cost of Oregon special edu. program $668,927,862

Reduction in special education 6% to 48%... "representative estimate"

Reduction in special education 6% to 48%...

"representative estimate"

12%

estimated cost savings from reduced special education $80,271,343.44

discounted annuity 3% real 13 years $853,682,152.05 0.03

per student $11,956.67

Costs• Low cost scenario

– Use existing Head Start room– Divide kids into 3 groups– One extra teacher and aide– Simultaneous interventions– Cost per student: $37.31

CostsLow Cost Program

one 40-minute session

round up to one hour including set-up, etc..

one additional teacher (hourly wage) $15.03

one aide (hourly wage) $13.00

no extra room needed --------

Teacher's wage 4 days a week for 8 weeks $480.90

Fidelity checks: 2 per 8 weeks, 3 in the same room (2x3) $112.71

Intervention materials $50.00

Total $671.63

Total per student (18 students per class) $37.31

Costs• High cost scenario

– Use additional room for intervention– One teacher and aide– 6 kids at a time – Cost per student: $247.41

CostsHigh Cost Program

three 40-minute sessions

equals 3 hours total per day, multiply hourly wage by 3

one additional teacher (for 3 hours) $45.08

one teacher's aide (for 3 hours) $39.00

extra room needed $800.00

Teacher's wage 4 days a week for 8 weeks $1,442.69

Teacher's aide wage 4 days a week for 8 weeks $1,248.00

Fidelity checks: 2 per 8 weeks, 3 interventions $112.71

Intervention materials $50.00

Cost of extra room for 8 weeks $1,600.00

Total $4,453.40

Total per student (18 students per class) $247.41

Costs• Training session

– Cost per teacher: $584.10

CostsTraining Costs:

For full day of training - 1/2 theory, 1/2 hands on

For 6 teachers at once

Trainer's hourly wage (teacher's wage + 25%) $18.79

Teacher's wage $15.03

Materials (videos, etc.) $20.00

Assume a week (5 days) w/ 6 hour days of training:

Trainer's wage $563.55

Teachers' wages $2,705.04

Materials $20.00

Total $3,288.59

Total per teacher (6 teachers) $548.10

Benefit Cost Comparison

Conclusions• Theory favors a early, short, intensive

intervention - both neuro and economic theory!– High neuroplasticity– Durable compounding results – Diminishing marginal returns

• Low costs, high return• Cost-effective program

Q & A(?)•