A Benefit Cost Analysis of Early Childhood Intervention By Jenny Yaillen And Nate Blair

Overview Literature Review –Previous interventions –Neuroscience Benefits Costs Q & A

Lit Review Abecedarian Program – 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 – 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 focusShort RunMedium RunLong RunEstimated Rate of Return Abecedarian N=117 Full-day program Cognition Fine motor skills Social development Language IQ Reading/math skills Maternal employment & earnings IQ Grade retention Special education High school completion College enrollment Health (smoking) 7% Perry Preschool N=123 Half-day program Based on children’s natural play Planning skills IQ Language Behavior IQ Special education Juvenile delinquency Teen pregnancy Academic achievement Employment High school completion Arrests Income Welfare use 16% Chicago CPC 1967-present N=1539 Half-day program Basic language and math skills Reading/math skills Grade retention Special education Crime/delinquency High school completion Arrests 18% Head Start (retrospective analysis using PSID) 1965-present N=4000 Half-day program Learning skills Social skills Health status VocabularyAcademic performance (vocabulary tests) Grade retention Immunization Height High school completion College enrollment Income Criminal 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

Benefits Special 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, Differential$9, total special edu. Students71,398 Total estimated cost of Oregon special edu. program$668,927,862 Reduction in special education 6% to 48%... "representative estimate" 12% estimated cost savings from reduced special education$80,271, discounted annuity 3% real 13 years$853,682, 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

Costs Low 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)$13.00 no extra room needed Teacher's wage 4 days a week for 8 weeks$ Fidelity checks: 2 per 8 weeks, 3 in the same room (2x3)$ Intervention materials$50.00 Total$ 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

Costs High 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)$39.00 extra room needed$ Teacher's wage 4 days a week for 8 weeks$1, Teacher's aide wage 4 days a week for 8 weeks$1, Fidelity checks: 2 per 8 weeks, 3 interventions$ Intervention materials$50.00 Cost of extra room for 8 weeks$1, Total$4, Total per student (18 students per class)$247.41

Costs Training session –Cost per teacher: $584.10

Costs Training 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.)$20.00 Assume a week (5 days) w/ 6 hour days of training: Trainer's wage$ Teachers' wages$2, Materials$20.00 Total$3, 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(?)