1. Rob Grunewald Federal Reserve Bank of Minneapolis The Economic Case for Investments in Young Children

2. Human Brain Development Human Brain Development Synapse Formation Dependent on Early Experiences FIRST YEAR -8 -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Birth(Months)(Years) Sensory Pathways (Vision, Hearing) Language Higher Cognitive Function Source: C. Nelson (2000)

3. Barriers to Social Mobility Emerge at a Very Young Age 16 mos.24 mos.36 mos. Cumulative Vocabulary (Words) College Educated Parents Welfare Parents Child’s Age (Months) 200 600 1200 Source: Hart & Risley (1995)

4. Risk Factors for Adult Substance Abuse are Embedded in Adverse Childhood Experiences 0 2 4 6 8 10 12 14 16 01234 Self-Report: Alcoholism Self-Report: Illicit Drugs Self-Report: Alcoholism Self-Report: Illicit Drugs Source: Dube et al, 2002 Source: Dube et al, 2005 Source: Dube et al, 2002 Source: Dube et al, 2005 % ACEs 0 5 10 15 20 25 30 35 40 012345+

5. Risk Factors for Adult Heart Disease are Embedded in Adverse Childhood Experiences ACEs Source: Dong et al, 2004 Odds Ratio 012345,67,8 0.5 1 1.5 2 2.5 3 3.5

6. High/Scope Study of Perry Preschool In early 1960s, 123 children from low-income families in Ypsilanti, Mich. Children randomly selected to attend Perry or control group. High-quality program with well trained teachers, daily classroom sessions and weekly home visits. Tracked participants and control group through age 40.

7. Perry: Educational Effects Source: High/Scope Educational Research Foundation

8. Perry: Economic Effects at Age 40 Source: High/Scope Educational Research Foundation

9. Perry: Arrested 5 or More Times Before Age 40 Source: High/Scope Educational Research Foundation

10. Perry: Average Number of Months Served in Prison by Age 40 Source: High/Scope Educational Research Foundation

11. Perry Preschool Costs and Benefits Over 62 Years Source: High/Scope Educational Research Foundation

12. Perry Preschool — Estimated Return on Investment Benefit-Cost Ratio = $16 to $1 Annual Rate of Return = 18% Public Rate of Return = 16% Heckman Reanalysis: 10%

13. Benefit-Cost Ratios for Other Longitudinal Studies Abecedarian Educational Child Care –$4 to $1 Chicago-Child Parent –$7 to $1 Elmira Prenatal/Early Infancy Project –$5 to $1

14. Short-Run Benefits Allow parents to enter workforce Reduce absenteeism and turnover Attract businesses

15. Lessons Learned from Research Invest in quality Involve parents Start early Reach at-risk population Teach cognitive and noncognitive skills Bring to scale

16. Moving Forward Prenatal/early infant home visits for at-risk mothers Access to health care Parent education Quality child care Access to preschool

18. minneapolisfed.org