Early Childhood Education's Long-term Impact on Human Capital: Evidence from Rural China

• In Event: Long-Term Impacts of Early Childhood Education Interventions in Rural China

Abstract

Background
Early Childhood Education (ECE) is crucial for shaping an individual’s human capital, with a higher return on investment compared to later education and training. Studies in developed countries also demonstrated that ECE significantly improves academic achievement, social skills, and economic productivity. However, while numerous studies have explored its immediate impacts in developing countries, the enduring effects, particularly in rural areas, remain inadequately explored. This study aims to fill this gap by investigating the long-term effects of ECE on the human capital of high school students in rural China.

Methods
Utilizing data from “One Village One Preschool” (OVOP), a comprehensive field experiment conducted in rural central and western China, we examine the effect of ECE on human capital outcomes of high school students. Following a sample of 10,880 high school students from OVOP intervention counties in 2022 and 2023, We measured cognitive abilities through academic performance and non-cognitive abilities using the Big Five Inventory-Short (BFI-S), Self-control Scale (SCS), and economic preferences (risk, time, and social preferences). Our analysis used Ordinary Least Squares (OLS) and Fixed Effects models to reduce selection bias and accurately assess the long-term effects of OVOP on students' human capital.

Results
The results reveal that the OVOP program significantly increased preschool education access for children from disadvantaged families, enhancing opportunities for higher education and human capital accumulation. Additionally, students who participated in the OVOP exhibit substantially better academic achievement. Specifically, the probability of students from OVOP entering undergraduate universities is 9.6% higher compared to students without preschool education, 6.7% higher than those in town private ECE, and 5.7% higher than those in county private ECE. Similar trends are observed for admission to first-tier undergraduate universities. The effects of OVOP on students’ academic performance have persisted from elementary school to high school, with the impact reaching its peaking in junior high school. OVOP students also have a 13% higher chance of attending regular high school compared to students without preschool education and a 3.7% higher chance compared to students from town private kindergartens.
In addition to academic performance, OVOP positively influences students' non-cognitive skills. High school students in the OVOP program exhibit higher levels of conscientiousness, social-emotional stability, and self-control. The program also impacts students' economic preferences, including risk, time, and social preferences. OVOP students score higher in time preference compared to those without ECE and tend to be more altruistic, egalitarian, less spiteful, and less selfish compared to students who experienced no ECE, county public ECE, private ECE, or town private ECE.

Conclusion
These findings underscore the critical role of low-cost and high-quality ECE in enhancing long-term human capital outcomes, particularly in under-resourced rural settings. This study contributes new evidence to the long-term evaluation of preschool education programs in rural areas of developing countries, highlighting the importance of increased investment in ECE to promote equitable educational opportunities and foster socio-economic development. Moreover, our findings on the impact of ECE on economic preferences also highlight the importance of taking a broad perspective when designing and evaluating ECE programs.

Authors

• Sangui Wang, Renmin University of China

• Lijuan Zheng, Renmin University of China

• Zhixin Du, China Development Research Foundation

• Ling Ding, China Development Research Foundation