Age 37 Cost-Benefit Analysis of the Child-Parent Center Childhood Program

• In Event: The Child-Parent Center Program and Age 40 Well-Being: Impacts and Returns, Processes, and Scale Up Evidence

Abstract

Two previous cost-benefit analyses (CBA) of the Child-Parent Center (CPC) Program at ages 21 and 26 found benefits from $2 to $11 per dollar invested, with PreK showing the largest return (Authors et al., 2002, 2011). In this study, we conduct a new benefit-cost analysis at age 37 using updated outcomes on earnings and education, crime, and mental health. Unlike previously, a key addition is physical health outcomes (e.g., risk of cardiovascular disease) and health behavior (e.g., smoking).

The major questions are: (1) By how much, if at all, do midlife estimates of economic returns exceed those of prior years? and (b) What are the differential returns of preschool, school-age, and, and P-3 components?

Methods

Data are from the Chicago Longitudinal Study (CLS), a matched-group quasi-experimental design in which a same-age cohort of 1,539 participants born in 1979-1980 are followed prospectively to midlife. Over 90% of the CPC (N = 989) and comparison (N = 550) groups had available data on midlife outcomes. Distinctive features of the study are the large sample and increased generalizability over other studies, the comparison group’s participation in the usual intervention (full-day K) without preschool, and that CPC is an innovative publicly funded program providing comprehensive education and family support services from preschool to 3rd grade (P-3), with a focus on small classes and multi-faceted parent involvement (Author et al., 2016).

We followed the same procedures as prior studies. Impact estimates were based on propensity score models and we followed the key ingredients estimation methods of benefits. Results focus on PreK and P-3, with total benefits to society at large.

Results and Discussion

The average cost per child in 2020 dollars of the CPC preschool program is $10,532 (1.5 years, part-day). Respective school-age and P-3 (net of lesser participation) costs are $4,692 and $6,388. Table 1 summarizes evidence on main effects for two program contrasts, estimated net present value of benefits per CPC participant. At age 37, sizable adjusted differences in education, economic, and physical health, and health outcomes were detected. The preschool group had higher average annual income (Diff. = $2,424), and lower BMI (Diff. = 1 point) and Framingham risk scores (Diff. = 2.3 points).

CBA results indicated that the total societal benefit per participant was $141,752 for PreK and $63,577 for P-3. The respective B/C ratios were $13.46 and $9.95 per dollar invested (Table 1). The B/C ratios exceeded those assessed at age 26 by 2 to 3 dollars ($10.83 and $8.24), increases of over 20%. The main reason is the inclusion of physical health benefits. No mental health benefits were found. Our findings are likely conservative since benefits linked to obesity and smoking-related deaths were excluded. Subgroup differences may show distinct patterns.

More comprehensive and generalizable than prior studies, our findings show increasing economic returns of the program over the life course. They further amplify the rationale for scaling public investments in early childhood, of which health savings have been underutilized. In the on-going pandemic, these are an avenue for prevention.

Authors

• Judy Temple, University of Minnesota
  Presenting Author

• Nishank Varshney, University of Minnesota
  Non-Presenting Author

• Arthur Reynolds, University of Minnesota - Twin Cities
  Non-Presenting Author

• Suh-Ruu Ou, University of Minnesota - Twin Cities
  Non-Presenting Author

• Nicole Smerillo, University of Minnesota - Twin Cities
  Non-Presenting Author