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Perry School Preschool's Estimated Impact per Program Participant, Real Internal Rate of Return

Table

Published March 1, 2003  |  March 2003 issue

Average Annual Effect in 1992 Dollars
Benefits** For Participant For Public Total
Child care provided  
(Ages 3-4)
385
0
385
More efficient K-12 education  
(Ages 5-17)
0
747
747
Decrease in public adult education services  
(Ages 20-25)
0
89
89
Participants' earnings/benefits  
(Ages 18-27)
2,142
714
2,856
(Ages 28-65)
1,070
357
1,427
Decrease in crime  
(Ages 18-27)
0
8,923
8,923
(Ages 28-65)
0
1,565
1,565
Increase in publicly funded higher education costs  
(Ages 20-25)
0
-225
-225
Decrease in welfare payments

 

 

 

(Ages 18-27)
-392
431
39
(Ages 28-65)
-31
34
3
Cost of Program
                                      (Ages 3-4)
0
-6,444
-6,444
Estimated Real Internal Rate of Return
4%
12%
16%
 

Estimated return on $1 invested in program:

*The internal rate of return is the interest rate received for an investment that consists of payments and revenue occurring at regular periods. The above amounts were allocated annually across the age groups listed.

**Benefits and costs were measured from ages 3 through 27 and projected for ages 28 through 65.

Data Source: The High/Scope Perry Preschool Study Through Age 27

Return to: Early Childhood Development: Economic Development
with a High Public Return

Table 1A—Benefit Cost/Analysis
Table 2—Cost Estimate to Educate all 3- and 4-Year-Old Children From Low-Income Families in Minnesota at a Two-Year, High-Quality ECDP

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