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March 2003

Perry School Preschool's Estimated Impact
per Program Participant

Table 1B—Real Internal Rate of Return*

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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