Perry School Preschool's Estimated Impact per Program Participant, 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
