Economic Impact

Economic development starts with early childhood developmentā€”and the best investment is in providing disadvantaged children with access to high-quality early childhood education. Evidence shows that increased access to high-quality early childhood learning and care programs results in short- and long-term benefits to individuals and society. In fact, some programs have demonstrated that every dollar invested in quality early childhood education for disadvantaged children from birth to age five delivers a 13% per year return on investment. Expanding access to high-quality early childhood education programs benefits children, families, and even saves society money. Estimates show:

  • Investments in high-quality early childhood education for disadvantaged children return 13% per annum based on improved social and economic outcomes. [1]
  • Investments in high-quality early childhood education can generate up to $7.30 per dollar invested. [1]
  • Access to stable, high-quality child care also helps parents improve their labor productivity by increasing work hours, missing fewer work days, and pursuing further education. [2]
  • The availability of early childhood education programs attracts homebuyers and increases property values by $13.00 for every dollar invested in local programs. [2]
  • Early childhood education reduces grade retention and is shown to save school systems money for K-12 education. [3]
  • Participants in high-quality early childhood education also show long-term gains in the form of lower rates of incarceration (46% reduction), lower rates of arrest for violent crimes (33% reduction), and less likely to have received government assistance (26% reduction). [4]