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families foster in their children. Both cognitive and noncognitive skills are important for success
in school and in life.
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The enriched early childhood interventions have had their greatest
impacts on creating motivation and successful attitudes among participants — traits usually
ignored in discussions of educational policy.
A large body of empirical work at the interface of neuroscience and social science has
established that fundamental cognitive and noncognitive skills are produced in the early years of
childhood, long before children start kindergarten. The technology of skill formation developed
by economists shows that learning and motivation are dynamic, cumulative processes.
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Schooling comes too late in the life cycle of the child to be the main locus of remediation for the
disadvantaged. Public schools focus only on tested academic knowledge and not the noncognitive
behavioral components that are needed for success in life. Schools cannot be expected to
duplicate what a successfully functioning family gives its children. Parental environments play a
crucial part in shaping the lives of children.
Later remediation of early deficits is costly, and often prohibitively so.
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Remedial
schooling, public sector job training programs, and second chance GED programs are largely
ineffective at current levels of funding. While these programs can be improved, and do help a
few, they are not cost-effective when compared with alternative policies.
Families matter. But most Americans are justifiably reluctant to intervene in the early
years and prefer to respect the sanctity of the family. In the past forty years, American society has
experimented with voluntary enriched family supplementation programs, which offer children
from disadvantaged environments some of the cognitive and emotional stimulation and
enrichment given by more advantaged families.
Children who received these enriched environments were followed into adulthood.
Comparing their social and economic outcomes to those of similar children denied access to these
35
environments by randomization, one finds that the treated children perform better at school, are
less likely to drop out of school, and are more likely to graduate high school and to attend
college. The treated children are less likely to be teenage mothers and foster a new generation of
deprived children. They are less likely to be on welfare and less likely to smoke or use drugs.
Treated students have higher test scores. A principal benefit of early childhood intervention is in
shaping the noncognitive skills - behavior, motivation and self control - that are not considered an
important outcome of the schooling curriculum in current policy discussions.
The estimated rate of return to the Perry preschool program is about 16%. This includes
benefits from reduced remediation and reduced crime, as well as the increased earnings of the
participant. All of the children targeted for intervention are of low ability. While much work
remains to be done to bolster the case for wide-scale application of these programs to
disadvantaged families, the current evidence is powerfully suggestive, if not yet definitive, that
large-scale programs will be effective. None of this evidence supports universal preschool
programs.
It is important to note what we are not saying. We do not claim that all skills and
motivations are formed in the early years, nor that schools and firms do not matter in producing
effective people. We are also not offering any claims that the early years are the sole
determinants of later success, or that persons who are raised in disadvantaged families should be
absolved of any guilt when they participate in crime. We are simply arguing that early
environments play a large role in shaping later outcomes and that their importance is neglected in
current policy. The recent evidence on the technology of human skill formation establishes that
enriched early environments need to be followed up by good schooling and workplace learning
environments. Complementarity of investments at different ages is an intrinsic feature of the
human skill formation process. Enriching the early years will promote the productivity of schools
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by giving teachers better-quality students. Improving the schools will in turn, improve the quality
of the workforce.
The available evidence on the technology of skill formation shows the self-productivity of
early investment. Figure 12 summarizes the argument. At current levels of public support,
America under-invests in the early years of its disadvantaged children. Redirecting funds toward
the early years is a sound investment in the productivity and safety of American society, and also
removes a powerful source of inequality.
37
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