Microsoft Word Heckman final 2007-03-22c jsb doc



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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 




 

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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. 




 

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References   

Anderson, D. A. The Aggregate Burden of Crime. J. Law and Econ. 42(2), 611–

642. 1999. 

Armor, D. J. Maximizing Intelligence. New Brunswick, NJ: Transaction 

Publishers. 2003. 

Barnett, W. S. Benefit-cost Analysis of Preschool Education. PowerPoint 

presentation, 

http://nieer.org/resources/files/BarnettBenefits.ppt

.  Nov., 2004. 

Barnett, W. S. and L. N. Masse. A Benefit-cost Analysis of the Abecedarian Early 

Childhood Intervention. Technical report, National Institute for Early Education Research 

(NIEER), New Brunswick, New Jersey. 2002. 

Blau, D. and J. Currie. Preschool, Daycare, and Afterschool Care: Who’s Minding 

the Kids?  In E. Hanushek and F. Welch (Eds.), Handbook of the Economics of 

Education, Volume 1 of Handbooks in Economics. Amsterdam: North-Holland. 2006. 

Bowles, S., H. Gintis, and M. Osborne Groves (Eds.). Unequal Chances: Family 



Background and Economic Success. Princeton: Princeton University Press. 2005. 

Bureau of Justice . Bureau of Justice Statistics Criminal Offenders Statistics. 

http://www.ojp.usdoj.gov/bjs/. 2004. 

Cameron, S. V. and J. J. Heckman. Can Tuition Policy Combat Rising Wage 

Inequality?  In M. Kosters (Ed.), Financing College Tuition: Government Policies and 

Educational Priorities, Chapter 5, pp. 125. Washington, D.C.: AEI Press. 1999. 

Cameron, S. V. and J. J. Heckman. The Dynamics of Educational Attainment for 

Black, Hispanic, and White Males. J. Pol. Econ. 109(3) (2001): 455–99. 



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