The Rate of Return to the High/Scope Perry Preschool Program

Area of Science:

• Economics
• Education Policy
• Developmental Psychology

Background:

• The High/Scope Perry Preschool Program is a prominent early intervention initiative.
• Previous economic return estimates for the program have not accounted for randomization compromises or reported standard errors.
• These prior estimates are frequently cited to advocate for preschool education's economic advantages.

Purpose of the Study:

• To re-estimate the rate of return for the High/Scope Perry Preschool Program.
• To address limitations in previous analyses, specifically randomization protocol compromises and lack of standard errors.
• To conduct a sensitivity analysis using alternative assumptions.

Main Methods:

• Recalculating the rate of return, incorporating adjustments for randomization compromises.
• Reporting standard errors for the estimated rates of return.
• Performing extensive sensitivity analyses to assess the robustness of findings under various assumptions.

Main Results:

• Estimated annual social rates of return typically range from 7-10 percent.
• Most revised estimates are lower than previously reported figures in academic literature.
• Returns remain statistically significant for both males and females, exceeding historical equity returns.
• Benefit-to-cost ratios corroborate the positive economic impact.

Conclusions:

• The economic benefits of the High/Scope Perry Preschool Program are statistically significant and positive.
• Revised estimates suggest more moderate, yet still substantial, economic returns compared to prior studies.
• The program demonstrates a favorable return on investment, supporting its value as an early intervention.