Costs, Benefits, and Long-Term Effects of Early Care and Education Programs: Recommendations and Cautions for Community Developers

Participation in early care and education (ECE) programs has become the norm for this nation's three- and four-year olds. Public investments in such programs have been promoted on the grounds that they can produce high rates of return in the form of academic outcomes, greater employment rates, and reduced crime. Yet, potential gains are not always realized, as benefits and costs depend on who is served by the program, the activities provided, and the resources required to produce such activities. This paper reviews the basis for claims related to the costs, benefits, and long-term effects of ECE programs, including effects on children's learning and development and parental earnings. It also summarizes what is known about the extent to which variations in child and program characteristics and the community context alter the magnitude of benefits from ECE, as well as policy choices that could increase educational gains and other benefits, thereby increasing the return on public investments.