Abstract
High-quality early child development initiatives are expensive. However, careful analysis of the returns on investment for such initiatives establishes that, from the government's perspective, the initiatives all but pay for themselves. The explanation for this is twofold. First, early childhood interventions enhance adult employability and earnings of program participants. This generates $8.2 billion in tax revenues that partially offset program costs. Second, early childhood interventions reduce the need for expensive remedial programs such as special education and medical treatment, reducing government expenditures by $4.9 billion.