Question

Explain why James Heckman would argue that it would be preferable to institute a universal preschool program than a program reducing college tuition. Your answer should include evidence regarding the rate of return from both investments and discussion of credit constraints for higher education.

Answer 1

According to James Heckman investing in early childhood education is a cost-effective strategy for the developmental growth of at-risk young children. Short-term costs are more than offset by the immediate and long-term benefits through reduction in the need for special education and remediation, better health outcomes, reduced need for social services, lower criminal justice costs and increased self-sufficiency and productivity among families.