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Washington State Institute for Public Policy
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Early Head Start

Pre-K to 12 Education
Benefit-cost methods last updated December 2019.  Literature review updated April 2012.
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Early Head Start is a federally-funded program for low-income pregnant women and families with infants or toddlers that aims to enhance children's development and health and strengthen families. Families can receive services until the children are three years old. Early Head Start accounts for 10% of the Head Start budget; program providers determine the specific services offered following Head Start guidelines.
The estimates shown are present value, life cycle benefits and costs. All dollars are expressed in the base year chosen for this analysis (2018). The chance the benefits exceed the costs are derived from a Monte Carlo risk analysis. The details on this, as well as the economic discount rates and other relevant parameters are described in our Technical Documentation.
Benefit-Cost Summary Statistics Per Participant
Benefits to:
Taxpayers $3,305 Benefits minus costs ($11,332)
Participants $788 Benefit to cost ratio $0.02
Others $450 Chance the program will produce
Indirect ($4,336) benefits greater than the costs 29 %
Total benefits $207
Net program cost ($11,539)
Benefits minus cost ($11,332)
1In addition to the outcomes measured in the meta-analysis table, WSIPP measures benefits and costs estimated from other outcomes associated with those reported in the evaluation literature. For example, empirical research demonstrates that high school graduation leads to reduced crime. These associated measures provide a more complete picture of the detailed costs and benefits of the program.

2“Others” includes benefits to people other than taxpayers and participants. Depending on the program, it could include reductions in crime victimization, the economic benefits from a more educated workforce, and the benefits from employer-paid health insurance.

3“Indirect benefits” includes estimates of the net changes in the value of a statistical life and net changes in the deadweight costs of taxation.
Detailed Monetary Benefit Estimates Per Participant
Benefits from changes to:1 Benefits to:
Taxpayers Participants Others2 Indirect3 Total
Crime $0 $0 $0 $0 $0
Labor market earnings associated with test scores $239 $561 $296 $0 $1,096
K-12 grade repetition $49 $0 $0 $24 $73
K-12 special education $1,803 $0 $0 $902 $2,705
Health care associated with externalizing behavior symptoms $70 $20 $73 $35 $198
Subtotals $2,161 $581 $369 $961 $4,072
From secondary participant
Labor market earnings associated with major depression $211 $495 $0 $0 $706
Health care associated with major depression $79 $22 $82 $40 $222
Public assistance $854 ($312) $0 $427 $969
Mortality associated with depression $0 $1 $0 $6 $7
Subtotals $1,144 $207 $82 $472 $1,904
Adjustment for deadweight cost of program $0 $0 $0 ($5,769) ($5,769)
Totals $3,305 $788 $450 ($4,336) $207
Detailed Annual Cost Estimates Per Participant
Annual cost Year dollars Summary
Program costs $7,600 2010 Present value of net program costs (in 2018 dollars) ($11,539)
Comparison costs $1,679 2010 Cost range (+ or -) 10 %
Families who participate in Early Head Start typically participate for 1.75 years. Per-family costs from the US Department of Health and Human Services, Administration for Children & Families, FY 2010.
The figures shown are estimates of the costs to implement programs in Washington. The comparison group costs reflect either no treatment or treatment as usual, depending on how effect sizes were calculated in the meta-analysis. The cost range reported above reflects potential variation or uncertainty in the cost estimate; more detail can be found in our Technical Documentation.
Estimated Cumulative Net Benefits Over Time (Non-Discounted Dollars)
The graph above illustrates the estimated cumulative net benefits per-participant for the first fifty years beyond the initial investment in the program. We present these cash flows in non-discounted dollars to simplify the “break-even” point from a budgeting perspective. If the dollars are negative (bars below $0 line), the cumulative benefits do not outweigh the cost of the program up to that point in time. The program breaks even when the dollars reach $0. At this point, the total benefits to participants, taxpayers, and others, are equal to the cost of the program. If the dollars are above $0, the benefits of the program exceed the initial investment.

^WSIPP’s benefit-cost model does not monetize this outcome.

^^WSIPP does not include this outcome when conducting benefit-cost analysis for this program.

Meta-analysis is a statistical method to combine the results from separate studies on a program, policy, or topic in order to estimate its effect on an outcome. WSIPP systematically evaluates all credible evaluations we can locate on each topic. The outcomes measured are the types of program impacts that were measured in the research literature (for example, crime or educational attainment). Treatment N represents the total number of individuals or units in the treatment group across the included studies.

An effect size (ES) is a standard metric that summarizes the degree to which a program or policy affects a measured outcome. If the effect size is positive, the outcome increases. If the effect size is negative, the outcome decreases.

Adjusted effect sizes are used to calculate the benefits from our benefit cost model. WSIPP may adjust effect sizes based on methodological characteristics of the study. For example, we may adjust effect sizes when a study has a weak research design or when the program developer is involved in the research. The magnitude of these adjustments varies depending on the topic area.

WSIPP may also adjust the second ES measurement. Research shows the magnitude of some effect sizes decrease over time. For those effect sizes, we estimate outcome-based adjustments which we apply between the first time ES is estimated and the second time ES is estimated. We also report the unadjusted effect size to show the effect sizes before any adjustments have been made. More details about these adjustments can be found in our Technical Documentation.

Meta-Analysis of Program Effects
Outcomes measured Treatment age Primary or secondary participant No. of effect sizes Treatment N Adjusted effect sizes(ES) and standard errors(SE) used in the benefit - cost analysis Unadjusted effect size (random effects model)
First time ES is estimated Second time ES is estimated
ES SE Age ES SE Age ES p-value
Crime 1 Primary 1 842 0.000 0.050 10 0.000 0.050 20 0.000 1.000
Externalizing behavior symptoms 1 Primary 1 842 -0.038 0.050 10 -0.021 0.031 13 -0.038 0.447
Internalizing symptoms 1 Primary 1 842 -0.052 0.050 10 -0.052 0.050 12 -0.052 0.296
K-12 grade repetition 1 Primary 1 842 -0.041 0.088 10 -0.041 0.088 17 -0.041 0.637
K-12 special education 1 Primary 1 842 -0.093 0.081 10 -0.093 0.081 17 -0.093 0.252
Test scores 1 Primary 1 842 0.011 0.052 10 0.007 0.057 17 0.011 0.827
Employment^^ 20 Secondary 1 842 0.000 0.050 29 n/a n/a n/a 0.000 1.000
Major depressive disorder 20 Secondary 1 842 -0.045 0.050 29 -0.023 0.274 31 -0.045 0.364
Public assistance 20 Secondary 1 842 -0.073 0.060 29 -0.073 0.060 39 -0.073 0.224
Substance use disorder^ 20 Secondary 1 842 -0.008 0.112 29 n/a n/a n/a -0.008 0.940
Years of education 20 Secondary 1 842 0.000 0.050 29 0.000 0.050 39 0.000 1.000

Citations Used in the Meta-Analysis

Roggman, L.A., Boyce, L.K., & Cook, G.A. (2009). Keeping kids on track: Impacts of a parenting-focused early head start program on attachment security and cognitive development. Early Education and Development, 20(6), 920-941.

Vogel, C.A., Xue, Y., Moiduddin, E.M., Carlson, B.L., & Kisker, E. (2010). Early Head Start children in grade 5: Long-term follow-up of the Early Head Start research and evaluation study sample (Final Report) (Document No. PR10-61). Princeton, NJ: Mathematica Policy Research.