The New Zealand Herald

Chicago study highlights economic value of quality

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A study from the University of Chicago finds that quality daycare can help break the poverty cycle: Low-income mothers with access to good programmes raise children who grow up to earn more money.

In other words, quality childcare, which includes educationa­l activities and healthy meals, appears to better prepare children for school and the labour force.

“Supplying the support for low- income families will lead to a larger social return,” said co-author and economist Jorge Luis Garcia.

The University of Chicago study, led by James Heckman, a Nobel laureate economist, tracked children from birth until age 35. Heckman and his team focused on two fulltime programmes in North Carolina, which provided free care to low-income children, ages 8 weeks to 5 years.

The researcher­s followed a group of children who were born in the mid70s and received the care, which featured daily educationa­l exercises, and a “control” group that either stayed at home or landed in cheaper or part-time programmes.

They found that mothers who had received the free, fulltime care made more money while their children were in preschool, and out-earned their peers 20 years later.

When they turned 30, meanwhile, they were out-earning their counterpar­ts in the control group.

The programme disproport­ionately benefited boys, the researcher­s wrote, because boys who grow up economical­ly disadvanta­ged are more likely to get suspended at school and land in the criminal justice system.

Lynette Fraga, executive director of Child Care Aware of America, a national organisati­on focused on the

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