IDEAS home Printed from https://ideas.repec.org/p/keo/dpaper/2024-011.html
   My bibliography  Save this paper

The Rate of Return to Early Childhood Education in Japan: Estimates from the Nationwide Expansion

Author

Listed:
  • Hideo Akabayashi

    (Faculty of Economics, Keio University)

  • Ryuichi Tanaka

    (Institute of Social Science, University of Tokyo)

Abstract

We present new estimates of the internal rate of return to early childhood education. Utilizing the nationwide expansion of preschool education in Japan between 1960 and 1980, we initially assess the impact of preschool attendance on high school graduation and college enrollment for men. Subsequently, we compute the social rate of return to preschool attendance for men by drawing upon national wage statistics to project expected wage trajectories and referencing government documents to account for the social cost of preschools. Our findings indicate a social rate of return ranging from 5.7% to 8.1%, consistent with previous estimates in the literature.

Suggested Citation

  • Hideo Akabayashi & Ryuichi Tanaka, 2024. "The Rate of Return to Early Childhood Education in Japan: Estimates from the Nationwide Expansion," Keio-IES Discussion Paper Series 2024-011, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2024-011
    as

    Download full text from publisher

    File URL: https://ies.keio.ac.jp/upload/DP2024-011_EN.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hanushek, Eric A & Rivkin, Steven G & Taylor, Lori L, 1996. "Aggregation and the Estimated Effects of School Resources," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 611-627, November.
    2. Fertig, Michael & Wright, Robert E., 2005. "School quality, educational attainment and aggregation bias," Economics Letters, Elsevier, vol. 88(1), pages 109-114, July.
    3. Berlinski, Samuel & Galiani, Sebastian & Gertler, Paul, 2009. "The effect of pre-primary education on primary school performance," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 219-234, February.
    4. Akabayashi, Hideo & Ruberg, Tim & Shikishima, Chizuru & Yamashita, Jun, 2023. "Education-oriented and care-oriented preschools: Implications on child development," Labour Economics, Elsevier, vol. 84(C).
    5. Arteaga, Irma & Humpage, Sarah & Reynolds, Arthur J. & Temple, Judy A., 2014. "One year of preschool or two: Is it important for adult outcomes?," Economics of Education Review, Elsevier, vol. 40(C), pages 221-237.
    6. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    7. William T. Gormley, Jr. & Ted Gayer, 2005. "Promoting School Readiness in Oklahoma: An Evaluation of Tulsa's Pre-K Program," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
    8. Greg J. Duncan & Katherine Magnuson, 2013. "Investing in Preschool Programs," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 109-132, Spring.
    9. Asai, Yukiko & Kambayashi, Ryo & Yamaguchi, Shintaro, 2015. "Childcare availability, household structure, and maternal employment," Journal of the Japanese and International Economies, Elsevier, vol. 38(C), pages 172-192.
    10. Qi Li & Jeffrey Scott Racine, 2006. "Density Estimation, from Nonparametric Econometrics: Theory and Practice," Introductory Chapters, in: Nonparametric Econometrics: Theory and Practice, Princeton University Press.
    11. Janet Currie, 2001. "Early Childhood Education Programs," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 213-238, Spring.
    12. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
    13. Clive R Belfield & Milagros Nores & Steve Barnett & Lawrence Schweinhart, 2006. "The High/Scope Perry Preschool Program: Cost–Benefit Analysis Using Data from the Age-40 Followup," Journal of Human Resources, University of Wisconsin Press, vol. 41(1).
    14. Shuang Yang, 2021. "The Long-Run Effects of Early Childhood Education and Care—An Empirical Analysis Based on the China Family Panel Studies Survey," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(5), pages 2021-2044, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sneha Elango & Jorge Luis García & James J. Heckman & Andrés Hojman, 2015. "Early Childhood Education," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 235-297, National Bureau of Economic Research, Inc.
    2. María Jesús Mancebón Torrubia & Domingo P. Ximénez-de-Embún & Adriano Villar-Aldonza, 2018. "Evaluación del efecto de la escolarización temprana sobre las habilidades cognitivas y no cognitivas de los niños de cinco/seis años," Hacienda Pública Española / Review of Public Economics, IEF, vol. 226(3), pages 123-153, September.
    3. Dimiski, Anastasia, 2023. "How does pre-school attendance affect school performance? An application of Gini-BMA methodology on PISA 2018 dataset," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    4. van Huizen, Thomas & Plantenga, Janneke, 2018. "Do children benefit from universal early childhood education and care? A meta-analysis of evidence from natural experiments," Economics of Education Review, Elsevier, vol. 66(C), pages 206-222.
    5. Martin Schlotter, 2012. "Educational Production in Preschools and Schools - Microeconometric Evidence from Germany," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 41.
    6. Samuel Berlinski & Norbert Schady, 2015. "Daycare Services: It’s All about Quality," Palgrave Macmillan Books, in: Samuel Berlinski & Norbert Schady (ed.), The Early Years, chapter 4, pages 91-119, Palgrave Macmillan.
    7. Anastasia Dimiski, 2020. "Factors that affect Students’ performance in Science: An application using Gini-BMA methodology in PISA 2015 dataset," Working Papers 2004, University of Guelph, Department of Economics and Finance.
    8. Pierre Lefebvre & Claude Felteau, 2023. "Can universal preschool education intensities counterbalance parental socioeconomic gradients? Repeated international evidence from Fourth graders skills achievement," Working Papers 23-01, Research Group on Human Capital, University of Quebec in Montreal's School of Management.
    9. Jo Blanden & Emilia Del Bono & Kirstine Hansen & Birgitta Rabe, 2022. "Quantity and quality of childcare and children’s educational outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 785-828, April.
    10. Rossin-Slater, Maya & Wüst, Miriam, 2016. "What is the Added Value of Preschool? Long-Term Impacts and Interactions with a Health Intervention," IZA Discussion Papers 10254, Institute of Labor Economics (IZA).
    11. M. Caridad Araujo & Yyannu Cruz-Aguayo & Analia Jaimovich & Sharon Lynn Kagan, 2015. "Drawing Up an Institutional Architecture," IDB Publications (Book Chapters), in: Samuel Berlinski & Norbert Schady (ed.), The Early Years: Child Well-Being and the Role of Public Policy, edition 1, chapter 7, pages 179-202, Inter-American Development Bank.
    12. Maya Rossin-Slater & Miriam Wüst, 2016. "What is the Added Value of Preschool for Poor Children? Long-Term and Intergenerational Impacts and Interactions with an Infant Health Intervention," NBER Working Papers 22700, National Bureau of Economic Research, Inc.
    13. Berkes, Jan & Bouguen, Adrien & Filmer, Deon & Fukao, Tsuyoshi, 2024. "Improving preschool provision and encouraging-demand: Evidence from a large-scale construction program," Journal of Public Economics, Elsevier, vol. 230(C).
    14. Ylenia Brilli & Daniela Del Boca & Chiara Monfardini, 2013. "Child Care Arrangements: Determinants and Consequences," CHILD Working Papers Series 18, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    15. Elizabeth U. Cascio, 2009. "Do Investments in Universal Early Education Pay Off? Long-term Effects of Introducing Kindergartens into Public Schools," NBER Working Papers 14951, National Bureau of Economic Research, Inc.
    16. Holla,Alaka & Bendini,Maria Magdalena & Dinarte Diaz,Lelys Ileana & Trako,Iva, 2021. "Is Investment in Preprimary Education Too Low ? Lessons from (Quasi) ExperimentalEvidence across Countries," Policy Research Working Paper Series 9723, The World Bank.
    17. Herbst, Chris M. & Tekin, Erdal, 2010. "Child care subsidies and child development," Economics of Education Review, Elsevier, vol. 29(4), pages 618-638, August.
    18. M. Caridad Araujo & Marta Dormal & Norbert Schady, 2019. "Childcare Quality and Child Development," Journal of Human Resources, University of Wisconsin Press, vol. 54(3), pages 656-682.
    19. Christina Felfe & Natalia Nollenberger & Núria Rodríguez-Planas, 2015. "Can’t buy mommy’s love? Universal childcare and children’s long-term cognitive development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 393-422, April.
    20. Christina Gathmann & Björn Sass, 2018. "Taxing Childcare: Effects on Childcare Choices, Family Labor Supply, and Children," Journal of Labor Economics, University of Chicago Press, vol. 36(3), pages 665-709.

    More about this item

    Keywords

    Internal rate of return; Universal preschool expansion; Kindergarten; Nursery school;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:keo:dpaper:2024-011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Institute for Economics Studies, Keio University (email available below). General contact details of provider: https://edirc.repec.org/data/iekeijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.