Early‐Life Origins of Life‐Cycle Well‐Being: Research and Policy Implications

Mounting evidence across different disciplines suggests that early‐life conditions can have consequences on individual outcomes throughout the life cycle. Relative to other developed countries, the United States fares poorly on standard indicators of early‐life health, and this disadvantage may have profound consequences not only for population well‐being, but also for economic growth and competitiveness in a global economy. In this paper, we first discuss the research on the strength of the link between early‐life health and adult outcomes, and then provide an evidence‐based review of the effectiveness of existing U.S. policies targeting the early‐life environment. We conclude that there is a robust and economically meaningful relationship between early‐life conditions and well‐being throughout the life cycle, as measured by adult health, educational attainment, labor market attachment, and other indicators of socioeconomic status. However, there is some variation in the degree to which current policies in the United States are effective in improving early‐life conditions. Among existing programs, some of the most effective are the Special Supplemental Program for Women, Infants, and Children (WIC), home visiting with nurse practitioners, and high‐quality, center‐based early‐childhood care and education. In contrast, the evidence on other policies such as prenatal care and family leave is more mixed and limited.     

Innovation in Welfare Policy: Evaluating State Efforts to Encourage Work among Low‐Income Families1

This article examines what states are doing to help Temporary Assistance to Needy Families (TANF) recipients move into the workforce and become self‐supporting. We first present documentation regarding many different state TANF policies aimed at encouraging work, including benefit structures, time limits, work requirements, sanctions, and work supports. We then discuss how effective these policies are at helping welfare recipients get jobs and increase their income, by reviewing research on each of these elements. We conclude that the TANF program has been effective in increasing employment and decreasing welfare caseloads and expenses, but that this has not resulted in overall income gains for welfare recipients in the long run. We also conclude that the most promising state programs have a strong employment focus combined with focused training and educational opportunities. In addition, we also find that sanctions appear to be harming those most in need of assistance, and therefore that such policies should be reevaluated and refocused.     

Peer effects in private and public schools across countries

Many argue that the composition of a school or classroom‐that is, the characteristics of the students themselves‐affect the educational attainment of an individual student. This influence of the students in a classroom is often referred to as a peer effect. There have been few systematic studies that empirically examine the peer effect in the educational process. In this research, we examine the peer effect with a unique data set that includes individual student achievement scores and comprehensive characteristics of the students' families, teachers, other school characteristics, and peers for five countries. The data allow an examination of peer effects in both private and public schools in all countries. Our analysis indicates that peer effects are a significant determinant of educational achievement; the effects of peers appear to be greater for low‐ability students than for high‐ability students. The finding is robust across countries but not robust across school type. © 2000 by the Association for Public Policy Analysis and Management.     

The Influence of Low‐Income Children's Participation in Head Start on Their Parents’ Education and Employment

Head Start is the oldest and largest federally funded preschool program in the United States. From its inception in 1965, Head Start not only provided early childhood education, care, and services for children, but also sought to promote parents’ success. However, almost all evaluation studies of Head Start have focused solely on children's cognitive and social outcomes rather than on parents’ outcomes. The present study examines whether children's participation in Head Start promotes parents’ educational advancement and employment. We use data from the Head Start Impact Study (HSIS), a randomized trial of over 4,000 newly entering three‐ and four‐year‐old children. We find that parents of children in the three‐year‐old cohort (but not the four‐year‐old cohort), who were randomly assigned to and participated in Head Start, had steeper increases in their own educational attainment by child age six years compared to parents of children in the control group. This pattern is especially strong for parents who had at least some college experience at baseline, as well as for African‐American parents. We do not find evidence that Head Start helped parents enter or return to the workforce over time. Results are discussed in the context of using high‐quality early childhood education as a platform for improving both child and parent outcomes.     

Pay‐as‐You‐Go Financing and Capital Outlay Volatility: Evidence from the States over Two Recent Economic Cycles

Pay‐as‐you‐go (pay‐go or cash) and pay‐as‐you‐use (pay‐use or debt) are two mechanisms to finance capital projects. While pay‐go faces multiple constraints, pay‐use smoothes outlays, stabilizes tax rates, and improves inter‐generational equity. Thus, pay‐use has dominated infrastructure financing for decades. In recent years, there has been revived academic interest in pay‐go as an alternate financing mechanism; however, there is a large gap in the literature and inadequate evidence on the effects of pay‐go, especially its effects on capital outlay volatility. This paper fills in the niche. Examining state experience over the two recent economic cycles, this paper finds evidence that suggests that pay‐go is associated with lower volatility in capital spending in the long run, but may increase short‐run variability. We recommend that states couple pay‐go in boom years with pay‐use in lean years. In unison, the two mechanisms can reduce aggregate volatility and increase long‐run stability of capital expenditures.     

The Impact of Incentives to Recruit and Retain Teachers in “Hard‐to‐Staff” Subjects

We investigate the effects of a statewide program designed to increase the supply of teachers in designated “hard‐to‐staff” areas, such as special education, math, and science. Employing a difference‐in‐difference estimator we find that the loan forgiveness component of the program was effective, reducing mean attrition rates for middle and high school math and science teachers by 10.4 percent and 8.9 percent, respectively. We also find that the impact of loan forgiveness varied with the generosity of payments; when fully funded, the program reduced attrition of special education teachers by 12.3 percent, but did not have a statistically significant impact when funding was substantially reduced. A triple‐difference estimate indicates that a one‐time bonus program also had large effects, reducing the likelihood of teachers’ exit by as much as 32 percent in the short run. A back‐of‐the‐envelope cost‐benefit analysis suggests that both the loan forgiveness and the bonus program were cost effective.     

Did California Paid Family Leave Impact Infant Health?

The effects of paid parental leave policies on infant health have yet to be established. In this paper we investigate these effects by exploiting the introduction of California Paid Family Leave (PFL), the first program in the U.S. that specifically provides working parents with paid time off for bonding with a newborn. We measure health using the full census of infant hospitalizations in California and a set of control states, and implement a differences‐in‐differences approach. Our results suggest a decline in infant admissions, which is concentrated among those causes that are potentially affected by closer childcare (and to a lesser extent breastfeeding). Other admissions that are unlikely to be affected by parental leave do not exhibit the same pattern.     

Political Decentralization and Technological Innovation: Testing the Innovative Advantages of Decentralized States

Are politically decentralized states better at fostering long‐run technological innovation than centralized states? Societies with decentralized governments are widely seen as agile, competitive, and well structured to adapt to innovation's gale of creative destruction. Meanwhile, centralized states, even when democratic, have come to be viewed as rigid and thus hostile to the risks, costs, and change associated with new technology, or prone to cling too long to foolhardy or outdated technological projects. Therefore government decentralization is often perceived as a necessary institutional foundation for encouraging long‐run technological innovation. However, in this article, I analyze data on international patent activity, scientific publications, and high‐technology exports, and show that there exists little evidence for an aggregate relationship between government structure and technological innovation.     

Where Else Does Turnout Decline Come From? Education,Age, Generation and Period Effects in Three European Countries

Recent research has found that voter turnout is declining in most advanced industrial countries. The trend is driven by generational replacement because the age cohorts that entered the electorate at the end of the twentieth century are voting at lower than expected rates. In North American countries, the decline is also concentrated among the poorly educated. This article examines the relative contribution of period, life-cycle, generational and educational effects on changes in electoral participation over the last four decades in Sweden, Norway and Germany with individual-level data. Turnout decline is partly driven by generational change in the countries observed as the literature suggests. Additionally, there is also a clear socio-economic correlate. Most strikingly, poorly educated persons of all age groups are increasingly failing to vote in Germany. The results suggest that the causes of the long-term evolution are multidimensional and the relative consequences vary across countries. The debate about turnout decline and its possible remedies has to take into account the fact that both members of new generations and citizens with low education attainment are the main targets of measures aimed at increasing turnout rates, but different actions might be required to attract each specific demographic group to the polls.     

Charter High Schools’ Effects on Long‐Term Attainment and Earnings

Since their inception in 1992, the number of charter schools has grown to more than 6,800 nationally, serving nearly three million students. Various studies have examined charter schools’ impacts on test scores, and a few have begun to examine longer‐term outcomes including graduation and college attendance. This paper is the first to estimate charter schools’ effects on earnings in adulthood, alongside effects on educational attainment. Using data from Florida, we first confirm previous research (Booker et al., 2011 ) that students attending charter high schools are more likely to graduate from high school and enroll in college. We then examine two longer‐term outcomes not previously studied in research on charter schools—college persistence and earnings. We find that students attending charter high schools are more likely to persist in college, and that in their mid‐20s they experience higher earnings.     

US state government privatization: Implications for social equity and inequality?

Privatization of state government services is commonplace, but our understanding of its effects is limited by data availability. We study the relationship between American state government contracting and public sector wages. Governments have used public sector employment to support a variety of goals, including social equity and economic development, but privatization, as a new public management (NPM) reform, may shift the focus. Our empirical analysis shows that state privatization of service delivery is associated with decreases in the public sector wage premium, but that these effects are not driven by gender, race, or low-levels of educational attainment. The fidelity of the implementation to NPM values conditions these effects. We also find that contracting service delivery is associated with a lower public sector wage premium for middle-class workers.     

The Effects of Tulsa's Pre‐K Program on Middle School Student Performance

As states have upgraded their commitment to pre‐K education over the past two decades, questions have arisen. Critics argue that program effects are likely to fade out or disappear over time, while supporters contend that program effects are likely to persist under certain conditions. Using data from Tulsa Public Schools, three neighboring school districts, and the state of Oklahoma, and propensity score weighting, we estimate the effects of Tulsa's universal, school‐based pre‐K program on multiple measures of academic progress for middle school students. We find enduring effects on math achievement test scores, enrollment in honors courses, and grade retention for students as a whole, and similar effects for certain subgroups. We conclude that some positive effects of a high‐quality pre‐K program are discernible as late as middle school.     

State health reform: Effects on labor markets and economic activity

Individual states are actively weighing health care reform proposals and their potential impacts on many levels, including states' own economies. This article considers the effects on state economies of two instruments of health reform: employer mandates and cost containment. The literature suggests that an employer mandate will reduce employees' wages in the long run. In the short run, however, to compensate for the costs associated with mandated health care insurance for their employees, firms may raise their prices to consumers, reduce the number of employees or allow a drop in profit margins. By increasing health care spending and the number of insured persons, mandates would also increase states' levels of economic activity. Though cost containment may dampen the stimulative effects of expanded coverage, resources not spent on health care as a result of effective cost containment might be redistributed to other sectors in a state's economy.     

Tribal Gaming and Educational Outcomes in the Next Generation

Following a series of federal policy changes and court rulings in the late 1980s, over 400 casinos owned by Native American tribes were opened throughout the United States, and expanded tribal gaming has transformed the economic development trajectories of many American Indian tribes. While most existing evaluations of tribal gaming's impacts focus on contemporaneous effects, the present paper evaluates whether the advent of tribal casinos affected educational outcomes in the subsequent generation of American Indian children. I assemble data on the adult educational outcomes of 11,647 American Indians across 36 counties who were children when a local casino was opened. I use these data to compare individuals who were relatively young at the time of a casino opening, and therefore had greater exposure to post‐gaming socioeconomic conditions, and individuals who were from the same county but were relatively old at the time of a casino opening, while also exploiting differences in the relative sizes of tribal gaming operations. Using this approach, I estimate that exposure to an average‐sized gaming operation during childhood increased adult educational attainment by .328 years and increased the probability of high school graduation and post‐secondary degree completion by 5 to 14 percent. No substantive improvements in adult educational outcomes are observed among white children from the same counties. The magnitudes of the estimates imply a relationship between family income during childhood and educational achievement that is similar to previous research within other low‐income populations.     

The effect of bicycle helmet legislation on bicycling fatalities

A number of states passed legislation in the 1990s requiring youths to wear helmets when riding bicycles. The effect of this legislation on bicycling fatalities is examined by subjecting data from the Fatality Analysis Reporting System to a panel analysis, using a control‐group methodology. A helmet law reduces fatalities by about 15 percent in the long run, less in the short run. There is no evidence of spillover effects (to adults) or substitution effects (youths choosing other methods of transportation) associated with implementation of a helmet law. Through 2000, existing helmet laws have saved 130 lives. If all states had adopted helmet laws in 1975, more than 1500 lives would have been saved. © 2004 by the Association for Public Policy Analysis and Management.     

School Vouchers and the New Politics of the Welfare State

School vouchers might seem a natural feature of the liberal welfare model of the U.S. and American society generally. However, for social democratic welfare states in Scandinavia, school vouchers would seem to be a contradiction. Nevertheless, school vouchers have faced severe resistance in the USA, and the program has so far not been adopted as a national educational reform, although sporadic and limited state‐level developments can be observed. In Sweden, however, the social democratic welfare state adopted a national, universal public voucher scheme in the early 1990s. The goal of this article is to explain this counter‐theoretical empirical puzzle. It is argued that the varying output from political processes on school vouchers in the USA and Sweden is to be explained by the different ways in which political institutions affect political decision making in the two countries.     

An effectiveness‐based evaluation of five state pre‐kindergarten programs

Since 1980, the number of state pre‐kindergarten (pre‐K) programs has more than doubled, with 38 states enrolling more than one million children in 2006 alone. This study evaluates how five state pre‐K programs affected children's receptive vocabulary, math, and print awareness skills. Taking advantage of states' strict enrollment policies determined by a child's date of birth, a regression‐discontinuity design was used to estimate effects in Michigan, New Jersey, Oklahoma, South Carolina, and West Virginia. For receptive vocabulary, only New Jersey and Oklahoma yielded significant standardized impacts, though two of the three other coefficients were in a direction indicating positive effects. For math, all the coefficients were positive but only Michigan and New Jersey yielded reliable results. The largest impacts were for print awareness, where all five coefficients were positive and four were reliable in Michigan, New Jersey, South Carolina, and West Virginia. The five states were not randomly selected and, on average, have higher quality program standards than non‐studied states, precluding formal extrapolation to the nation at large. However, our sample of states differed in many other ways, permitting the conclusion that state pre‐K programs can have positive effects on children's cognitive skills, though the magnitude of these effects varies by state and outcome. © 2008 by the Association for Public Policy Analysis and Management.     

Cream‐Skimming,Parking and Other Intended and Unintended Effects of High‐Powered,Performance‐Based Contracts

As performance‐based contracting in social welfare services continues to expand, concerns about potential unintended effects are also growing. We analyze the incentive effects of high‐powered, performance‐based contracts and their implications for program outcomes using panel data on Dutch cohorts of unemployed and disabled workers that were assigned to private social welfare providers in 2002 to 2005. We employ a difference‐in‐differences design that takes advantage of the fact that contracts gradually moved from partial performance‐contingent pay to full (100 percent) performance‐contingent contracting schemes. We develop explicit measures of selection into the programs and find evidence of cream skimming and other gaming activities on the part of providers, but little impact of these activities on program outcomes. Moving to a system with contract payments fully contingent on performance appears to increase job placements, but not job duration, for more readily employable workers.     

Do two-year colleges increase overall educational attainment? Evidence from the states

Are two- or four-year colleges more efficient at increasing the educational attainment of young adults? I use state variation in two- and four-year college systems to address this question at the state level. I find that the composition and cost of higher education in a state affect the enrollment decisions of individuals in that state. Further, attending a two-year rather than a four-year college may lower the educational attainment of some students, but more students will benefit from the community college alternative. It also most likely costs the state more to educate a student in a four-year rather than a two-year college. As a result, community colleges provide a potentially efficient way to increase access to higher education as well as increase the overall educational attainment of a state's residents.     

Is full better than half? Examining the longitudinal effects of full‐day kindergarten attendance

Kindergarten policy varies widely both across and within states. Over the past decade, a number of states have instituted a full‐day kindergarten requirement and others are considering it as a way to increase educational achievement. Many parents also support full‐day kindergarten as a source of child care. This paper uses the Early Child Longitudinal Study–Kindergarten Class of 1998–1999 to evaluate the efficacy of this policy. In ordinary least squares, probit, county fixed effects, and instrumental variables models, we find that there are initial benefits for students and the mothers of students who attend full‐day kindergarten, but that these differences largely evaporate by third grade. Contrary to claims by some advocates, attending full‐day kindergarten is found to have no additional benefit for students in families with income below the poverty threshold. © 2006 by the Association for Public Policy Analysis and Management