Tag Archives: multiplier effect

Pre-K is Good for Pennsylvania Business

Pre-K for PA Infographic

Pre-K for PA Infographic

Pre-K for PA released a report prepared by ReadyNation/America’s Edge which shows the economic boost that prekindergarten investments can generate in the state economy.  For each dollar invested in pre-k in Pennsylvania, a total of $1.79 in economic activity is generated in the state.

The report also estimates that if Pennsylvania invested funding in pre-k to provide access for all 3- and 4-year-olds in the Commonwealth, that investment would generate an additional $800 million in goods and services outside the early learning services sector.  This additional $800 million would be generated in the following major Pennsylvania sectors as follows:

  • Chart showing sectors of the economy with additional investments in early learningprofessional, business and other services (23%);
  • insurance, money and finance (18%);
  • construction and real estate (17%);
  • retail and wholesale trade (13%);
  • health services (12%); and
  • other sectors (17%).

Pre-K for PA is an issue campaign in support of access to high-quality pre-k for every 3- and 4-year-old in Pennsylvania.  Its founding organizational members are key early childhood and children’s organizations (Pennsylvania Partnerships for Children, Public Citizens for Children and Youth, the Pennsylvania Head Start Association, PennAEYC, PAEYC, and DVAEYC) and supporters of pre-k investments (Fight Crime: Invest in Kids, The United Way of Greater Philadelphia and Southern New Jersey, Mission: Readiness, and the Economy League of Greater Philadelphia).

This report is one in a series of reports by ReadyNation I co-authored which document the potential economic impact of investments in early learning.

Edited to add:  Press coverage of the report:

 

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Filed under early childhood education, Pennsylvania, state policy, Uncategorized

Early Learning Investments Can Help Kids AND the Economy

Report cover image

Those of us working on children’s issues know that investing in high-quality early learning for young children pays off over the long run, with better academic performance in school, increased rates of employment, and decreased involvement with crime.  Less well known are the impressive short-term benefits of early learning for the local economy.

The business leaders’ organization ReadyNation/America’s Edge released a report today, which I contributed to, illustrating the short-term economic activity that can be generated by early learning in Illinois.   As the report states:

For every $1 invested in early care and education in Illinois, an additional 94 cents are generated, for a total of $1.94 in new economic activity in the state.  This strong economic boost for local businesses is higher than investments in other major sectors such as transportation, retail trade and manufacturing.  This strong economic boost for local businesses is higher than investments in other major sectors such as manufacturing ($1.79), transportation ($1.91) and retail trade ($1.93).

While investments in any industry generate additional economic activity, what’s impressive here is that the early learning sector has one of the highest “multiplier effects” in the local economy compared to other major sectors.  Although the figures cited here are specific to Illinois, the same general pattern holds true across the country, with the early learning sector at or near the top compared to other major sectors.

Early learning promotes economic development.  Not only does it help kids get the right start in life, it generates additional economic activity in the local economy which benefits businesses and our communities. When policymakers are faced with tough budget choices, its good to know that early learning is an investment that can help children learn, help parents work and help grow the economy.

The press release for the report.

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Filed under early childhood education, Early Ed Quality, Illinois, state policy, Uncategorized