In his role as Senior Vice President and Director of Research at the Federal Reserve Bank of Minneapolis (Minneapolis Fed), Art Rolnick and his colleague Rob Grunewald, had “. Economic development with a high public return early childhood development” The written work was fairly straightforward; early childhood development (ECD) had the highest returns as state and local governments should invest in them. But the idea of ​​investing in ECD for economic development was new and had never been th … Read more »

In his role as Senior Vice President and Director of Research at the Federal Reserve Bank of Minneapolis (Minneapolis Fed), Art Rolnick and his colleague Rob Grunewald, had “. Economic development with a high public return early childhood development” The written work was fairly straightforward; early childhood development (ECD) had the highest returns as state and local governments should invest in them. But the idea of ​​investing in ECD for economic development was new and had been never tested on a large scale, especially in the way that Rolnick and Grunewald recommended in a later paper – use of market forces to meet the demand for high quality go ECD programs. The Minnesota Early Learning Foundation (MELF), founded in 2005, developed in two projects invested to test recommendations of economists. The St. Paul Early Childhood Scholarship Program (SPECSP) provided up to $ 13,000 per year per child for the parents in two districts of St Paul to choose a high-quality ECD program of their choice. MELF had also invested in Five Hundred under 5 (FHU5), a Minneapolis program was formed to improve the capacity and quality of providers. SPECSP compares to FHU5 would provide insights into the potential impact on the supply side, demand side against ECD initiatives. Rolnick reflected on the two MELF experiments. What would be more effective? Would parents in St. Paul really drive the quality of providers through the choices they made or was it better to work directly with providers to improve the quality?
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from
Stacey Childress,
Geoff Marietta
Source: Harvard Business School
31 pages.
Release Date: 23 February 2009. Prod #: 309090-PDF-ENG
Investing in Early Learning as Economic Development at the Minneapolis Federal Reserve Bank HBR case solution