To prepare children from low-income families for school success, U.S. policy and funding has focused on Head Start and universal pre-kindergarten, writes Brookings’ Russ Whitehurst. But research shows that giving more money to low-income parents is more cost effective, he writes.
The Earned Income Tax Credit, which raises the income of low-income working parents, is more effective than providing free pre-K for four-year-olds, he writes. The chart also shows the modest effects of class-size reduction and Head Start.
Northern European countries focus on supporting family incomes rather than providing preschool or pre-K, writes Whitehurst. “A policy midpoint” could be giving families more money, but limiting it to expenditures on their young children. He envisions something like food stamps.
In Finland, working parents of young children can choose from a variety of child-care providers or “opt to receive a financial subsidy that allows them to reduce their work hours in order to be home more with their child,” he writes. “They can also take unpaid leave.” The rate of enrollment in child-care centers is very low for children under four.