The Business Case for Investing in Early Childhood Development Roy Bostock, Vice Chairman, Delta Airlines Member, ReadyNation/America s Edge
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1 The Business Case for Investing in Early Childhood Development Roy Bostock, Vice Chairman, Delta Airlines Member, ReadyNation/America s Edge ReadyNa'on/America s Edge is a project of Council for a Strong America
2 Agenda Why do I and my business colleagues care early childhood? What s the solution? What are business leaders doing about it? How can ReadyNation/America s Edge help you? April 22,
3 Why should business care? Because the first step in the process of producing globally competitive adults is to produce school-ready five-year-olds. 3
4 Jobs of the future require more education by 2020, 2/3 will require more than a high school diploma 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 7% 10% 11% 11% 9% 12% 19% 21% 24% 8% 10% 12% 40% 19% 17% 18% 34% 30% 24% 32% 10% 11% 12% Master's Degree or Better Bachelor's Degree Associate's Degree Some College/No Degree High School Diploma Less than High School Source: Carnevale, Anthony P.; Smith, Nicole; and Jeff Strohl. Recovery, Job Growth and Education Requirements Through June Georgetown University. April 22,
5 Creating this workforce (and customer base) requires investing early... 90% of brain growth occurs by age five. Disadvantaged children can show up at kindergarten already 18 months behind and knowing half as many words. If children start school ready to learn, they are twice as likely to read at grade level by third grade. If children read at grade level by third grade they are 4 times more likely to graduate from high school. If U.S. children graduate from high school, on average they will earn $500k more, live 9 years longer and be 6 times less likely to be arrested. In OECD countries, similar gain is $250k for men, $150k for women April 22,
6 The achievement gap emerges by age two 1200 Cumulative Vocabulary (Words) College Educated Parents Working Class Parents Welfare Parents 16 mos. 24 mos. 36 mos. Child s Age (Months) Source: Hart, B., & Risley, R. T. (1995). Meaningful differences in the everyday experience of young American children. Baltimore: Paul H. Brookes. 6
7 What s the solution? Special Education 31% 34% 49% 65% Impact of High Quality Early Learning Programs Grade Repeater 51% 67% HS Graduation 13% Four Year College Program Group No-program Group 36% Barnett, W. S., & Masse, L. N. (2007). Early childhood program design and economic returns: Comparative benefit-cost analysis of the Abecedarian program and policy implications, Economics of Education Review, 26, ; Campbell, F.A., Ramey, C.T., Pungello, E., Sparling, J., & Miller-Johnson, S. ( 2002). Early childhood education: Young adult outcomes from the Abecedarian Project. Applied Developmental Science, 6(1), April 22,
8 Cost/benefit analyses show positive returns for proven strategies $10 $9.20 $8 $6 $4 $3.23 $5.70 Total Return per $1 Invested $2 Break-Even Point 0 Abecedarian Project (early care and education aged 0-5) Nurse Family Partnership (home visiting prenatal age 2 for high risk group) Perry Preschool (early education age 3-4) Data Sources: Heckman et al. (2009) Karoly et al. (2005) Graph Courtesy: Center on the Developing Child at Harvard University 8
9 2000 Nobel Laureate in Economics: Rate of return to investments in human capital by age Programs targeted at earliest years Preschool programs Primary, secondary schooling and college Job training Source: James Heckman, 2000 Nobel Laureate in Economics. Schools, Skills, and Synapses, Economic Inquiry, April 22,
10 Early learning helps create the STEM workforce Science magazine: Preschool children s knowledge of mathematics predicts their later school success it predicts later reading achievement even better than early reading skills. CEO of Change the Equation: Early childhood STEM programs can counteract the destructive and persistent belief that math is for boys. Wall Street Journal: Evidence is mounting about the importance of teaching math in preschool and kindergarten. CEO of DuPont, Ellen Kullman, The path to STEM education starts early, before kindergarten. April 22,
11 What are U.S. business leaders doing? Ken McNeely, President, AT&T California Prof. James Heckman, 2000 Nobel Laureate in Economics John Pepper, former CEO, Procter & Gamble Jim Zimmerman, former CEO, Macy s Steve Voigt, King Arthur Flour Anne Mulcahey, former CEO, Xerox JD Chesloff, Massachusetts Business Roundtable Gary Toebben, CEO, Los Angeles Chamber of Commerce James Rohr, Executive Chairman, PNC Financial Services Group Ben Bernanke, Chairman, Federal Reserve Alan Weber, Founder, Fast Company Gary Kai, Executive Director Hawai i Business Roundtable Larry Kellner, former CEO, Continental Airlines George Kaiser, GBK Corporation Billy Canary, CEO Business Council of Alabama Hugh McDonald, President and CEO, Entergy Arkansas Dave Adkisson, CEO Kentucky Chamber of Commerce Dick Wilkerson, former CEO, Michelin North America 11
12 Business roundtables and chambers supported early childhood in almost every state in the U.S. Source: Championing Success: Business Organiza5ons for Early Childhood Investments ReadyNa'on. April 22,
13 What else are business leaders doing? Hosting events with their professional associations to share the message about the importance of early childhood Sharing information with employees Contributing time, resources, volunteers to local organizations Encouraging their local business organizations (Rotary, chambers) to develop formal positions on the benefits of effective early childhood programs Communicating with their elected and appointed officials. Send messages individually and joint letters. November 2013 Panel at Republican Governors Association meeting. Talking to the media print, radio, Web April 22,
14 They are speaking to media and policymakers Businesses Urged To Invest in Kids By Polly Summar Journal Staff Writer November 06, 2009 If New Mexico doesn't invest in human capital the education of its children it will see two inevitable results: External capital won't want to invest here, and talented young adults in New Mexico will want to move out. Those stinging words Thursday came from Robert H. Dugger, a financial manager who warned that the business community needs to get involved with state policies toward education. He spoke to some 200 New Mexico business and 14
15 They are supporting local early child programs Partner With National Non-Profits Merck & Reach Out and Read: Employee Volunteer Reader Program in medical sites Contribute Topic Area Expertise National Grid s STEM Kit for Teachers Partnered with Boston Children s Museum to create a STEM teaching kit Kits are used in early childhood settings Develop Creative Finance Tools The Erie s Future Fund Scholarship fund for public and private, quality early learning centers Nebraska Early Education Endowment (Sixpence) $40 million from the state /$20 million private Funds high quality 0-3 parenting and child care programs April 22,
16 ReadyNation/America s Edge: business leaders improving the economy through effective investments in children Support to business coalitions in U.S. and internationally Summits plus followup Bruce E.L.M. Strothers, Managing Counsel, The Coca-Cola Company Endorsements from professional associations Public statements New research 16
17 How can ReadyNation/America s Edge help you? q Newly-merged entity creates the pre-eminent American business group supporting early childhood development q New project to share ReadyNation experiences in the Netherlands, Brazil and Uganda q Become a member no cost or obligation, just consider requests to take action. You get: q Support for speaking out: Media pieces, PowerPoint slides, data, talking points q Connections with American companies active on early childhood q Materials to make the business case q Ideas for on-the-ground projects at April 22,
18 For more information or help Dr. Sara Watson National Director ReadyNation/America s Edge 1212 New York Avenue NW, Suite 300 Washington, D.C swatson@readynation.org April 22,
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C. Students will be responsible for purchasing materials needed for student presentation.
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