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Reducing Inequality through Dynamic Complementarity: Evidence from Head Start and Public School Spending
Author(s) -
Rucker C. Johnson,
C. Kirabo Jackson
Publication year - 2019
Publication title -
american economic journal economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 7.868
H-Index - 62
eISSN - 1945-7731
pISSN - 1945-774X
DOI - 10.1257/pol.20180510
Subject(s) - head start , earnings , complementarity (molecular biology) , poverty , demographic economics , economics , inequality , educational attainment , labour economics , public spending , psychology , economic growth , political science , finance , developmental psychology , mathematical analysis , mathematics , biology , genetics , politics , law
We compare the adult outcomes of cohorts who were differentially exposed to policy-induced changes in Head Start and K–12 spending, depending on place and year of birth. IV and sibling-difference estimates indicate that, for poor children, these policies both increased educational attainment and earnings, and reduced poverty and incarceration. The benefits of Head Start were larger when followed by access to better-funded schools, and increases in K–12 spending were more efficacious when preceded by Head Start exposure. The findings suggest dynamic complementarities, implying that early educational investments that are sustained may break the cycle of poverty. (JEL H52, H75, I21, I26, I28, I32, I38)

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