{"id":31058,"date":"2022-11-01T12:32:08","date_gmt":"2022-11-01T20:32:03","guid":{"rendered":"https:\/\/staging2.threadalaska.org\/thread\/business-community\/return-on-investment-copy\/"},"modified":"2023-06-14T10:52:02","modified_gmt":"2023-06-14T18:52:02","slug":"return-on-investment","status":"publish","type":"page","link":"https:\/\/www.threadalaska.org\/thread\/policy-and-research\/take-action\/return-on-investment\/","title":{"rendered":"Return on Investment"},"content":{"rendered":"\n
With a 13 percent ROI in societal benefits, and billions of dollars in savings from increased employee productivity, high-quality early childhood education is a smart business investment. <\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n
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The latest research by Nobel Prize-winning University of Chicago economics professor James Heckman<\/a> shows that investment in high-quality early childhood education for disadvantaged children, beginning at birth, delivers a 13 percent return on investment per child<\/strong>, per year. By contrast, the stock market averages 7 percent ROI. Heckman points to four big benefits of investing in early childhood development: preventing the achievement gap, improving health, boosting earnings, and a high rate of return. Access to high-quality early childhood education benefits not only the future generation, but it strengthens the current workforce as well. Research shows that businesses lose $3 billion each year when employees miss work due to child care breakdowns.<\/p>\n\n\n\n Additionally, researchers in Louisiana determined that the state loses almost $84 million annually in tax revenue for Louisiana\u2019s economy due to child care issues (Losing Ground: How Child Care Impacts Louisiana\u2019s Workforce Productivity and the State Economy<\/a>).<\/p>\n\n\n\n Early childhood education plays a crucial role in Alaska\u2019s economy as well. The McDowell Group reports in the 2020 Economic Impact of Early Care and Learning in Alaska Report<\/a> that 15 percent of Alaska\u2019s workforce depends on child care. And as a result of access to child care, Alaskans are able to earn $2 billion in wages. In all, the early childhood education industry accounts for $512 million in total economic activity in Alaska. The Committee for Economic Development (CED)<\/a>, a business-led national policy group, also reports that the Alaska child care industry revenue of $83.1 million led to another $50 million in spillover impact on our economy. <\/p>\n\n\n\n With a 13 percent ROI in societal benefits, and billions of dollars in savings from increased employee productivity, high-quality early childhood education is a smart business investment. <\/p>\n\n\n\n
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