Public Investments in Early Childhood Education and Academic Performance

ABSTRACT

Do early childhood investments for low-income children narrow the academic achievement gap in elementary school? I study this question in the context of Head Start by using a new variation in federal funding expansions across counties in the 1990s. Using student-level data from Texas, I find that exposure to more generous Head Start funding during childhood significantly improved test scores, particularly for low-income Hispanic students. Hispanics benefited from funding expansions through increased access to Head Start and improvements in program inputs. These advances enhanced their language proficiency and reduced the likelihood of their special education needs during elementary school.