Chile Crece Contigo (ChCC), which translates to Chile Grows with You, is a comprehensive early childhood protectionism system introduced in 2007 by the Chilean government. The goal of the program was to reduce inequality during the first years of children’s lives by supporting all children and their families in an integrated manner. Children are enrolled in the program beginning at their mother’s first prenatal appointment and ending at age nine. Enrollment is compulsory and universal.
ChCC services begin during gestation. Expecting mothers are offered regular health check-ups and personalized health plans, parental educational programs, and materials for newborn socio-psychological stimulation. In 2009, ChCC increased the number of preschools and kindergartens with extended hours from 484 facilities to 655 facilities. Centers offered parental education and special educational programs for rural children. Early childhood education was free for the children in the bottom 40th percentile of income or non-income vulnerabilities, and families considered to be socioeconomically vulnerable were given priority access to other services offered by the public sector.
Rude (2024) employs a regression discontinuity design (RDD) to identify the impacts of ChCC on schooling outcomes 12 years after it was introduced. The paper finds the exposure to the program increased standardized math scores by 0.883 points, standardized reading scores by 2.059 points, and grade point averages by 0.03 points. These estimated increases are all higher for boys than girls, and are all lower for economically vulnerable children. Rude (2024) estimates the MVPF of ChCC.
Pays for Itself
The average unit cost of administering ChCC is $1,399.20. The paper distributes this cost over the average Chilean lifespan and discounts the value back to age zero assuming a discount rate of 3 percent for a present value of the average unit costs of $761.20.
French et al. (2015) estimates that a 1 percent increase in GPA corresponds to an average increase in income between 12 and 14 percent. Rude (2024) finds a 0.53 percent average increase in GPA as a result of ChCC, corresponding to a 7.5% average expected increase in income after incorporating the estimate from French et al. (2015). This increased income corresponds to an additional present value of $1,156.60 in tax revenue per participant, assuming an income tax rate of 7 percent. The net cost of ChCC is then $761.20-$1,156.60=-$395.40.
As noted above, Rude (2024) estimates that ChCC results in a 7.5% average expected increase in income. The mean present value of earnings of individuals in Chile in 2017 between ages 18 and 64 is estimated to be $220,312.40. Beneficiaries’ lifetime earnings would be expected to increase by $220,312.40 * 7.5% = $16,523.43 as a result of Chile Creece Contigo.
The MVPF of Chile Creece Contigo is infinite given a positive willingness to pay and a negative net cost.
French, Michael T., Jenny F. Homer, Ioana Popovici, and Philip Robins (2015). “What you do in high school matters: high school GPA, educational attainment, and labor market earnings as a young adult.” Eastern Economic Journal, 41(3): 370-386. https://econpapers.repec.org/article/paleaseco/v_3a41_3ay_3a2015_3ai_3a3_3ap_3a370-386.htm
Rude, Britta (2024). “Middle-run educational impacts of comprehensive early childhood interventions: evidence from a pioneer program in Chile.” Journal of Population Economics, 37, 38. DOI: https://doi.org/10.1007/s00148-024-01011-0