Investing in Early Learning as Economic Development at the Minneapolis Federal Reserve Bank Harvard Case Solution & Analysis

Shade cases should be printed in color, to maximize their effectiveness. The thesis was pretty clear-cut; early childhood development (ECD) had the highest returns so states and local governments should invest in it. But the idea of investing in ECD for economical development was new and had never been tested on a large scale, particularly in the manner that Rolnick and Grunewald advocated in a later paper - utilizing market forces to drive demand for the high-quality ECD program.

The Minnesota Early Learning Foundation (MELF), created in 2005, invested in two ventures intended to examine the economists' recommendations. The St. Paul Early Childhood Scholarship Program (SPECSP) supplied up to $13,000 a year per kid for parents in two St. Paul areas to choose a high-quality ECD program of their choice. MELF had also invested in Five Hundred Under 5 (FHU5), a Minneapolis plan formed to enhance the ability and quality of suppliers. Comparing SPECSP to FHU5 would offer insights on the potential impact of supply-side versus demand-side ECD initiatives. Rolnick reflected on the two MELF experiments. Which would be more efficient? Would parents in St. Paul actually drive up the quality of suppliers through the selections they made or was it better to work with providers directly to enhance quality?

PUBLICATION DATE: February 23, 2009 PRODUCT #: 309090-HCC-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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