HOUSE_OVERSIGHT_024495.jpg
1.13 MB
Extraction Summary
1
People
4
Organizations
0
Locations
1
Events
1
Relationships
2
Quotes
Document Information
Type:
Report / investment analysis / business plan
File Size:
1.13 MB
Summary
This document appears to be page 62 of a business report or pitch deck (marked with a House Oversight Bates stamp). It argues for the economic value of Early Childhood Education (ECE) using U.S. Census Bureau data on lifetime earnings and studies by economist James Heckman. The text concludes by stating that KUE (Knowledge Universe) has made its largest initial investment in KLC (Knowledge Learning Corp) based on these economic principles.
People (1)
| Name | Role | Context |
|---|---|---|
| James Heckman | Economist |
Nobel Prize winner from University of Chicago whose study is cited to justify early childhood education investment.
|
Organizations (4)
| Name | Type | Context |
|---|---|---|
| KUE |
Company making an investment (Likely Knowledge Universe Education).
|
|
| KLC |
Target of investment, described as the largest company serving the ECE market in the world (Likely Knowledge Learning...
|
|
| U.S. Census Bureau |
Source of data for wage disparity statistics.
|
|
| University of Chicago |
Affiliation of James Heckman.
|
Timeline (1 events)
August 2002
Study published by James Heckman regarding returns on education investment.
University of Chicago
Key Quotes (2)
"The rate of return to a dollar investment made while a person is young is higher than the rate of return to the same dollar made at a later age"Source
HOUSE_OVERSIGHT_024495.jpg
Quote #1
"KUE has made its largest initial investment in KLC, the largest company serving the ECE market in the world."Source
HOUSE_OVERSIGHT_024495.jpg
Quote #2
Full Extracted Text
Complete text extracted from the document (1,572 characters)
As shown below, an individual with a professional degree earns approximately 100% more than a college graduate and an individual with a bachelor’s degree earns approximately 70% more than a high school graduate in their lifetime.
[Chart: Education and Wage Disparity: Lifetime Earnings (Ages 18–64)]
(in millions)
$6.0
$5.0
$4.2 $5.3
$4.0
$3.0
$2.3 $2.7
$2.0
$1.4 $1.6
$1.0
$0.0
1991 1995 1999 2003
— Professional Degree — Bachelor's Degree — High School Diploma
(in millions)
$6.0
$5.0
$4.2 $5.3
$4.0
$3.0
$2.3 $2.7
$2.0
$1.4 $1.6
$1.0
$0.0
1991 1995 1999 2003
— Professional Degree — Bachelor's Degree — High School Diploma
Source: U.S. Census Bureau.
Despite the results of the study shown above, 35% of Americans over the age of 18 have not graduated high school. Only one-third of the 25% of Americans who have received a bachelor’s degree, or 8%, have received a graduate degree.16
Studies by Nobel Prize winning economist James Heckman suggest that the highest rate of return within education is generated through an investment in early childhood programs. Heckman’s study asserts, “The rate of return to a dollar investment made while a person is young is higher than the rate of return to the same dollar made at a later age,” as illustrated below:
[Chart: Curve Graph]
Return
Preschool Programs
School
Opportunity Cost of Funds
Job Training
Preschool School Post School
Age
Source: August 2002 study, James Heckman, University of Chicago.
Return
Preschool Programs
School
Opportunity Cost of Funds
Job Training
Preschool School Post School
Age
Source: August 2002 study, James Heckman, University of Chicago.
Due to the high rate of return of investments in ECE and the principles underlying the theory of human capital, KUE has made its largest initial investment in KLC, the largest company serving the ECE market in the world.
16 Source: U.S. Census Bureau.
62
HOUSE_OVERSIGHT_024495
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