write the impact of anti poverty programs
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1. Early childhood education programs increase earnings and educational attainment.
Two famous randomized trials of relatively small, intensive early education programs targeted to disadvantaged young children were the Abecederian Project and the High/Scope Perry Preschool Study. Both of these programs conducted multiple follow-up surveys of these children through secondary school and into adulthood. A number of studies found that children from these programs saw higher high school graduation and college attendance rates and greater adult earnings, and Perry also showed lower involvement with the criminal justice system. CEA recently summarized this work and concluded early education programs yield positive net benefits of up to $8.60 for every dollar spent.2. The Earned Income Tax Credit improves early health outcomes, and increases academic achievement and college attendance.
The Earned Income Tax Credit (EITC) provides a refundable tax credit to lower-income working families. A family’s credit amount is based on the number of dependent children and its earnings. A long literature shows that the EITC increases labor force participation among single mothers. This work relies on quasi-experimental methods, often comparing families that became eligible for a (larger) credit with families with similar observable characteristics that were ineligible
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