Net Present Value of Main Components of the Life-Cycle Benefit/Cost Analysis,
Carolina Abecedarian Project
Note: Program costs: the total cost of ABC/CARE, including the welfare cost of
taxes to finance it. Total net benefits: for all of the
components considered. These include labor income: total individual labor income
from ages 20 to the retirement of program participants (assumed to be at age
67). Parental income: total parental labor income of the parents of the
participants from when the participants were ages 1.5 to 21. This arises from
subsidizing childcare. Crime: the total cost of crime (judicial and
victimization costs). Health: gain corresponding to better health conditions
until predicted death.
Source: Garcia et al.8