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The Cost-Effectiveness of Early Interventions

January 12, 2023 by Horacio Álvarez Marinelli - Samuel Berlinski - Matías Busso - Julian Martinez-Correa Leave a Comment


There are few things more important for children to master than literacy: the skills of reading and writing that enable them to learn other subjects, participate politically, protect their health, and enter the labor market with promising prospects. Yet about 20 percent of the global adult population is illiterate, and in Latin America, two-thirds of children do not achieve the minimum levels of literacy expected for their age.

The question for educational policy is twofold. Can we improve our teaching and learning of languages in early grades so that fewer children fall behind? How can we help those children who despite our current efforts are failing to read at grade level?

Ministers of finance, concerned about the resources needed to help children struggling with literary will also ask where limited resources are best spent, improving learning for all or targeting resources to those falling behind.

Early interventions are predicated on the fact that they achieve greater gains than comparable remedial interventions later in life. However, we often don’t know what such programs would look like, what their benefits would be, and how much they would cost. In many situations, reaching valid conclusions is difficult: Measures of learning outcomes or the setting in which the effects of different interventions are studied are not strictly comparable.

Two Literacy Interventions in Colombia

The Inter-American Development Bank together with Fundación Luker conducted two literacy interventions in the same primary schools in Manizales, Colombia, a setting that allowed us to gather sound empirical evidence and get to the heart of these questions. We started with a remediation program designed to enhance literacy skills in  about a quarter of third grade students in the schools, students who were struggling readers. Based on a phonics approach to reading, the program consisted of 40-minute structured tutorial sessions provided three times a week to small groups. The program lasted 16 weeks, cost $89 per student, and produced gains in literary of 27 learning points.  

The second intervention, implemented independently at a later date in the same schools, focused on improving teachers’ pedagogical strategies, but starting earlier, in the first grade. It offered in-service professional development for teachers who received intense, in-person training for two weeks, followed by continuous, in-class coaching visits throughout the school year. Moreover, it incorporated the development and distribution of complementary teaching materials, including books for teachers, and workbooks and storybooks for students. It produced gains of literacy of 37 learning points at a cost of $36 per student.

Cost Effectiveness

If one considers progress in terms of an overall $100 dollar investment per student, the second intervention, implemented for younger students, was more than five times more cost effective than the first one, revealing the benefits of early literacy training. Its cost-effectiveness can also be seen in the fact that students who received it were 27% less likely to need remediation at the third-grade level. Many governments in the region face the challenge of having to tackle a pressing learning crisis in a context of tight fiscal constraints. Effective early interventions prevent learning gaps from forming in the first place and reduce the need for later remediation, though that should always remain an option for the smaller subset of students that still need it..


Filed Under: Microeconomics and Competitiveness Tagged With: #education

Horacio Álvarez Marinelli

Horacio Álvarez Marinelli is a senior education specialist. He joined the Inter-American Development Bank (IDB) in July 2008 and is currently working at the IDB Country Office in Panama. Before being assigned to Panama, he was in charge of the education portfolios of Bolivia, Colombia, Costa Rica, Guatemala, and the Dominican Republic. Horacio served as Financial Director of the Programa Nacional de Autogestión para el Desarrollo Educativo of the Ministry of Education of Guatemala. He has also served as Officer in Charge of Finance and Accounting and Secretary of the Pension Fund of the Inter-Parliamentary Union, based in Geneva, Switzerland. Subsequently, from 2004 to 2008, he was Advisor to the Office of the Minister of Education, in charge of the modernization of the Planning and Finance Area and Director of Educational Planning of the Ministry of Education of Guatemala. He holds a Bachelor's degree in Economics and a Master's degree in Administration and Public Policy from the Lyndon B. Johnson School of Public Affairs, University of Texas at Austin, under the auspices of the Fullbright scholarship.

Samuel Berlinski

Samuel Berlinski is a Lead Economist at the Research Department of the Inter-American Development Bank. Prior to joining the Bank in 2010, he was an Assistant Professor of Economics at University College London and previously held appointments at Universidad de San Andrés and the London School of Economics. His work has appeared in numerous journals including the Journal of Public Economics, Journal of Law and Economics and Economic Development and Cultural Change. His research at the Bank focuses on the evaluation of public policy, with particular emphasis on Education, Health and Labor Markets. He completed his undergraduate studies in Economics at Universidad de Buenos Aires and obtained a Ph.D. in Economics at the University of Oxford, Nuffield College.

Matías Busso

Matias Busso is a Lead Economist in the Research Department at the Inter-American Development Bank. He is also a Research Fellow at the Center for Distributive, Labor and Social Studies (CEDLAS) and a member of the executing committee of the Network of Inequality and Poverty of LACEA. His research uses empirical evidence and theory to inform the design of more effective public policies in areas related to labor, education, and productivity. Matias received his Ph.D. in Economics from the University of Michigan in 2008. He has published articles in the American Economic Review and The Review of Economics and Statistics, among others.

Julian Martinez-Correa

Julian Martinez-Correa is a Research Assistant in the Research Department of the Inter-American Development Bank. He is also an Associate Economist at the Center for Distributive, Labor, and Social Studies (CEDLAS) in La Plata, Argentina. His research interests are development economics, labor economics and economics of education, among others. He holds a master’s degree in Economics from the National University of La Plata and a bachelor's degree from the University of Buenos Aires.

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