E C O N O M I C R E P O R T O F T H E P R E S I D E N T

equirements of jobs. To right this balance, the Administration has madeimproving education one of its highest priorities (Box 4-3).Greater Access to Preschool Education: The Head Start ProgramResearch demonstrates that the early preschool years, when human abilityand motivation are being shaped, are critical for skill formation. Developmentalprograms that intervene early in life have been shown to be more costeffectivethan later attempts at remediation. One such program is Head Start,which since 1965 has provided comprehensive developmental services forAmerica’s low-income preschool children as well as social services for theirfamilies. These services focus on fostering intellectual, social, and emotionalgrowth as well as providing a comprehensive health program. Since 1993,funding for Head Start has nearly doubled, to $5.3 billion in 2000. The additionalfunds have enabled Head Start to increase its enrollment from 714,000to 877,000 children since 1993 and to enhance the quality of its services. ThePresident’s 2001 budget proposes a $1 billion increase in this program.Although conclusive evidence is limited, two recent studies have shown theeffectiveness of Head Start. A 1995 study used a nationally representative dataset to compare children who had participated in the program with their siblingswho had not. This methodology allowed the researchers to control for manyconfounding factors that they could not observe but that may be related to outcomes.The study found significant and persistent effects of Head Start in148 | Economic Report of the President