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ERIC Number: ED024877
Record Type: Non-Journal
Publication Date: 1967
Pages: 15
Abstractor: N/A
Reference Count: N/A
Cost-Effectiveness Analysis for the "War on Poverty."
Besen, Stanley M.; And Others
Two anti-poverty programs--investment in education and in highways and other public facilities--should increase earnings and employment through an increase in production possibilities and a fuller utilization of existing resources. In evaluating training programs, there is considerable evidence that training expenditures have a return at least equal to that on other forms of capital investment; the return has both private and social components, and there are direct and opportunity costs to consider. In a Massachusetts retraining program from 1958-61 the "net benefits accruing to society" were evaluated as about $3300 per worker; a similar study in West Virginia showed net returns of about $4000 per worker. The Job Corps and the Neighborhood Youth Corps cannot be judged properly by studying returns to other training programs, since these two programs differ significantly from others. New highways have benefits in real output and employment, new industry, and an increase in land values. There are many questions relating to cost analysis in highway construction which cannot be answered adequately at present. Until programs can be evaluated effectively, large scale financial commitments should not be made; programs should be adequately diversified and steps for evaluation should be set up. (jf)
Publication Type: N/A
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A