Government-funded early childhood investments reduce inequality by 20% and improve mobility by 60%.
The article shows that investing in children's early development can reduce inequality and improve social mobility. By simulating a model, researchers found that a government program funding early childhood investments could decrease inequality by 20% and boost mobility by 60%. This approach would also lead to a three times larger welfare increase compared to direct government transfers. Implementing these investments as a short-term policy trial would underestimate their benefits significantly. By running a temporary deficit to support these investments, the government can enhance the welfare of future generations.