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This paper reviews the problems and potential benefits of integrating personality psychology into economics. Economists have much to learn from and contribute to personality psychology.

We report the labor market effects of the Jamaica Early Childhood Stimulation intervention at age 31. The study is a small-sample randomized early childhood education stimulation intervention targeting stunted children living in the poor neighborhoods of Kingston, Jamaica. Implemented in 1987-1989, treatment consisted of a two-year home-based intervention designed to improve nutrition and the quality of mother-child interactions to foster cognitive, language and psycho-social skills. The original sample is 127 stunted children between 9 and 24 months old. Our study is able to track and interview 75% of the original sample 30 years after the intervention, both still living in Jamaica and migrated abroad. We find large and statistically significant effects on income and schooling; the treatment group had 43% higher hourly wages and 37% higher earnings than the control group. This is a substantial increase over the treatment effect estimated for age 22 where we observed a 25% increase in earnings.

This paper examines the long-term impacts on health and healthy behaviors of two of the oldest and most widely cited U.S. early childhood interventions evaluated by the method of randomization with long-term follow-up: the Perry Preschool Project (PPP) and the Carolina Abecedarian Project (ABC). There are pronounced gender effects strongly favoring boys, although there are also effects for girls. Dynamic mediation analyses show a significant role played by improved childhood traits, above and beyond the effects of experimentally enhanced adult socioeconomic status. These results show the potential of early life interventions for promoting health.

Educational equity is often discussed as a moral issue. Another way to think about equity is as a way to promote productivity and economic efficiency. Traditionally, equity and efficiency are viewed as competing goals. One can be fair in devising a policy, but it often happens that what is fair is not economically efficient. Conversely, what is efficient may not be fair. What is remarkable is that there are some policies that both are fair--i.e., promote equity--and promote economic efficiency. Investing in the early years of disadvantaged children's lives is one such policy. A large body of data from economics, biology, and psychology shows that educational equity is more than a social justice imperative; it is an economic imperative that has far-reaching implications for the nation. Taking a hard look at the economic value of efforts to create human capital helps people see where best to invest their resources in education to achieve its ideal--equalizing opportunity to build greater and enduring value for all. The evidence is quite clear that inequality in the development of human capabilities produces negative social and economic outcomes that can and should be prevented with investments in early childhood education, particularly targeted toward disadvantaged children and their families. (Contains 2 footnotes and 11 endnotes.)

We find large effects on the earnings of participants from a randomized intervention that gave psychosocial stimulation to stunted Jamaican toddlers living in poverty. The intervention consisted of one-hour weekly visits from community Jamaican health workers over a 2-year period that taught parenting skills and encouraged mothers to interact and play with their children in ways that would develop their children's cognitive and personality skills. We reinterviewed the study participants 20 years after the intervention. Stimulation increased the average earnings of participants by 42 percent. Treatment group earnings caught up to the earnings of a matched non-stunted comparison group. These findings show that psychosocial stimulation early in childhood in disadvantaged settings can have substantial effects on labor market outcomes and reduce later life inequality.