Economic Evaluation in Social Research – OPRE’s Approach

Economic evaluation plays a vital role in understanding the cost and value of social programs. At the forefront of this work is the Office of Planning, Research, and Evaluation (OPRE), part of the U.S. Department of Health and Human Services. Through its unique approach, OPRE integrates economic analysis into evaluations to ensure that federal dollars are used effectively, efficiently, and equitably in supporting children, families, and communities.

Here’s a closer look at how OPRE applies economic evaluation in social research—and why it matters for policymakers, researchers, and the public.

What Is Economic Evaluation in Social Research?

Economic evaluation examines the relationship between the costs of a program or policy and the outcomes or benefits it produces. In the context of social research, this typically involves analyzing public programs aimed at improving human well-being, such as:

• Childcare subsidies
• Workforce training
• Early childhood education
• Family strengthening initiatives

The main types of economic evaluation include:

Type of Evaluation	Focus
Cost Analysis	Identifies and measures the cost of delivering a program
Cost-Effectiveness	Compares costs to outcomes using a single metric (e.g., cost per job obtained)
Cost-Benefit Analysis	Monetizes outcomes and compares them directly to costs
Return on Investment (ROI)	Assesses the financial return relative to the investment made

OPRE uses these tools to assess both fiscal responsibility and program impact—a dual lens that’s critical for public accountability.

How OPRE Integrates Economic Evaluation

OPRE’s economic evaluations go beyond just tallying up dollars. They seek to answer more nuanced questions like:

• Are resources being used efficiently?
• Which program designs deliver the greatest impact per dollar?
• How do costs and benefits vary by population or location?

To do this, OPRE collaborates with academic economists, evaluation contractors, and program administrators to:

• Embed cost modules in experimental and quasi-experimental studies
• Analyze long-term economic outcomes using administrative and survey data
• Use microsimulation and modeling for policy scenario testing
• Assess the scalability and sustainability of interventions

This approach helps bridge the gap between research and policy, enabling data-driven funding decisions.

Case Examples from OPRE-Funded Projects

OPRE has applied economic evaluation across several high-impact initiatives:

Program Area	Economic Evaluation Focus
Child Care and Early Ed	Cost-effectiveness of different subsidy models
Healthy Marriage/Responsible Fatherhood	Cost-benefit of relationship education programs
TANF and Employment	ROI for subsidized employment programs
Youth Services	Long-term economic outcomes of job readiness interventions

These analyses inform not only federal budgeting decisions but also help states and localities choose the most efficient service delivery models.

Emphasizing Equity in Economic Analysis

OPRE is also advancing the field by incorporating equity considerations into economic evaluation. This includes:

• Disaggregating cost and outcome data by race, ethnicity, income, or geography
• Valuing non-economic benefits (e.g., improved family stability or mental health)
• Recognizing that “efficiency” must be balanced with fairness and access

This more holistic perspective ensures that economic evaluations reflect the true value of social programs—beyond just financial returns.

Challenges and Innovations

Economic evaluation in human services isn’t without its challenges. Some common issues include:

• Difficulty assigning monetary values to intangible outcomes (e.g., emotional well-being)
• Variability in program implementation across sites
• Limited data on long-term benefits and costs

OPRE addresses these challenges through methodological innovation, including:

• Advanced modeling techniques (e.g., simulation, sensitivity analysis)
• Mixed-methods designs that combine numbers with narratives
• Cross-sector data linkages to track outcomes over time

Why It Matters

With rising demand for accountability and smart public spending, OPRE’s work in economic evaluation helps ensure that taxpayer investments deliver real value—not just in dollars, but in healthier, more stable communities. The goal is not just to find what works, but to determine what works best for the cost—and for whom.

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