Early Learning and the Preschool Teacher Workforce: Evidence From a Federal Grants Program

• In Event: Waves of Cash: The Consequences of Supplements, Finance Reforms, and Shortfalls

Abstract

This paper examines one possible channel through which federal support for early childhood education can improve outcomes; the labor market for teachers. The Preschool Development Grants (PDG) program (2014-2018) provided over $1 billion to states to expand access and quality in preschool programs. Leveraging variation in targeting across labor markets, I use a difference-in-differences strategy to show that annual wages for preschool teachers increased by 4-6% in targeted areas ($1,200-$2,400), relative to a matched comparison group in states that were denied funding. A series of robustness and placebo tests shows this was a direct result of the grant. Further work will examine effects on the wider labor market of educators, and effects on math and reading outcomes for children.

Author

• Charles Gale, Harvard University