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Minimum Wages and the Early Childhood Education Workforce: Policy Effects on Pay, Composition, and Cost

Fri, April 14, 8:00 to 9:30am CDT (8:00 to 9:30am CDT), Sheraton Grand Chicago Riverwalk, Floor: Level 4, Sheraton Ballroom IV and V

Abstract

The early childhood education (ECE) sector is characterized by low wages and high turnover. ECE teachers earn roughly half the hourly wage of the average kindergarten teacher. Low wages and high turnover are tied to reduced quality of care and instruction, and contribute to poor working conditions. Increasing minimum wages and setting competitive public-sector wages via public preschool for 3-and 4-year-olds are two substantial policy interventions that could increase wages for ECE teachers. This study seeks to describe recent shifts in ECE compensation, turnover, and composition, as well as to examine the impact of states’ minimum wage changes and public preschool salaries thereon. Preliminary results show positive associations between minimum wage increases and teacher wages, annual earnings, and labor supply.

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