A Degree of Change: How Credentialing Policies Affect Wages and Employment in Pre-K Education

• In Event: When Work and Care Collide: Labor, Policy, and Equity in Early Childhood

Abstract

Across the country, states are increasingly requiring that lead pre-Kindergarten (pre-K) teachers hold a bachelor’s (BA) degree, yet little is known about how this policy shift affects the early care and education (ECE) workforce. While many studies examine the link between teacher education and child outcomes, few investigate how credentialing policies reshape labor market dynamics. This study addresses that gap by estimating the effects of state-level BA degree requirements for pre-K teachers on wages and employment.

Using panel data from 2002 to 2019 across all 50 states, I estimate impacts using a two-stage event study method. I find that states implementing BA requirements experienced, on average, a $2,000 increase in median annual wages and a decline of about 1,000 pre-K teachers—significant changes compared to the national median annual wage of $30,000 and average of 8,600 pre-K teachers per state. 

Using state-by-year policy data from the National Institute for Early Education Research (NIEER), I show that these policies are rarely implemented in isolation: they are often bundled with other quality benchmarks, such as staff-child ratios and class size limits. Hence, the large estimates reflect sometimes substantial policy investments these states have made in improving ECE quality. I also demonstrate that the observed effects are specific to the pre-K workforce and not mirrored in adjacent sectors like childcare or Kindergarten.

These findings provide new evidence on how qualification requirements shape workforce supply and compensation. As policymakers consider how to professionalize the ECE workforce, this study offers timely insights into the labor market tradeoffs that may accompany efforts to raise standards.

Author

• Hannah K Denker, University of Arkansas, Fayetteville
  Presenting Author