The Early Childhood Care and Education Workforce: Trends and Patterns from 1992-2024

• In Event: Building a Sustainable Workforce: Strategies for Improving Compensation and Working Conditions for Early Childhood Educators

Abstract

This study examines the labor market characteristics and dynamics of the Early Childhood Care and Education (ECCE) workforce across three sectors: center-based (CB), home-based (HB), and school-based (SB). Using Current Population Survey data from 1992-2024, we analyze earnings patterns, workforce transitions, and demographic composition, while distinguishing between teachers and caregivers within each sector.

Our findings show that the total ECCE workforce has increased during this timeframe, primarily driven by growth in the center-based sector. Substantial wage disparities exist across settings, with school-based workers earning significantly more than their center-based and home-based counterparts, though these gaps have narrowed over time. Through difference-in-difference analyses, we demonstrate that while SB earnings have remained relatively flat, both CB and HB earnings have shown statistically significant increases over the study period.

Controlling for worker characteristics, we find strong wage premium for those with Bachelor’s or Associate’s degrees. Men earn more than women, and older workers earn higher wages relative to their younger counterparts, suggesting returns to experience. Teachers consistently earn more than caregivers across all settings. Our Oaxaca-Blinder decomposition shows that wage gaps across ECCE industries are explained by both observable worker characteristics and industry-specific factors, with differences in worker selection and how worker characteristics are rewarded differently across industries.

We find that worker turnover in the industry has declined over time and is consistently lower for teachers than for caregivers. Significant industry differences persist, with higher turnover rates in CB and HB settings compared to SB settings. Additionally, we explore transition patterns between ECCE settings, finding limited mobility from CB/HB into SB.

We additionally characterize demographic composition of workers: SB workers tend to be older, while CB workers are predominantly in their mid-20s. HB workers show a wider age distribution with more variable work schedules, often filling market needs for non-standard hours.

This research contributes to our understanding of the ECCE workforce amidst the growing recognition of the importance of early childhood education. Our findings have implications for policy interventions related to worker compensation, turnover and worker mobility within the early childhood education field.

Author

• Monica Agarwal, Northwestern University
  Presenting Author