Effects of Occupational Certifications and Employment Settings on Childcare Employees' Compensation

• In Event: Beyond Wages: Job Amenities and Worker Bargaining Power

Abstract

Workers in the early care and education (ECE) industry are among the lowest paid in the United States, but they can benefit from occupational certifications such as the Child Development Associates (CDA). This study, using data from the 2016-2022 Current Population Survey, found that certified childcare employees in nonprofit and public schools experience up to a 42% increase in annual earnings compared to those without certifications. Additionally, certified childcare employees had higher probabilities of accessing employer-provided health insurance and retirement savings plans. The benefit of occupational certification was concentrated among employees in nonprofit and public schools compared to those in other employment settings in the ECE industry. The study suggests that certifications - when linked to public-sector employment - can significantly improve compensation for childcare employees. It highlights the potential of certifications and public employment as a tool to address inequity in the low-paid care industry.

Author

• Joy J. Kim, Rutgers University - New Brunswick
  Presenting Author