Child care teachers support young children's learning and development and parents’ ability to work. However, they earn far less and turn over at far higher rates than K–12 teachers. COVID-19 exacerbated staffing challenges, and the child care workforce was 5.9 percent smaller in January 2023 than in January 2020. While low compensation likely drives turnover in early childhood education, there is relatively little large-scale evidence on the link between compensation and staffing challenges. We summarize the limited pre-pandemic evidence and use pandemic-era data from 90 percent of publicly funded child care centers in Louisiana to describe the relationship between sites’ compensation and staffing challenges. In October 2022, 15 percent of centers’ lead teacher positions were unfilled—nearly quadruple the 4 percent national vacancy rate for public school teachers. Of centers with any vacancies or hires in the past six months, 65 percent turned families away and 84 percent hired less-experienced or -qualified teachers than desired due to staffing challenges. Centers with higher wages were significantly less likely to report staffing challenges, turn families away, and hire less-experienced teachers, after controlling for center characteristics and region. Our findings and prior evidence suggest that wage increases are promising for stabilizing the child care workforce.

Nationwide, the percentage of four-year-olds enrolled in state-supported preschool programs has more than doubled since the early 2000s as states dramatically increased their investments in early childhood education. Florida's Voluntary Pre-kindergarten Program (VPK), which began in 2005, has been a national leader with respect to preschool access. This paper provides the first evidence of the program's impacts. We measure the effect of VPK participation on the likelihood that children are retained at any point between kindergarten and third grade. Using an instrumental variables approach, we leverage local program expansion and detailed student-level data on eight cohorts of children, four of which were of preschool age in the years before VPK was implemented and four of which had access to VPK programs. The results indicate that VPK did not lead to changes in the likelihood that children complete the third grade without ever being retained. We do find, however, that VPK led to a change in the timing of retention. Specifically, the program led to a drop in the likelihood that children were retained during the kindergarten year, but this drop was counteracted by increases in retention in subsequent school years. Implications for policy are discussed.

Historically, the early childhood care and education (ECCE) workforce has been characterized as a low-education, low-compensation, low-stability workforce. In recent years, considerable investments have been made to correct this, but we lack evidence about the extent to which these investments were accompanied by changes in the characteristics of the workforce. Using nationally representative data, we find that the historical characterization of the ECCE workforce continues to apply. However, we also find that the average educational attainment, compensation, and stability of ECCE workers increased substantially from 1990 to 2010. Surprisingly, the shift in the composition of the ECCE workforce toward more regulated settings and away from home-based settings is not the primary driver of these changes. Contrary to our expectations, gains within the home-based workforce are the primary drivers, though the education and wages of home-based workers remain substantially lower than among formal-care workers.