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Title: Investing in Early Care and Education: The Economic Benefits for California
Citation Type: Miscellaneous
Publication Year: 2019
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Abstract: Studies consistently show that public spending on early care and education (ECE) programs is a good long-term investment for children. However, there are immediate and long-lasting economic benefits to be gained through public spending on ECE programs as well. As California mulls pathways for state funding to grow the economy, research points to ECE as a vital and powerful opportunity. Expanding high-quality ECE would not only generate economic output through the higher earnings of ECE workers, but would have an even greater impact on the state’s economy by increasing the employment, earnings, and productivity of parents. Our report describes the current state of the ECE industry in California, including the unique challenges that require public investment in order to reap the full economic potential of high-quality ECE. In 2017-2018, California appropriated approximately $5.1 billion for ECE programs; this included state initiatives like CalWORKs and federal programs like Head Start. Cumulatively, publicly funded programs serve around one-third of current ECE enrollments, providing a crucial portion of the state’s social safety net. This level of investment, however, is insufficient to provide high-quality ECE services to all families who need it. As providers struggle to cover the basic costs of running an ECE business, licensed capacity has fallen, including a loss of 30 percent of family child care homes since 2008. Chronically low wages drive a cycle of turnover in the workforce, restricting its ability to grow to meet demand and impeding the ability of workers to increase their skills. Public investment is needed to address these challenges.
Url: https://laborcenter.berkeley.edu/investing-early-care-education-economic-benefits-california/
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Authors: Powell, Anna; Thomason, Sarah; Jacobs, Ken
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Data Collections: IPUMS CPS
Topics: Education, Health
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