Washington, DC Early Childhood Educator Pay Equity Fund Impact and Cost Effectiveness Study

In 2021, the Washington, DC Council approved a tax increase on the city’s highest income residents to fund the nation’s first large-scale, publicly funded program to supplement the wages of child care and early education (CCEE) educators. The Pay Equity Fund (PEF) was created to bring CCEE educator salaries in line with similarly trained and certified educators employed by DC Public Schools.

The PEF marks a shift in CCEE funding through its broad-scale alignment of educator compensation with that of public school teachers. Funded by the Bezos Family Foundation and DC Action, Mathematica is conducting the Early Childhood Educator Pay Equity Fund Impact and Cost Effectiveness (PEF Impact) Study to help inform discussions among researchers, policymakers, and community leaders about the future of this fund. PEF Impact includes analysis of the effectiveness of the PEF on CCEE labor market and workforce outcomes, as well as benefit-cost analysis conducted in partnership with CBCSE to generate new evidence on the economic value of the program. Early study findings show that the supplemental payments have increased CCEE labor supply in the first two years of the program, and reinforce the PEF’s potential as a tool for supporting this workforce and the DC families who rely on the services they provide.

Notable Public Coverage

• Read an article and listen to this radio segment and this radio segment from NPR that refer to Mathematica’s research on the one-year return on investment of the PEF.
• Read an article in Vox that mentions Mathematica's research showing that boosting the pay of preschool and daycare workers through the PEF helped quickly increase the size of the early care and education workforce, and that other states and localities are taking note of these early effects.
• Read two Letters to the Editor in The Washington Post that refer to Mathematica's research on the efficacy of the PEF to support the case that other states and localities should model DC's childcare system rather than interfere with it.
• Two-year impact findings were cited in support of bipartisan federal legislation introduced by Senators Tim Kaine (D-VA) and Katie Britt (R-AL) calling for a competitive grant program for states and localities interested in adopting or expanding educator pay supplement programs. 
• In restoring $70 million to the PEF in the final FY 2025 budget, Mathematica’s findings were cited by the DC Council as justification for continued investment in the program.
• Learn more about Mathematica’s recent analysis showing how supplemental payments have helped hire and retain local educators in child care and early childhood education.
• Read an article in The Hechinger Report that cites research by Mathematica about the early impacts of boosting the pay of preschool and daycare workers in the District of Columbia through a local PEF.
• Read an article from MarketWatch that cites research from Mathematica showing how increased pay for preschool and day care workers in the District of Columbia has helped boost employment levels at a time when retention and turnover are a nationwide challenge in the early childhood education workforce.
• Read an op-ed in Fast Company that cites Mathematica’s recent research on how the District of Columbia’s PEF resulted in an early boost to the number of educators in day care and preschool.
• Read a story in The Washington Post about the uncertain future of D.C.’s Early Childhood Educator PEF.
• Read a post in The B&G Report discussing Mathematica’s research on the early employment impacts of Washington, DC’s PEF in the first year of the program.