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

The PEF was created to bring child care and early education (CCEE) educator salaries in line with similarly trained and certified public school teachers in Washington, DC. Since 2022, the PEF has provided educators with pay supplements, and in 2023, began offering health insurance through the HealthCare4ChildCare initiative. Funded by the Bezos Family Foundation, the Klingenstein Philanthropies, and DC Action, Mathematica is conducting the Early Childhood Educator PEF Impact and Cost Effectiveness (PEF Impact) Study to help inform discussions among researchers, policymakers, and community leaders about the effectiveness of this program. PEF Impact includes analysis of the program’s impact on CCEE labor market and workforce outcomes, as well as benefit-cost analysis conducted in partnership with CBCSE to determine the economic value of the program.

Early study findings show that the PEF increased CCEE labor supply by about 7 percent in its first two years, translating to nearly 1,500 additional child care slots in the District. Findings from a benefit-cost analysis of the program in 2023 suggest that although it requires a substantial commitment of resources, it generates significant benefits that exceed its costs, with a one-year return on investment of 23 percent.

Notable Public Coverage

• Read an article and listen to NPR radio segments here and here 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.
• 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 Fund 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 a program that has boosted the pay of preschool and daycare workers in DC.
• Read an article from MarketWatch that cites research from Mathematica showing how increased pay for preschool and day care workers in DC 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 PEF has 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 the PEF in Washington, DC.
• Read a post in The B&G Report discussing Mathematica’s research on the early employment impacts of the PEF in the first year of the program.