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Early Childhood Educator Pay Equity Fund: Do Economic Returns Change over Time? Early Childhood Research Brief

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Title: Early Childhood Educator Pay Equity Fund: Do Economic Returns Change over Time? Early Childhood Research Brief
Language: English
Authors: Owen Schochet, Katie Gonzalez, Mathematica
Source: Mathematica. 2026.
Availability: Mathematica. P.O. Box 2393, Princeton, NJ 08543. Tel: 609-799-3535; Fax: 609-799-0005; e-mail: publications@mathematica-mpr.com; Web site: https://www.mathematica.org
Peer Reviewed: N
Page Count: 20
Publication Date: 2026
Sponsoring Agency: DC Action
Bezos Family Foundation
Esther A. and Joseph Klingenstein Fund, Inc.
Document Type: Reports - Research
Education Level: Early Childhood Education
Descriptors: Early Childhood Teachers, Teacher Salaries, Program Effectiveness, Educational Finance, Costs, Cost Effectiveness, Public School Teachers, Child Caregivers, Health Insurance, Teacher Employment Benefits, Wages, Outcomes of Education
Geographic Terms: District of Columbia
Abstract: Washington, DC's Early Childhood Educator Pay Equity Fund (PEF), launched in 2022, is the nation's first dedicated public funding stream to address pay disparities between child care and early education (CCEE) educators and public school teachers. Initially structured as temporary fixed payments delivered directly to educators, the program shifted in fiscal year (FY) 2024 to a facility payroll model designed to align educator pay with an established salary scale. In FY 2023, the PEF also began providing access to subsidized health insurance through the HealthCare4ChildCare (HC4CC) initiative. As part of a broader study evaluating the impact and cost effectiveness of the PEF, Mathematica--working in partnership with DC Action and the Early Care and Education Funder's Collaborative based at the Washington Area Women's Foundation--is studying its economic returns. Analysis of the PEF in FY 2023 found that although the program represented a substantial public investment, the total economic value of its benefits exceeded costs by a considerable margin (Belfield and Schochet 2024). This research brief presents updated findings for FY 2024 to determine whether the program, after transitioning to a new payment model, continued to generate positive economic returns in its third year. [Additional funding for this brief was provided by the Early Care and Education Funder's Collaborative based at the Washington Area Women's Foundation.]
Abstractor: As Provided
Entry Date: 2026
Accession Number: ED680874
Database: ERIC
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  Data: Mathematica. P.O. Box 2393, Princeton, NJ 08543. Tel: 609-799-3535; Fax: 609-799-0005; e-mail: publications@mathematica-mpr.com; Web site: https://www.mathematica.org
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  Data: Washington, DC's Early Childhood Educator Pay Equity Fund (PEF), launched in 2022, is the nation's first dedicated public funding stream to address pay disparities between child care and early education (CCEE) educators and public school teachers. Initially structured as temporary fixed payments delivered directly to educators, the program shifted in fiscal year (FY) 2024 to a facility payroll model designed to align educator pay with an established salary scale. In FY 2023, the PEF also began providing access to subsidized health insurance through the HealthCare4ChildCare (HC4CC) initiative. As part of a broader study evaluating the impact and cost effectiveness of the PEF, Mathematica--working in partnership with DC Action and the Early Care and Education Funder's Collaborative based at the Washington Area Women's Foundation--is studying its economic returns. Analysis of the PEF in FY 2023 found that although the program represented a substantial public investment, the total economic value of its benefits exceeded costs by a considerable margin (Belfield and Schochet 2024). This research brief presents updated findings for FY 2024 to determine whether the program, after transitioning to a new payment model, continued to generate positive economic returns in its third year. [Additional funding for this brief was provided by the Early Care and Education Funder's Collaborative based at the Washington Area Women's Foundation.]
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