why target ece workforce? general economic returns/benefits –to workers/multiplier effect –to...

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Why Target ECE Workforce? General economic returns/benefits – To workers/multiplier effect – To society/better child outcomes Political, economic potential – Increased public, business, union support – Economic recovery – window of opportunity Fix Market failures – Inability to pay – Lack of information

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Page 1: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Why Target ECE Workforce?• General economic returns/benefits

– To workers/multiplier effect

– To society/better child outcomes

• Political, economic potential– Increased public, business, union support

– Economic recovery – window of opportunity

• Fix Market failures– Inability to pay

– Lack of information

Page 2: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Getting from Here to There

• Current workforce:– Low education levels– Very low compensation– Little or no career ladder

• Keys to enhancement:– Route to higher education– Better compensation– Career ladder

Page 3: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

ECE Worker Qualifications Declining

0%

10%

20%

30%

40%

1983 1986 1989 1992 1995 1998 2001 2004

center-based ECE

all workers

Source: KRC analysis of the CPS Basic Montly Survey

Percent with a college degree or more

Page 4: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

In mid-80s, Younger Teachers were More Often College-Educated than Older Teachers -- Like the

Workforce as a WholePercent of Teachers and Administrators in Center-based Early Childhood Education with At Least A

Four-Year College Degree by Age

0%

10%

20%

30%

40%

50%

60%

24 27 30 33 36 39 42 45 48 51 54 57 60

Age (five-year averages; e.g., 24 means the average for ages 22-26)

1983-1987

Page 5: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Many College-Educated ECE Teachers and Administrators Near Retirement

Percent of Teachers and Administrators in Center-based Early Childhood Education with At Least A

Four-Year College Degree by Age

0%

10%

20%

30%

40%

50%

60%

24 27 30 33 36 39 42 45 48 51 54 57 60

Age (five-year averages; e.g., 24 means the average for ages 22-26)

1983-1987

1988-1992

1993-1997

Page 6: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Many College-Educated ECE Teachers and Administrators Near Retirement

Percent of Teachers and Administrators in Center-based Early Childhood Education with At Least A

Four-Year College Degree by Age

0%

10%

20%

30%

40%

50%

60%

24 27 30 33 36 39 42 45 48 51 54 57 60

Age (five-year averages; e.g., 24 means the average for ages 22-26)

1983-1987

1988-1992

Page 7: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Many College-Educated ECE Teachers and Administrators Near Retirement

Percent of Teachers and Administrators in Center-based Early Childhood Education with At Least A

Four-Year College Degree by Age

0%

10%

20%

30%

40%

50%

60%

24 27 30 33 36 39 42 45 48 51 54 57 60

Age (five-year averages; e.g., 24 means the average for ages 22-26)

1983-1987

1988-1992

1993-1997

2000-2004

Page 8: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Today, Younger Teachers Are Less Often College-Educated than Older Teachers -- Unlike the

Workforce as a WholePercent of Teachers and Administrators in Center-based ECE with At Least A Four-Year College Degree by Age

0%

10%

20%

30%

40%

50%

60%

24 27 30 33 36 39 42 45 48 51 54 57 60

Age (five-year averages; e.g., 24 means the average for ages 22-26)

1983-1987

2000-2004

Page 9: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Education Lowest for Home-Based ECE

56%

46%

32%

37%

11%

17%

0%

10%

20%

30%

40%

50%

60%

Home-Based ECE Center-Based ECE

High School or Less

Some College

College-Degree or More

Source: KRC analysis of the CPS Basic Monthly Survey 2000-2004

Page 10: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

ECE Workers Also Paid Less

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

1984 1987 1990 1993 1996 1999 2002

Inflation Adjusted Median Wages 1983-2004

Female College Graduates

All Workers

Center-Based Teachers and Administrators

Source: KRC analysis of the CPS MORG data 1983-2004.

Page 11: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Proposal and Cost

• Enhance qualifications, skills, pay @ each level of 1.85 million ECE workers: – Below HS HS CDA: (~50%)

– CDA AA ? BA/ECE PD (~30 – 50%)

• Cost:– Lowest-paid in field, lift from $8-$12 to $13-$17

– Mid-level ECE workers, those entering the field, add PD, $5/hr, ladder

– TOTAL: $18.5 billion - $23 billion (with benefits)

Page 12: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Policy Strategies

• New funding: tax incentives/legislation linking quality to reimbursement/salary

• Reallocated dollars– Race to the Top ECE– Reinvest prison savings– Workforce Development Initiatives– Social Investment Bonds

Page 13: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Tying funding to quality

• Through tax credits: individual/ teacher, reimbursement to ECE center , business, parents (LA)

• Through scholarships: T.E.A.C.H.

• Through legislation (PA STARS)

Page 14: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Reallocation Policy I: RTT

• Race to the Top offering new ECE grants– Target program quality– Focus on systems-building, collaboration– Sustainability key

• Opportunities for job creation/growth– Using RTT $ to tie quality to compensation– Using RTT $ to enhance worker skills

Page 15: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Reallocation Policy II: Corrections

• Logical connection: At-risk children drive many corrections costs, quality ECE helps

• Financial and political opportunities:– Huge prison budgets w/ little/no safety benefit– ECE relatively small budget, so small % of

set-aside can fund thousands of children– Same fiscal conservatives that support prison

cuts can back ECE funding

Page 16: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Reallocation III: Workforce Initiatives

• Federal/state grants for partnerships—training tied to ECE career ladders

• Preference for funding to proposals that– increase compensation with training/step up– have a funding sustainability plan – Strengthen business/labor engagement

• Use some $ to move unregulated home-based providers onto first rung of ladder

Page 17: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Reallocation IV: SIBs• In use in other countries, policy contexts

• ECE presents opportunities, challenges– Evidence of future payoff– Prevention major cost savings– Business, philanthropists taking interest

BUT– Estimating short-term savings difficult– Different savings by risk group, cohort, family

and community factors – how to incorporate?

Page 18: Why Target ECE Workforce? General economic returns/benefits –To workers/multiplier effect –To society/better child outcomes Political, economic potential

Contact information

Elaine Weiss

[email protected]

(202) 331-5537

Steve Herzenberg

[email protected]

(717) 255-7145