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The research in this article compares the data from several different early education programs which shows that some programs show no short-term or long-term impacts and some that show that there are positive impacts. This article aids in our research because it gives direction in studying the differences between the programs and why some showed positive impacts and why some did not.

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Untangling the Evidence on Preschool Effectiveness: Insights for Policymakers

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Research on early learning programs in the 1960s and 1970s revealed enormous benefits for children that lasted into adulthood, sparking investment in preschool programs, but two evaluations of large preschool programs that yielded mixed results created confusion about the wisdom of such investments. A review of rigorous and more recent research into the impact of preschool clarifies that students who attend high-quality preschool programs reap benefits that can last throughout their lives.

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This article is especially helpful in understanding the effects that early education has on the economy and the workforce. It talks about how it impacts the current workforce as well as how it will impact the future of the workforce.

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Early childhood education (ECE) can affect the economy in a variety of ways; for example, by allowing more parents of young children to participate in the labor force. It also can help prepare young children for future success in school, potentially impacting their longer-term educational trajectories and, by extension, the future US workforce. ECE, which refers to a range of programming for children prior to reaching school age (five years old), has received increased attention since the pandemic given the impact of closures-some temporary, some permanent-on children and families.

The state of childcare in the US is complex. The challenges for families can include affordability, accessibility, and quality. One specific issue that ECE programs face is maintaining a stable workforce. Recent research by the Cleveland Fed finds that "turnover among US childcare workers was about 65 percent higher than turnover in the median occupation in 2022, which creates challenges for the broader workforce." In addition, the study finds that "currently, the number of childcare workers remains below prepandemic levels."

To help shed light on the importance of ECE and the childcare landscape in the Cleveland Fed's district (Ohio, parts of Pennsylvania, Kentucky, and West Virginia), we talked to Jamie Remp. She's a Cleveland Fed Community Advisory Council member and executive director of King's Daughters Childcare Center in West Virginia, and she shares below some of her experiences with running a childcare center.

Why is ECE important to the community that you serve and, more broadly, in the US?
Research shows that the economy reaps the rewards when communities have quality ECE. Children who attended high-quality ECE programs are less likely to require remedial education or special services later, saving taxpayer dollars. Access to reliable childcare allows parents, particularly mothers, to participate in the workforce, boosting the economy. Early childhood programs encourage community engagement and parent support networks and can lead to stronger, more resilient communities. In West Virginia, where I am based, 41 percent of children under six years old do not have access to childcare. So it's a struggle to maintain access as well as high-quality standards.
How did the pandemic affect you or the services your organization provides?
Pre-pandemic, ECE programs faced challenges such as finding quality teachers who would work for lower wages, high operating costs to meet licensing requirements, and a never-ending list of families in need of childcare. When the pandemic hit, thousands of programs had to close their doors; some closures were temporary, but others were permanent. Families were left scrambling to find alternate childcare options and businesses were struggling with employees unable to work. Since the pandemic, our program has experienced much longer gaps in filling positions. The average turnaround time to hire one qualified staff member is almost six months. Hiring new staff requires background checks and training before a teacher can be placed in a classroom. Delays in hiring lead to the inability to enroll students-and even classroom closures-until teachers can be hired and trained. In my experience, childcare staff often do the job of multiple people to keep their programs running. For instance, as executive director of a childcare program, I oversee the finances, grant-writing and fundraising, project management, and maintenance of the center, and often I am filling in the gaps where we are short on staff. The teachers at our center not only create and follow lesson plans for the children, but they also clean their classrooms and toys; do laundry (blanket, sheets, and towels); feed the children breakfast, lunch, and snacks; monitor naptime; and write up a daily newsletter for each child to communicate with parents.
What is high-quality ECE and why do you think it has an impact on children and your local economy?
High-quality ECE programs have qualified and experienced teachers, lower student-teacher ratios, a stimulating learning environment, and a lot of family engagement and communication. During the crucial years from birth to age five, these programs can heavily impact the economic, health, and social outcomes for both individuals and society. The findings of a study carried out by Professor James J. Heckman indicate that every dollar invested in high-quality, birth-to-five early childhood programs can deliver a 13 percent return on investment. This figure represents the highest rate of economic return of any workforce development initiative. The study analyzed several life outcomes throughout participants' childhood and adulthood, including income, IQ, schooling, health, crime, and mothers' incomes after returning to work through access to childcare. Other research points to enhanced cognitive development in kids such as better memory and improved problem-solving abilities, as well as stronger social and emotional skills such as conflict resolution and empathy. High-quality childcare programs can also improve school readiness and narrow achievement gaps to the benefit of children from disadvantaged backgrounds.
The bottom line

The benefits of high-quality ECE for children and families can be wide-ranging, from stronger problem-solving skills in kids to helping to build more resilient communities. Access to high-quality ECE can support families' participation in the economy and can pave the way for children to reach their full potential, contributing to a stronger economy for everyone.

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The Importance of High-Quality Early Childhood Education for Children and the Economy

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Early childhood education (ECE) has received increased attention since the pandemic given the impact of closures on children and families. Among other ways, access to high-quality ECE can affect the economy by supporting families' participation in the economy and paving the way for children to reach their full potential.

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The empirical evidence is that high-quality early childhood education has large effects on a child’s future adult earnings. Early childhood education can increase a child’s future adult earnings by over 25 percent, and many programs have average future earnings effects of 3 percent or much greater. Over a career, even a 3 percent earnings boost amounts to many thousands of dollars.

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In the long run, the increased earnings due to early childhood education will be taxed by federal, state, and local governments. The increased earnings from early childhood education will also lower welfare usage, reducing the need for government spending. The drop in criminal activity will reduce prison costs and criminal justice system spending. In the short run, early childhood education may reduce remedial education costs. Several studies suggest that early childhood education reduces special education costs. Special education costs can be an extra $10,000 per year per child. Most studies suggest some reduction in special education costs from early childhood education, although the magnitude varies widely, from 23 to 86 percent.67 Simulation studies conclude that in the long run, many early childhood education investments are self-financing. Estimates by Lynch (2007) suggest that after 43 years, high-quality universal preK’s fiscal benefits will be about eight times program costs. Universal pre-K is estimated to break even from a combined federal and state government perspective after nine years, and for the average state after 23 years. Other simulation estimates are more conservative, but they agree that in the long run, fiscal benefits exceed direct budget costs. Dickens and Baschnagel (2008) conclude that a universal version of the Perry Preschool Program, a relatively expensive program, would break even in budget terms after 49 years.

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This article discusses the development of children from birth to age 8 and how educators can provide high-quality care that promotes the development of children into the next stages that contribute to short and long term academic and professional success. It clarifies the definition of a high quality early education and discusses the challenges early educators face in the workforce that contribute to low retention rates and how that impacts children under their care. This article is particularly helpful in our research because it includes suggestions to improve early education programs.

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Read “Transforming the Workforce for Children Birth Through Age 8: A Unifying Foundation” at NAP.edu

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Read chapter 5 The Importance of Continuity for Children Birth Through Age 8: Children are already learning at birth, and they develop and learn at a rapi…

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This article discusses the development of children from birth to age 8 and how educators can provide high-quality care that promotes the development of children into the next stages that contribute to short and long term academic and professional success. It clarifies the definition of a high quality early education and discusses the challenges early educators face in the workforce that contribute to low retention rates and how that impacts children under their care. This article is particularly helpful in our research because it includes suggestions to improve early education programs.

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Read “Transforming the Workforce for Children Birth Through Age 8: A Unifying Foundation” at NAP.edu

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Read chapter 5 The Importance of Continuity for Children Birth Through Age 8: Children are already learning at birth, and they develop and learn at a rapi…

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Comparing the Long-Term Impacts of Different Child Well-Being Improvements

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Comparing the Long-Term Impacts of Different Child Well-Being Improvements

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Frank Hawkins Kenan Institute of Private Enterprise

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Grand Challenge 2025: The Skills Gap - Frank Hawkins Kenan Institute of Private Enterprise

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Our 2025 Grand Challenge examines the skills gap – the difference between the skills that employers seek and those that workers possess – which is being driven by technological breakthroughs, demographic changes and cultural shifts in the workplace.

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Understanding America’s Labor Shortage: The Most Impacted Industries

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The Health Services, Professional and Business Services, Trade, and Accommodation and Food Services industries have the highest numbers of job openings.

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p. 43

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ERIC - ED600483 - America’s Skills Gap: Why It’s Real, and Why It Matters, Progressive Policy Institute, 2019-Mar

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At the start of 2019, 7 million U.S. jobs remained unfilled, and American employers consistently cite trouble finding qualified workers. While some liberals insist a “skills gap” doesn’t exist, all evidence points to the contrary. These gaps are moreover made worse by a higher education system that ill-equips graduates for the workforce. America’s economy has digitized over the past decade and the nation’s legacy infrastructure -- postsecondary education institutions and workforce development boards -- have not come close to keeping up. Moreover, the digitization of the economy has also changed hiring practices, with real implications for the workforce. In this whitepaper, Ryan Craig explains that employers are leaving middle and high-skill positions unfilled for two reasons: (1) They are failing to find enough candidates with the requisite digital skills; and (2) They are dissatisfied with the “soft skills” (such as teamwork, communication, organization,

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Skills or credentials-which is more important for landing a job in today's economy? And which do hiring managers prioritize?

According to a new U.S. Chamber of Commerce Foundation study, the answer, increasingly, is skills. The challenge is finding workers who have them.

Our study provides a detailed look at an American workplace in flux. Traditionally, pursuing formal education has been the surest path to employment. But times are changing, with companies preparing for a world where competencies-not degrees-are the most important factors when filling a job.

The Chamber Foundation's research finds that competencies-defined as knowledge and skills that can be observed, measured, or otherwise assessed-take precedence over academic credentials in the modern economy. In a survey of 500 HR leaders at businesses across the country, 74% of respondents report that their companies require the submission of a credential in their hiring practices. But only 26% claim that the credential is used in assessing the candidate's viability. As demand for competencies grows in the 21st century workplace, 78% of hiring managers agree that they will need to reassess the way they hire, and 45% report that changing hiring practices is a priority in their organizations.

Yet changing hiring practices to prioritize skills is only half the battle; the other half is ensuring that workers have the skills employers are looking for in the first place. American businesses face a difficult dilemma: The demand for skilled workers is greater than ever, but availability is in short supply. Our study finds that 74% of hiring managers agree that there is a skills gap in the current labor market, with 48% saying that candidates lack the skills needed to fill open jobs.

We know that a talent shortage exists-the question is, How do we address it? We propose three potential solutions: (1) increase upskilling initiatives for current employees; (2) work with educational programs to strengthen talent pipelines; and (3) improve alignment between educational program curricula and the skills needed in the workforce. To aid in this effort, the Chamber Foundation created Talent Pipeline Management(TPM), which connects classroom to career by coordinating shared responsibilities between education providers and employers. Now active in 33 states, D.C., and Canada, TPM helps students gain both the credentials and skills they need to succeed in today's workforce.

The workforce of today must be prepared for the economy of tomorrow. To that end, the Chamber will continue working to close the skills gap by strengthening partnerships with employers and education providers alike.

About the author

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The Chamber is doing it by strengthening partnerships with employers and education providers.

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Bailey, Martha J., Shuqiao Sun, and Brenden Timpe. 2021. "Prep School for Poor Kids: The Long-Run Impacts of Head Start on Human Capital and Economic Self-Sufficiency." American Economic Review 111 (12): 3963–4001.

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The Long-Run Impacts of Head Start on

Human Capital and Economic Self-Sufficiency

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Davis Schoch, A., Simons Gerson, C., Halle, T., & Bredeson, M. (2023). Children’s learning and development benefits from high-quality early care and education: A summary of the evidence. OPRE Report #2023-226. Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services.

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The PRISMA 2020 statement: an updated guideline for reporting systematic reviews

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The Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) statement, published in 2009, was designed to help systematic reviewers transparently report why the review was done, what the authors did, and what they found. Over the past decade, advances in systematic review methodology and terminology have necessitated an update to the guideline.

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New #2: How does access to high-quality early education influence workforce participation and equity in employment opportunities across different socioeconomic groups?

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New #2: How does access to high-quality early education influence workforce participation and equity in employment opportunities across different socioeconomic groups?

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Katherine Magnuson, & Greg J. Duncan. (2016). Can Early Childhood Interventions Decrease Inequality of Economic                    Opportunity? RSF: The Russell Sage Foundation Journal of the Social Sciences, 2(2), 123–141. https://doi.org/10.7758/rsf.2016.2.2.05

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Can Early Childhood Interventions Decrease Inequality of Economic Opportunity? on JSTOR

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Katherine Magnuson, Greg J. Duncan, Can Early Childhood Interventions Decrease Inequality of Economic Opportunity?, RSF: The Russell Sage Foundation Journal of the Social Sciences, Vol. 2, No. 2, Opportunity, Mobility, and Increased Inequality (May 2016), pp. 123-141