Early Childhood Fact Sheet - Early Childhood Educator Pay Equity Fund

Oct 15, 2026

This fact sheet reports findings on the impacts and cost effectiveness of Washington, DC’s Early Childhood Educator Pay Equity Fund (PEF) on child care and early education (CCEE) labor market outcomes over the first two years. It uses comparisons between Washington, DC and a “Synthetic” Washington, DC constructed from similar counties. Results show a statistically significant increase in CCEE educator employment, while average weekly wages and CCEE establishments show no statistically significant effects. The PEF is delivered through supplemental educator payments and supports HealthCare4ChildCare enrollment.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

Summary of the CCEE labor market impact of the Pay Equity Fund after two years

Impacts through two years of the Pay Equity Fund

CCEE employment levels for Washington, DC, estimated with and without Pay Equity Fund

Implications and next steps

Early Childhood Fact Sheet Owen Schochet and Christopher Jones Washington, DC’s Early Childhood Educator Pay Equity Fund increased the number of child care and early education workers after two years Child care and early education (CCEE) educators are among the lowest-paid workers in the country,1 and are disproportionately women of color. Low pay has widely been attributed to challenges in recruiting and retaining qualified CCEE educatorsand to low morale in CCEE settings.2 A stable and qualified CCEE workforce is the backbone of accessible and high-quality CCEE for families with young children.3,4 Washington, DC’s Early Childhood Educator Pay Equity Fund (PEF) was created to address the significant pay disparity between CCEE educators and K–12 teachers. Through the PEF, Washington, DC, is the first jurisdiction in the nation to use local tax revenue as a dedicated source of public funding to supplement CCEE educator wages. Mathematica, in partnership with the Bezos Family Foundation and DC Action, is studying the impacts and cost effectiveness of the PEF in Washington, DC. More information about this study is available on the project website. This fact sheet presents findings on the impacts of the PEF on CCEE labor market outcomes through two years of the program. Findings are based on comparisons of outcomes of Washington, DC, and a “Synthetic”Washington, DC, constructed using a group of counties that were similar to Washington, DC, prior to the launch of the program. Outcomes are from the Quarterly Census of Employment and Wages, which provides counts ofCCEE employees, average weekly wages, OCTOBER 2024 > [mathematica.org](mathematica.org) and establishments over time. For a more detailed presentation of these findings, please see the study’s two-year impact report.5 About the Early Childhood Educator Pay Equity Fund In 2018, the DC Council passed the Birth-to-Three for All DC Act, which expanded the District’s investment in CCEE to focus on infants and toddlers. In 2021, the DC Council voted to raise taxes on individuals earning more than $250,000 a year and allocated a portion of the revenue to supplement CCEE educator wages. Subsequently, the DC Early Childhood Educator Equitable Compensation Task Force was established to develop innovative strategies to distribute these funds. The PEF is administered by the DC Office of the State Superintendent of Education, who partners with a third-party vendor, AidKit, to distribute payments.6 1 Summary of the CCEE labor market impact of the Pay Equity Fund after two years In its first two years of operation, the PEF has delivered payments ranging from $5,000 to $14,000 per year to more than 4,000 CCEE educators in licensed centers and home-based programs in Washington, DC. In late summer 2022, eligible CCEE educators began receiving initial, lump sum payments for fiscal year (FY) 2022. Between December 2022 and September 2023, educators received a second set of supplemental payments in quarterly installments for FY 2023. The PEF also supports HealthCare4ChildCare, which, by the end ofFY 2023, enrolled more than 1,000 CCEE employees and their dependents in free or lower-premium health insurance plans. Impacts through two years of the Pay Equity Fund The PEF had a statistically significant positive impact on the number ofCCEE educatorsin Washington, DC. On average, the PEF increased CCEE employment levels by 146 educators, or about 5 percent, in each quarter over the first two years. OCTOBER 2024 > [mathematica.org](mathematica.org) This impact also grew over time–by the end of FY 2023, it was 219 educators, or nearly 7 percent larger than our best estimate of what CCEE employment levels would have been without the program. This positive impact was statistically significant because it was larger than impacts in virtually all other U.S. counties. These results suggest that the PEF effectively supported the hiring and retention of educators in Washing

FAQs

What problem does the Early Childhood Educator Pay Equity Fund (PEF) address?

The PEF addresses the pay disparity between CCEE educators and K–12 teachers, where CCEE educators are among the lowest-paid workers and are disproportionately women of color.

What changes occurred in CCEE educator employment after two years?

Across the first two years, the PEF increased CCEE employment levels by about 146 educators (around 5 percent) per quarter, and the impact grew by FY 2023 to 219 educators (nearly 7 percent) versus the estimate without the program.

Did the PEF significantly affect wages or the number of CCEE establishments?

The PEF had no statistically significant impact on average weekly wages, with wage effects remaining close to zero. It also had a modest negative impact on the number of CCEE establishments, but that finding was not statistically significant.

Oct 15, 2026

Uploaded by Jordan Avery