By Rappaport Institute for Greater Boston Team
On October 23rd at HKS, Harvard Kennedy School Professor and Rappaport Institute Director Jeffrey Liebman discussed his new report, “An Economic Analysis of the Childcare and Early Education Market in Massachusetts,” and presented the results of a new survey of Massachusetts parents about their childcare and early education preferences.
His report shows that, despite overwhelming evidence that 1) early childhood development affects later outcomes, and 2) achievement gaps are already substantial by age 5, the Commonwealth of Massachusetts spends one-fifth the amount per child on early education as it does on K-12 schooling. But, due to market failures, without substantial public financing, the market will provide too little early education, and the slots that exist will, on average, be lower than optimal quality.
To address these issues and reap the benefits - better life outcomes for children, reduced gender disparities in the labor market, and higher employment and a larger state economy overall - policymakers and state investment should focus on four steps, with an initial and early emphasis on provider wages and quality improvements:
Wage increases to stabilize the workforce, increase quality, and enable recruitment of the staff necessary for expansion in slots
- Investments in quality (training and certifications)
- Investments to increase slots
- Expand number of demand-side subsidies, timed so that the additional subsidies become available as new capacity comes online.
Following the research presentation, Professor Liebman was joined by state policymakers and experts for a discussion on early education policy in Massachusetts and the path to making affordable, high-quality childcare and early education available to all families in the state.
