Theearlychildhoodcareandeducationworkforcefrom1990through2010:Changingdynamicsandpersistentconcerns

DaphnaBassok,UniversityofVirginia,1MariaFitzpatrick,CornellUniversity2SusannaLoeb,StanfordUniversity3

AgustinaS.Paglayan,StanfordUniversity4WearegratefultoDavidDeming,BruceFuller,DeborahStipek,andtwoanonymousrefereesforusefulcommentsonpreviousdraftsofthispaper.ThisresearchwassupportedbyagrantfromtheInstituteofEducationSciences(R305A100574).TheviewsexpressedherearethoseoftheauthorsanddonotnecessarilyreflecttheviewsoftheUniversityofVirginia,CornellUniversity,StanfordUniversity,orIES.Anyremainingerrorsareourown.

                                                            1AssistantProfessor,CurrySchoolofEducation,UniversityofVirginia,405EmmetStreetSouth,Charlottesville,VA22904(dbassok@virginia.edu)2AssistantProfessor,DepartmentofPolicyAnalysisandManagement,CornellUniversity,103MarthaVanRensselaerHall,Ithaca,NY14853(mdf98@cornell.edu)3BarnettFamilyProfessor,StanfordUniversity,520GalvezMall,Stanford,CA94305(sloeb@stanford.edu)4Doctoralstudent,StanfordUniversity,520GalvezMall,Stanford,CA94305(paglayan@stanford.edu)

  

ABSTRACT

Despiteheightenedpolicyinterestinearlychildhoodcareandeducation(ECCE),littleisknownabouttheECCEworkforcetodayortheextenttowhichthisworkforcehaschangedoveraperiodofsubstantialinvestmentinthissector.Usingnationally‐representativedata,thispaperfillsthisgapbydocumentingchangesbetween1990‐2010intheeducationalattainment,compensationandturnoveroftheECCEworkforce.WefindthatthenationalECCEworkforceremainsalow‐education,low‐compensation,andhigh‐turnoverworkforce.Atthesametime,theaverageeducationalattainmentandcompensationofECCEworkersincreasedsubstantiallyoverthepasttwodecadesandturnoverdecreasedsharply.WedocumentamajorshiftinthecompositionoftheECCEworkforcetowardscenter‐basedsettingsandawayfromhome‐basedsettings.Surprisinglyhowever,thisshifttowardsmoreregulatedsettingsisnottheprimarydriveroftheobservedchangesintheECCEworkforce.WeshowthatimprovementsinthecharacteristicsoftheECCEworkforceweredrivenprimarilybychangeswithinsectorsand,contrarytoourexpectations,weshowthatthehome‐basedworkforce,whichfacestheleaststringentregulations,experiencedthemostimprovementovertheperiodexamined,thoughhome‐basedworkersremainsubstantiallydifferentfromformalcareworkers.

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INTRODUCTION

IntheUnitedStates,mostchildrenunderagefivereceiveregularcarebysomeoneotherthantheirparents(U.S.CensusBureau2010;Bassok2010).Earlychildhoodexperiencesplayacentralroleinshapingsubsequentdevelopmentaltrajectories,andtheimpactoftheseearlyexperiencesdependslargelyonthequalityofcaregiversandteachers(ShonkoffandPhillips2000;Peisner‐Feinbergetal.2001;Knudsen,Heckman,CameronandShonkoff2006;HamreandPianta2006;NationalScientificCouncilontheDevelopingChild2004,2007). Growingrecognitionoftheimportanceofearlychildhoodcareandeducation(ECCE)ingeneral,andofECCEprovidersinparticular,hasheightenedpolicyinterestinstrengtheningthequalityoftheECCEworkforce.In2011,thefederalgovernmentfundedtheRacetotheTopEarlyLearningChallenge,acompetitivegrantprogramtosupportstates’effortstoimproveearlychildhoodeducationprograms,andidentified“supportingagreatearlychildhoodeducationworkforce”asoneoffivekeyareasofreform.ThelatestreauthorizationofthefederalHeadStartprogramrequiresthatfiftypercentofHeadStartteachersholdaBachelor’sdegree(BA)inchilddevelopmentorarelatedfieldby2013(Barnettetal.2010).Further,25statesareoperatingordevelopingQualityRatingandImprovementSystems(QRIS)toassessandimprovethequalityofECCE,andmanyoftheseQRISprogramsofferfinancialincentivestoprovidersthatinvestintheiremployees’educationandtraining(Toutetal.2010). Despitetheinterestintheimprovementofthissector,weknowrelativelylittleaboutthecurrentstateoftheECCEworkforce,andevenlessabouttheextenttowhichthisworkforcehaschangedovertime.ItiswelldocumentedthattheECCEworkforceis

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characterizedbylowlevelsofeducation,wagesandstability(Brandon,2011;Howes,PhillipsandWhitebook1992;Cost,QualityandOutcomesStudyTeam1995;NICHDEarlyChildCareResearchNetwork2000;VandellandWolfe2000;CommitteeonEarlyChildhoodCareandEducationWorkforce;InstituteofMedicineandNationalResearchCouncil2012).Forinstance,theaverageannualincomeofpaidECCEworkersin2009rangedfrom$11,500forthoseworkinginachild’shometo$18,000forpreschoolteachers(U.S.GovernmentAccountabilityOffice2012).5However,whilestudieshavedocumentedtheloweducation,wagesandstabilityofECCEworkersusingavarietyofdatasources,thediverseanddispersednatureoftheindustrymakessystematicanalysisdifficult.ArecentreportoftheNationalResearchCouncildescribeshowthelackofcomprehensivedatatrackingthecharacteristicsoftheECCEworkforceseriouslylimitspolicymakers’effortstofacilitatechangeortrackimprovementsovertime(ADDCITATION). Overthepasttwentyyearsutilizationof“formal”ECCEservicessuchaspreschoolandHeadStarthasincreasedrapidly.Thisincreasehasledtoadeclineintheshareofworkersemployedinmore“informal”home‐basedsettings,suchasfamilychildcarehomes(Bassok,FitzpatrickandLoeb2012).Giventhatthehome‐basedsectorfacesmuchlessstringentregulationsthantheformalsector,andisoftensingledoutforprovidingthelowest‐qualitycare–theshifttowardsformalcaremayhavetranslatedintooverallimprovementsintheECCEworkforceovertime.Unfortunately,attemptstodescribetheevolutionoftheECCEworkforcehavebeenlimitedduetothepaucityofdatathatallows

                                                            5Educationandturnoverstatisticspresentasimilarpicture.Forinstance,turnoverinCaliforniachildcarecentersbetween1996and2000wasestimatedatabout75percent(Whitebooketal.2001)andanotherstudysurveyingchildcarecentersinIowa,Kansas,NebraskaandMissouri,foundthat40percentofcaregiversintendedtoleavetheECCEindustrywithinlessthanfiveyears(Torquati,RaikesandHuddleston‐Casas2007).

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forreliablecomparisonsoftheworkforceovertime(Saluja,EarlyandClifford2002;BrandonandMartinez‐Beck2006;Kagan,KauerzandTarrant2008). ThefewstudiesthathaveexaminedtheevolutionoftheECCEworkforceovertimeactuallysuggestthatthequalificationsoftheworkforcehaveeitherchangedonlymodestlyorhavedeclined(Whitebooketal.2001;Saluja,EarlyandClifford2002;Herzenberg,PriceandBradley2005;BellmandWhitebook2006).However,thesestudiesdonotemploynationallyrepresentativedataand/orfocusonlyonasinglesectoroftheECCEindustry,typicallychildcarecenters.Thelackofknowledgeaboutchangeswithinthehome‐basedworkforcerepresentsaparticularlyrelevantgapintheliterature,giventhatthissectoraccountsforaboutathirdofthenationalECCEworkforce(U.S.GovernmentAccountabilityOffice2012). Inthispolicybriefwemakeuseofnationally‐representativedatathatencompassworkersinallthreeECCEsectors–centers,homesandschools–toaddressthreequestions:(1)WhatarethecharacteristicsoftheECCEworkforceasof2010?(2)Howdidthecharacteristicsofthisworkforcechangebetween1990and2010?(3)Towhatextentaretheoverallchangesdrivenbyachangeintherelativeimportanceofeachsector(centers,homes,schools),andtowhatextentaretheyexplainedbychangesinthecharacteristicsoftheworkforceswithineachsector?

WefocusonfouroutcomestogaugethewellbeingoftheECCEworkforceandplausiblyproxyforECCEquality:(1)theeducationalattainmentofworkers;(2)theircompensation;(3)theextenttowhichworkersexittheindustryoverayear;and(4)theoccupationalprestigeofthosewhoentertheECCEworkforceeachyearfromotheroccupations.Improvementsalongthesedimensionsarelikelytoreflectanincreasedability

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toattractandretainqualifiedworkersintotheECCEindustry,andinturnmayimplyhigherqualityexperiencesforyoungchildren.6

Wefindthatthe“low‐education,low‐compensation,high‐turnover”characterizationofthenationalECCEworkforcecontinuestobevalid.Atthesametime,weshowthattheaverageeducationalattainmentandcompensationoftheECCEworkforceincreasedbetween1990and2010,andthatturnoverfromtheECCEindustrydecreasedsubstantially.OurresultsdifferfromearlierstudiesthathighlightnegativeorstagnanttrendsintheECCEworkforce.Thesedifferencesarelikelyexplainedbyourfocusonamorerecentperiodofanalysisandouruseofnationaldataincludingworkersfromallthreechildcaresectors.Wealsoshowthatchangesinthecharacteristicsofthenationalworkforcearemostlyexplainedbychangesinthecharacteristicsofworkerswithineachsectorandlesssobytheshifttowardcenter‐andschool‐basedsettings.Surprisingly,wefindthatchangesalongalldimensionsanalyzedweremostpronouncedamonghome‐basedworkers.DATA

WeanalyzedatafromtheMarchSupplementoftheCurrentPopulationSurvey(CPS),anationallyrepresentativehouseholdsurveythatisadministeredeverymonthbytheU.S.

                                                            6Whileideallywecouldalsoassesschangesovertimeindirectmeasuresofcaregiverquality,nationaldatatrackingsuchmeasuresovertimearenotavailable.Severalstudieshavesoughttodeterminewhetherthereisacausalrelationshipbetweenourproxiesandthequalityofcarechildrenexperience.Theevidencehereismixed.Asdescribedabove,improvementsinteachers’educationalattainmentareoftenpursuedasastrategytoimprovequality,andsomestudiessuggestthat,oversomerange,higherlevelsofeducationarerelatedtobetterclassroompractices(Blau2000).Ontheotherhand,Early(2007)raisesdoubtsabouttherelationshipbetweenspecificdegreesandchildoutcomes.HigherwagesareassociatedwithbetterclassroompracticesandlowerturnoverfromECCEjobs(Blau2000;WhitebookandSakai2003).Whilewearenotawareofstudiesinvestigatingtheimpactofindustryturnoveronchildren’sdevelopment,thefewstudiesontheroleofjobturnovershowthatchildrenwhospendmoretimewiththeircaregiver,andthosewhodonotexperienceachangeintheprimarycaregiveroverthecourseofayear,establishmorenurturingrelationshipswiththeircaregiverandexhibitbettercognitiveoutcomes(Elicker,Fortner‐WoodandNoppe1999;TranandWinsler2011).

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CensusandtheBureauofLaborStatistics.UsingtheCensus1990and2002IndustryandOccupationalCodes,weidentifyECCEworkersanddisaggregatethisbroadgroupintocenter‐,home‐,andschool‐basedworkers.Wepurposefullyimplementabroadandinclusivedefinitionoftheindustry.Specifically,ourcenter‐basedcategoryincludesallworkerswho(1)arenotself‐employed;(2)workineitherthe“childdaycareservices”industry,orhavechildcareoccupations(e.g.,“childcareworkers”,“pre‐kindergartenorkindergartenteachers”,“earlychildhoodteacher’sassistants”);and(3)workinanindustryotherthan“elementaryandsecondaryschools”,“privatehouseholds”,“individualandfamilyservices”,or“familychildcarehomes”.7Ourdefinitionofthehome‐basedECCEworkforceincludes(1)allself‐employedindividualswhoreportthattheyworkinthe“childdaycareservices”industry;(2)allthoseemployedinthe“familychildcarehomes”industry;(3)thosewhohavechildcareoccupations(e.g.,“childcareworkers”,“privatehouseholdchildcareworkers”,“pre‐kindergartenorkindergartenteachers”,“earlychildhoodteacher’sassistants”)andareemployedinthe“privatehouseholds”or“individualandfamilyservices”industries;and(4)thosewhohavechildcareoccupationsandareself‐employedinotherindustriesexceptfor“elementaryandsecondaryschools”.8Finally,wedefinetheschool‐basedECCEworkforceas“pre‐kindergartenandkindergartenteachers”and“earlychildhoodteacherassistants”employedinthe“elementaryandsecondaryschools”industry.WeobservewhethereachrespondentwasanECCEworkerin

                                                            7Onaverageovertheperiod1990‐2010,82.8percentofindividualsidentifiedascenter‐basedECCEworkerswereemployedinthe“childdaycareservices”industry;theremaining17.2percentwereinotherindustries.8Our“home‐basedworkforce”includesallindividualswhotakecareofarelative,friend,orneighbor’schild,whoreportthistobetheirjob.TheCPSreliesonself‐reportsandsomerelatives,friendsandneighborswhoassumechildcareresponsibilitiesmaynotreportthisasajobandwillthereforebeexcludedfromouranalysis.Totheextentthatthosewhofailtoreporttheiremploymentmaydifferinimportantwayfromthosewhodoidentifythisway,ourcharacterizationmaysufferfrombias.

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theweekofreferenceandwhethertheirlongestjobinthepreviouscalendaryearwasanECCEjob. Theworkforcecharacteristicsthatweanalyzearemeasuredasfollows:Educationalattainment:TheCPScollectsinformationabouteachhouseholdmember’shighestlevelofeducationasoftheweekofreference.Inkeepingwithpriorstudies,wedescribechangesintheshareofECCEworkerswithlessthanahighschooldegree,exactlyahighschooldegree,atleastsomecollegeeducationbutnoBA,andatleastaBA.9 Compensation:Weobserveeachindividual’sannualearningsfromthelongestjobheldinthepreviouscalendaryear.WedescribethemeanannualearningsofthosewhosemainjobinthepreviouscalendaryearwasanECCEjob.Wealsoestimatethehourlyearningsoftheseworkers,buthererestrictouranalysistothosewhowerefull‐yearworkersinthepreviouscalendaryear.10Weexpressbothearningsvariablesin2010dollars. Individualsalsoreportwhetheranyemployerhelpedpayforapensionand/orhealthplaninthepreviouscalendaryear.WeusethisinformationtoconstructtheshareofECCEworkersthatreceivedthisnon‐salaryformofcompensation.HerewerestrictoursampletoworkerswhosemainjobinthepreviouscalendaryearwasanECCEjob,and,in

                                                            9Informationoneducationalattainmentisavailablefrom1992to2010.Mostotherworkforcecharacteristicsareavailablefor1990to2010.Theexceptionisinformationonearningsandbenefitsavailablefrom1990to2009.10WemakethisrestrictionbecausetheCPScollectsinformationabouthourlywagesonlyforasubsampleoftheMarch intervieweeswhich excludes all self‐employed individuals, thus excluding a largeproportion ofhome‐basedworkers.Ratherthanexcludinghome‐basedworkersinouranalysis,weestimatedhourlywagesofECCEworkersbasedontheirannualearningsandtheirreportedhoursworkedinatypicalweek.Becausethe CPS does not specify the number of weeks worked in the past year, we limited analysis to full‐yearworkersforwhomweassumed50weeksofwork(seetechnicalappendixformoredetails). NotethatourestimatesthereforeapplyonlytothoseECCEworkerswhowereemployedonafull‐yearbasis(i.e.thosewhoworked 9months ormore). These represent 46 and65 percent of thoseworkerswho in1990 and 2010,respectively,reportedthattheirmainjobinthepreviousyearhadbeenanECCEjob.Thesubsetoffull‐yearECCE workers appears to be slightly more educated than the aggregate ECCE workforce, although thedifferencesbetweenthetwogroupsarenotstatisticallysignificant.Still,ourestimationmayoverestimatethehourlyearningsoftheaggregateworkforce.

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ordertobesurethebenefitswerereceivedfromanECCEemployer,includeonlythoseworkerswhoreportedtheyhadonlyoneemployerinthepreviouscalendaryear.11 Year‐to‐yearindustryturnover:Tomeasurechildcareindustryturnoverrates,weexploitthefactthattheCPSprovidesinformationaboutanindividual’sindustryandoccupationbothintheweekofreferenceandforthelongestjobheldinthepreviouscalendaryear.AmongindividualswhosemainjobinthepreviouscalendaryearwasanECCEjob,weestimatetheindustryturnoverrateastheshareofthosewhowerenolongerintheECCEworkforceduringtheweekofreference.AnanalogousmethodisusedbyHarrisandAdams(2007)tomeasureturnoverfromelementaryandsecondaryteaching.WecancalculateindustryturnoverwiththeCPSfrom1990to2010.OurmeasureonlycaptureswhetherindividualsremainedintheECCEworkforce;amongthosethatremain,wecannotdistinguishwhetherindividualschangedjobs.Thus,year‐to‐yearindustryturnoverisalowerboundestimateofthelevelofinstabilityexperiencedbychildren. OccupationalprestigeofentrantsintotheECCEworkforce:Wecombinetheinformationonaworker’soccupationprovidedbytheCPSwiththewidelyusedmethodologydevelopedbyCharlesNamandcolleagues(Nam2000;NamandBoyd2004),tocreateavariablethatassignseachnewentranttotheECCEworkforceascorebasedontheoccupationalprestigeoftheirpreviousjob.Aparticularoccupation’sprestigescoreisconstructedbycomparingthemedianearningsandeducationalattainmentofworkersinthatoccupationvis‐à‐vistheearningsandeducationofworkersinallotheroccupations.An

                                                            11AmongallworkerswhosemainjobinthepreviouscalendaryearwasanECCEjob,theproportionwhohadonlyoneemployerincreasedfrom75percentin1990to84percentin2010.Throughoutthewholeperiod,theseworkers earnabout5%more than thosewhosemain job in theprevious calendar yearwasalso anECCE jobbutwhohadmore thanoneemployer.Thusouranalysismayoverestimate theshareofworkerswithnon‐salarybenefitsintheaggregateECCEworkforce.

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occupation’sscorecanrangefrom0to100,andreflectsthepercentageofindividualsinthelaborforcewhoareinoccupationswithcombinedlevelsofeducationandearningsbelowthatoccupation.WeusethesescorestoexaminetheaverageoccupationalstatusofindividualswhosemainjobinthecalendaryearbeforethesurveywasoutsidetheECCEindustry,butwhowereECCEworkersintheweekofreference.IncreasesinthisoccupationalmeasureovertimeimplythatthosewhoareenteringtheECCEworkforcearecomingfrombettereducatedandbetterpaidoccupationsthanthosewhowereenteringtheworkforceinpreviousyears. Asresearchershavelongpointedout,existingdatasetsfailtofullyandaccuratelycapturethecomplexityoftheECCEworkforceovertime(CommitteeonEarlyChildhoodCareandEducationWorkforce;InstituteofMedicineandNationalResearchCouncil2012;Bellm&Whitebook,2006;PhillipsandWhitebook,1986).AlthoughtheCPSiswell‐suitedfornationallyrepresentativeanalysistrackingtrendsovertime,ithasanumberofkeylimitations:(1)itreliesonself‐reporteddataonemployment,andthereforelikelyexcludesmanyunpaidECCEworkersandsomepaidfamily,friendsandneighborswhotakecareofchildrenbutdonotreportchildcareastheiroccupation;(2)itdoesnotenableustodistinguishbetweenpreschoolandkindergartenteachers,ormoregenerally,todistinguishECCEworkersbytheageofthechildrentheyserve;and(3)itdoesnotcollectdetaileddatathatarerelevanttocharacterizeECCEworkers,suchasthelevelofECCE‐specifictraining,theresponsibilitiestheyhave,orthequalityoftheirinteractionwithchildren.Wereturntotheselimitationsindiscussingthegeneralizabilityofourresults.METHODS

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Toaddressourfirstandsecondresearchquestions,wepresentthevariablesofinterestin2010,anddiscusstheirchangeovertheperiod1990‐2010.WeassesswhethertrendsintheECCEworkforcedifferfrombroadertrendsintheeconomybycomparingchangesinthatworkforcetochangesamongtwocomparisongroups:allfemaleworkersandlow‐wageworkers.12Toaddressthethirdresearchquestion,twosetsofsimulationsallowustodisentangletheextenttowhichtheoverallchangesintheECCEworkforceareexplainedbyanincreaseintherelativesizeofthemoreregulatedECCEsectorsorbychangesintheworkforcewithineachsector.13GiventherelativelysmallsamplesizeoftheCPSineachyear,forallanalysesweusethree‐yearmovingaveragestoincreasetheprecisionofourestimates.RESULTS

TheECCEworkforceasof2010

Wefindthatthe“low‐education,low‐compensation,high‐turnover”labelcontinuestobeavalidcharacterizationofthe2.2millionECCEworkersrepresentedinoursample.AsshowninTable1Table1,in2010,nearly40percentoftheECCEworkforcehadatmosta

                                                            12 FemaleworkersarearelevantcomparisongroupasfemalescomprisethevastmajorityofECCEworkers.Basedonourcalculations,over95percentofECCEworkersovertheperiodofanalysiswerewomen.Thelow‐wageworkercomparisonincludesworkersfromthemainindustriesfromwhichECCEworkerscomewhentheyenterthechildcareindustry,aswellastowhichECCEworkersmigratewhentheyleavetheECCEworkforce.Weconsiderthefollowingindustries:beautysalons,foodservices,entertainmentandrecreationservices,grocerystores,departmentstores,andnon‐teachingjobsinelementaryandsecondaryschools(e.g.,busdrivers,cooks,janitors,teacheraides,secretariesandadministrativeassistants).Together,overthefullperiodofthestudy,theseindustriesrepresentaboutathirdofmigrationfromanotherindustryintochildcare,andfromchildcaretoanotherindustry. 13 First,weestimatewhattheoverallchangeintheECCEworkforce’scharacteristicswouldhavebeenhadthedistributionoftheworkforceacrossthethreesectors(center,homesandschools)changedasitdid,butassumingthatthecharacteristicsofworkerswithineachsectorremainedthesameasin1990.Then,toestimatethepartoftheoverallchangethatisdrivenbychangesinthecharacteristicsofworkerswithineachsector,weestimatewhattheoverallchangeintheworkforce’scharacteristicswouldhavebeenhadthecharacteristicsoftheworkerswithineachofthesectorschangedastheydid,butassumingthedistributionoftheworkforceacrossthesectorsremainedthesameasin1990.TheequationsusedforthesesimulationsareprovidedintheTechnicalAppendix. 

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highschooldegreeandathirdoftheworkforcehadsomecollegebutnoBachelor’sdegree.In2009,theaverageECCEworkerearnedanannualincomeof$16,215andanhourlywageof$11.7,andonly28percentofECCEworkersreceivedapensionand/orhealthbenefitsfromtheiremployer.14Worryingly,aboutafourthofthoseworkerswhohadbeenemployedintheECCEindustryin2009werenolongerthatindustryby2010.Further,ouranalysisoftheoccupationalprestigeofentrantssuggeststhatECCEwasarelativelyunattractiveindustrytoenterin2010,attractingindividualsfromoccupationsthatonaveragehadlowerlevelsofeducationandearningsthanthreefifthsofthecountry’slaborforce. ThedisaggregatedresultsshowninTable2highlightstarkdifferencesacrosssectors.In2010,about56percentofECCEworkerswereemployedincenter‐basedsettings;26percent,inhome‐basedsettings;and18percent,inschools.Consistentwithevidencefrompriorstudies,wefindthattheschool‐basedworkforceexhibitsthehighestlevelsofformaleducation,compensation,andstability,whilethehome‐basedworkforceexhibitsthelowest.Thecenter‐basedworkforcefallsinthemiddle,butismoresimilartothehome‐basedthantotheschool‐basedworkforce.Forinstance,17.1percentofschool‐basedworkershaveatmostahigh‐schooldegree.Thisproportionascendsto39.8percentand50.7percentamongcenter‐andhome‐basedworkers,respectively.Similarly,whileschool‐basedworkersearnanaverageannualincomeof$27,014,centerworkersearnonaveragejustoverhalfthisamount($14,567)andtheannualearningsofhome‐basedworkersareevenlower($12,415).Finally,while13.6percentofthosewhowereschool‐

                                                            14 Recall also that these figures likely overestimate the true compensation of the full ECCE workforce, due to our sampling restrictions (e.g. hourly wages are calculated based on full‐year workers, benefits are calculated based on workers with only one job in the past year). 

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basedECCEworkersin2009hadlefttheECCEindustryby2010,theindustryturnoverrateamongcenter‐andhome‐basedworkersin2010was24.4and28.5percent,respectively.ChangesinthecharacteristicsoftheECCEworkforcein1990‐2010

Theverylowlevelsofformaleducation,compensationandstabilityamongtheECCEworkforcewarrantconcern.However,asTable1indicates,wealsofindmeaningfulsignsofimprovement.Infact,amongtheECCEworkforceasawholeweshowthatallofthecharacteristicsanalyzed–education,compensation,turnoverandprestigeofentrants–exhibitedsignificantandsubstantialchangesinthedirectionhypothesizedtoimproveECCEquality.15

AsshowninFigure1Figure1,theshareofECCEworkerswithatleastsomecollegeeducationrosefrom47to62percentbetween1992and2010.Meanannualearningsincreasedby51percent,from$10,746to$16,215between1990and2009.WhilepartofthisincreasewasdrivenbyanincreaseinthenumberofhoursworkedbyECCEworkers,16themeanhourlyearningsofECCEworkersalsoincreasedsubstantiallyoverthatperiod(by33percent,from$8.8to$11.7perhour),andsodidtheshareofECCEworkerswithemployer‐paidpensionand/orhealthbenefits(from19to28percent).AnnualturnoverfromtheECCEindustrydecreasedsubstantiallyovertheperiodofanalysis(from32.9percentin1990to23.6percentin2010).Finally,individualswhomovedintochildcarefromotheroccupationsin2010camefromsomewhatmoreprestigiousoccupationsthanthosewhomovedintochildcarein1990.TheaverageoccupationalprestigescoreofECCE                                                            15Thechangesineducationalattainment,compensationandindustryturnoverthatwediscussthroughoutarestatisticallysignificantlydifferentfromzeroatthe5percentlevel.ChangesintheoccupationalprestigescoreofECCEentrantsaresignificantlydifferentfromzeroatthe15percentlevel.NotethattheanalysisofaverageoccupationalprestigescoresappliesonlytoindividualswhoenteredtheECCEworkforceinagivenyear.Thisisaverysmallsample,soweevaluatesignificanceatthe5,10and15percentlevels.16Themeanhoursworkedperweekincreasedfrom29.9to31.8between1990and2010.

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entrantsincreasedby4.7percentilepointsoverthisperiod,from37.6to42.3,perhapsindicatinganimprovementintheECCEindustry’sabilitytoattractmorequalifiedworkers. ThechangesobservedamongtheECCEworkforcedonotsimplyreflecttrendsinthefemalelaborforceand/orinlow‐wageindustries.Comparedtofemaleworkers,theECCEworkforceexhibitedalargerincreaseincompensationandasteeperdeclineinindustryturnover;andcomparedtolow‐wageworkers,allvariablesexhibitedalargerimprovementamongECCEworkers.Further,thechangesobservedreflectastabletrendwithintheindustryandarenottheproductoftheeconomiccrisisthatbeganin2008.17Sector‐specificchanges?

InTable2weshowthattheoverallimprovementsseeninthisworkforcearedrivenbyimprovementsamonghome‐basedworkers,andtoalesserextentcenter‐basedworkers.Inthehome‐basedsector,theaverageeducationalattainment,compensationandindustryturnoverofworkersimprovedsignificantlyandsubstantiallyovertheperiodofanalysis.Withrespecttoeducationalattainment,therewasasignificantincreaseintheshareofworkerswithatleastsomecollege(by21.4percentagepoints(p.p.)),andasignificantdecreaseintheshareofworkerswithlessthanahighschooldegree(by17.8p.p.).Theaverageannualandhourlyearningsofhome‐basedworkersincreasedby92and50percent,respectively,andtheshareofhome‐basedworkerswithpensionorhealthbenefitsroseaswell(by4.5p.p.).Finally,industryturnoverdeclinedamonghome‐basedworkers(by8.4p.p.,from36.9percentin1990to28.5in2010).

                                                            17OneplausiblehypothesisisthattheobservedimprovementsinECCEworkers’qualificationsandstabilityaretheproductoftheeconomiccrisis.However,insupplementaryanalysisavailableuponrequest,weexploredwhethertherewerechangesintrendsfollowingtheeconomiccrisisthatbeganin2008.Wefindnoevidencetosupportthisclaimand,ifanything,ourresultssuggestthattheimprovementinECCEworkers’characteristicswasstalledorreversedduringthecrisisperiod.

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Changeswithinthecenter‐basedsectoralsosuggestimprovementsovertime,butthesechangesareofasmallermagnitude.Forinstance,between1990and2009,theaverageannualearningsamongcenter‐basedECCEworkersincreasedby35percentandaveragehourlyearningsroseby18percent.Industryturnoverratedroppedsignificantly,from34percentin1990to24.4percentin2010.Othercharacteristicsappeartochangeinadirectionconsistentwithimprovement,althoughthechangesarenotstatisticallysignificant.Differencesremainbetweenthesectorswithrespecttoallthecharacteristicsanalyzed,butthepronouncedchangeswithinthehome‐basedsectorimplyanarrowingofthegapwithrespecttotheothertwosectors.Expansionofformalcareasanexplanationforgains?

AsshowninthefourthpanelofFigure1,between1990and2010therewasasignificantchangeintherelativeimportantoftheECCEsectorsinaccountingforthesizeoftheaggregateworkforce.Therelativeimportanceofhome‐basedworkersdeclinedsharply(by21.8p.p.),compensatedmostlybyanincreaseintherelativeimportanceofcenter‐basedworkers(by17.5p.p.).Althoughtherelativeimportanceofschool‐basedworkersincreasedonlyslightly(by4.3p.p.),thenumberofworkersinthissectorincreasedby45percentoverthistimeperiod,atrendconsistentwithboththeexpansionofstatepre‐kindergartenprogramsandtheshifttowardsfull‐daykindergartens.Thenumberofcenter‐basedworkersalsoincreaseddramatically(by61percent),whilethenumberofhome‐basedworkersdecreased(by39percent).ThisredistributionofECCEworkersfromchildcarehomestocentersandschoolsisconsistentwiththerecentdeclineintheshareofchildrenunderagefivewhosemainchildcarearrangementisinahomesetting(U.S.CensusBureau2010).

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Asdiscussedabove,home‐basedworkershavefarlowerlevelsofeducationandcompensationandhigherlevelsofindustryturnoverthandocenter‐orschool‐basedworkers.Thedeclineintherelativeimportanceofhome‐basedworkersisoneplausibleexplanationfortheobservedincreaseintheeducationalattainment,compensationandstabilityofthenationalECCEworkforce.However,changesinthesecharacteristicswithinsectorsarealsorelevant–and,infact,morerelevantthanthechangesinthedistributiontheworkforceacrosssectors.

WedecomposeaggregatechangesintheECCEworkforceintothepartexplainedbytheexpansionoftheformalsectorandthepartexplainedbychangesinthecharacteristicsofworkerswithinthesectors.WepresenttheestimationsinPanelAofTable3.Whilebothfactorscontributetotheoverallchange,formostvariables(educationalattainment,annualandhourlywages,andindustryturnover),changeswithinthesectorsexplainmostoftheaggregateimprovement,withchangesintherelativeimportanceofthesectorsexplainingonlyasmallportionoftheoverallimprovement.Forexample,increasesinearningswithinsectorsexplain78percentoftheoverallincreaseinannualearnings,whiletheredistributionofworkersacrosssectorsexplainsonly22percent.Similarly,within‐sectorchangesexplain86percentofthedeclineinindustryturnover.

Further,asreportedinPanelBofTable3,changeswithinthehome‐basedworkforceexplainmostofthechangeineducationalattainmentandearningsthatisattributabletowithin‐sectorchanges.Indeed,improvementswithinthehome‐basedsectordriveovertwothirdsoftheincreasesintheECCEworkforce’seducationalattainment.DISCUSSION

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ThispolicybriefhighlightsthecurrentstateoftheECCEworkforceandexploreswhetherthisworkforcehasexperiencedmeaningfulchangesoveraperiodcharacterizedbyheightenedinterestandinvestmentinearlychildhoodprograms.Echoingearlierwork,wefindthatthislaborforcecontinuestobecharacterizedbyverylowlevelsofeducation,compensationandstability.However,wealsoshowthatboththeeducationalattainmentandthecompensationoftheECCEworkforceincreasedmeaningfullybetween1990and2010andthatturnoverfromtheECCEindustrydecreasedsubstantially.Takentogetherthefindingsaremixed,highlightingbothimprovementsovertimeandthepersistenceoftroublingissues.Forexample,ourdatashowthatin1992ECCEworkerswithaBAearned47percentlessthanelementaryschoolteacherswiththesameeducationallevel.DespitethesignificantincreasesinbotheducationalattainmentandearningsamongECCEworkersthatwedocumentinthispaper,in2009ECCEworkersstillearned38percentlessthanelementaryschoolteachers.Givenourincreasedunderstandingoftheimportanceofearlychildhoodinterventionsandofhigh‐qualityECCEproviders,thesepatternsareconcerning.However,thepositivetrendswedocumentsuggestthatsubstantialchangesinthisworkforceareinfacttakingplace. Itisworthnotingthatthepositivetrendswedocumentdiffersignificantlyfromthosereportedinpriorstudies,whichdocumentadeclineormodestchangeintheeducationalattainmentandcompensationoftheECCEworkforce.Oneexplanationisthatpriorstudieshavegenerallyfocusedonthecenter‐basedworkforceandhavenotaccountedfortheevolutionofthehome‐basedworkforce,wherewefindmeaningfulimprovements(Whitebooketal.2001;Saluja,EarlyandClifford2002;Herzenberg,PriceandBradley2005;BellmandWhitebook2006).

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Asecondexplanationisthatourstudymakesuseofmorecurrentdatathanearlierwork.Forinstance,anearlierstudythatreliesonthesamedatausedherebuttracksthecenter‐basedworkforceonlythrough2003reportsadeclineintheproportionofthatworkforcethatholdsaBA(Herzenberg,PriceandBradley2005).Wereplicatethatfindinghere,butshowthatbetween2004and2010thistrendisreversed.Overallwedonotobservesignificantchanges(eitherincreasesordecreases)intheeducationalattainmentofthecenter‐basedworkforceovertheperiod1990‐2010,butdocumentsignificantimprovementsinthecompensationandstabilityofthisworkforce. WealsodocumentadramaticreconfigurationoftheECCEworkforce,suchthatthemajorityofworkersnowworkinformalratherthanhome‐basedsettings.Surprisingly,however,weshowthattheshiftawayfromhome‐basedcareandtowardscenter‐basedsettingsisnottheprimaryexplanationfortheimprovementsobservedintheindustryatlarge.Infact,mostoftheimprovementsintheECCEworkforceareexplainedbywithin‐sectorimprovementsinthecharacteristicsofworkers.Further,whilethecenter‐basedworkforceexhibitedsignificantincreasesinearningsandaremarkabledeclineinindustryturnover,improvementswithinthehome‐basedworkforceweretheprimarydriveroftheincreaseintheeducationalattainmentandearningsoftheaggregateECCEworkforce. Thesefindings–thattheoverallimprovementoftheECCEworkforcewasprimarilydrivenbyimprovementswithinthehome‐basedworkforce–aresurprisinginlightofthepolicyemphasisonexpandingandimprovingformalizedECCEsettingssuchaspreschoolsandpre‐kindergartenprogramsoverinformalsettings.Improvementswithinthehome‐basedworkforcemaybetheresultofrecenteffortstoincreasethequalificationsandstabilityoftheseworkers.Forinstance,recentinitiativesrewardparticipationin

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professionaldevelopmentandtheacquisitionoffurthereducation;supplementthewagesofhome‐basedworkerstoensuretheymeetalocally‐determinedminimumlivingwage,andfacilitatetheprovisionofemployer‐sponsoredhealthplansbypoolingtogetherworkersfromdifferentchildcarecentersandhomes(Kagan,KauerzandTarrant2008).Still,furtherstudyisneededtounderstandwhathasdriventheobservedimprovementintheeducation,compensationandstabilityofhome‐basedworkers,tounderstandhowtocontinuethispositiveandunexpectedtrend.Studylimitations

WhilethecurrentstudyprovidesnewevidenceaboutthecurrentstatusoftheECCEworkforceanditschangingnatureoverthepasttwodecades,theCPSwasnotdesignedtostudytheECCEindustryandseveralofitslimitationsareworthhighlighting:

First,theCPS,whilecommonlyusedinanalysesofworkers,reliesonself‐reporteddata.TotheextentthatcertainsegmentsoftheECCEworkforcearelesslikelytoreporttheiremployment,ourestimateswillnotaccuratelygeneralizetotheECCEworkforceinitsentirety.Further,ifthesenon‐reportershavelowerearningsandeducationalattainmentthandootherworkers,ourfindingswilloverestimateconditionsinthisindustry,atroublingpointgiventhealreadylowlevelswedocument.Whileweareunabletoassesstheextentofnon‐reportinginoursample,itislikelyweexcludesomeportionoftheinformalsectorincludingunpaidworkers,paidworkerswhodonotreporttaxes,orpaidfamily,friendsandneighborswhodespiteassumingchildcareresponsibilitiesdonotreportitasajob.Theseinformalsettingsrepresentameaningfulportionofthemarket,andmorenuanceddataarenecessarytobetterunderstandthecompositionofthisgroup.

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Second,theCPSdoesnotprovidedirectmeasuresofcarequalityandthuscannotbeusedtoassesswhetherandhowmoreproximalmeasuresofcarequalityhavechanged.WhileouroutcomesprovideaclearpictureoftheeconomicstatusoftheECCEworkforce,animportantissueinitsownright,ultimatelypolicymakerswishtoimproveearlychildhoodexperiencesforchildrenandtherelationshipbetweeneachofthesemeasuresandcarequalityisnotaswellunderstoodaswewouldlike.Itisdifficulttoknow,forexample,towhatextentchangesinearningsovertimeamounttobettercareforyoungchildren.WehaveinterpretedourfindingsasindicativeofimprovementsinthequalityoftheECCEworkforce,butacompetinghypothesisisthattheincreaseinECCEworkers’compensationandthereductionofturnoverreflectanincreaseinthedemandforECCEservices,withoutacorrespondingimprovementintheactualqualityoftheseworkers.Additionalworkinvestigatingthelinkbetweenstructuralmeasuressuchastheonesavailableinadministrativedatasetswouldhelphere.

Third,ourstatisticalinferencesarelimitedbyoursmallsamplesize.EachMarch,theCPSsurveysaround670center‐basedworkers,530home‐basedworkersand230school‐basedECCEworkers.Usingthree‐yearmovingaverages,wewereabletodescribetheevolutionofthecenter‐andhome‐basedworkforceswithreasonableprecision.However,oursamplesizewastoosmalltomakereliableinferencesabouttheevolutionoftheschool‐basedworkforce.

Finally,theCPScannotbeusedtodistinguishbetweenECCEworkerswhoworkwithinfantsandtoddlers,andthosewhoworkwithpreschoolers.Similarlyweareunabletodistinguishbetweenpre‐kindergartenandkindergartenemployees.Datathatallowsfor

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thesetypesofdelineationswouldbetterallowustounpacktrendsandbegintounderstandthemechanismsdrivingthesepatterns.Conclusion

WhileourfindingsechootherrecentworkonthelowlevelsofearningsandeducationwithintheECCEworkforce,ourfindingsalsoshedanoptimisticlightonthepossibilityofpositiveimprovements.Weshowthatthequalifications,compensationandstabilityoftheECCEworkforcecanimprove,andinfacthaveimprovedmeaningfullyoverthepasttwodecades.ThedeclineinturnoverfromtheECCEindustryhasbeenparticularlymarked.Whilesomedegreeofturnovermaybedesirableinordertoreplaceineffectiveworkers,theannualECCEindustryturnoverratein1990was32.9percent,roughlythreetimeshigherthantheindustryturnoverrateof11percentobservedamongelementaryandsecondaryeducationteachers.By2010,however,thegapbetweenthetwohadnarrowedsignificantly,owingtothereductioninturnoveramongECCEworkers.Toourknowledge,oursisthefirststudytolookattheevolutionofturnoverforanationallyrepresentativesampleoftheECCEworkforce.Whileweareunabletoobservejobturnover,whichisamoreproximalmeasureoftheinstabilitychildrenexperience,industryturnoverisanimportantmeasureinitsownright,showingthatindividualsarestayingwithintheindustrylongerthantheydidinthepastwhichmaytranslatetopositiveoutcomesforchildrenandmayindicatethatearlychildhoodjobsaremoreattractivethantheyoncewere. TheimprovementswehaveidentifiedforECCEworkershavetakenplacewithinboththecenter‐andhome‐basedsectors,whichtogetheraccountforovereightypercentoftheworkforce.Improvementswithinhome‐basedchildcarehavebeenparticularly

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remarkable.Totheextentthatthecharacteristicsweanalyzedare,infact,proxiesofECCEquality,ourfindingsimplyanarrowinginthequalitygapbetweenhome‐basedandothermoreformalizedtypesofchildcare.Thisfindingisimportantbecauseasrecentlyas2005,thehome‐basedsector,historicallysingledoutasthelowest‐qualitysectorwithinchildcare,servedaroundfortypercentofchildrenunderfiveyearswhosemotherswereemployed(U.S.CensusBureau2010),andthereissomeevidencethatitisthepreferredtypeofarrangementamongHispanicfamilies(Fuller,HollowayandLiang1996;Liang,FullerandSinger2000;Fuller2008).Putdifferently,workersinchildcarehomesremainsubstantiallylessqualifiedthanworkersintheformalchildcaresector,butthetrendsweobservesuggestthatclosingthequalitygapbetweenthesectorsispossible.

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Figure1.EvolutionofselectedcharacteristicsoftheECCEworkforce,andoftherelativeimportanceofeachECCEsector,overtime(1990‐2010)

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Mean hourly earnings of full‐year ECCE workers, by sector, 1990‐2009(at 2010 dollars)

All ECCE workers

School‐based worker

Center‐based worker

Home‐based worker

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1990

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ECCE industry turnover rate by sector, 1990‐2010(% of workers who left the industry from one year to the next)

All ECCE workers

School‐based worker

Center‐based worker

Home‐based worker

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Share of ECCE workers with at least some college education, by sector, 1990‐2009(as a % of ECCE workers in each sector)

All ECCE workers

School‐based worker

Center‐based workers

Home‐based workers

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Distribution of the ECCE workforce across sectors, 1990‐2010(as a % of all ECCE workers)

School‐based worker

Center‐based worker

Home‐based worker

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Table1.EvolutionoftheECCEworkforce,andcomparisontofemaleandlow‐wageworkers(1990‐2010)

1992 2010 2010 vs . 1992

Distribution of the workforce by educational attainmentECCE workersLess  than high school 21.4 11.5 ‐9.9 *High school  degree 31.5 26.9 ‐4.6 *Some col lege or Associate's  degree 26.1 33.3 7.2 *At least a  Bachelor's  degree 20.9 28.4 7.5 *

Female workersLess  than high school 11.5 8.1 ‐3.4 *High school  degree 36.0 26.4 ‐9.6 *Some col lege or Associate's  degree 29.2 31.9 2.7 *At least a  Bachelor's  degree 23.2 33.6 10.4 *

Low‐wage workersLess  than high school 20.5 17.0 ‐3.5 *High school  degree 38.9 33.5 ‐5.4 *Some col lege or Associate's  degree 26.7 31.1 4.4 *At least a  Bachelor's  degree 13.9 18.4 4.5 *

1990 2009 2009 vs . 1990

Mean annual earnings of all workers (at 2010 dollars)ECCE workers 10,746 16,215 51% *Female workers 24,427 30,629 25% *Low‐wage workers 18,266 21,298 17% *

Mean hourly earnings of full‐year workers (at 2010 dollars)ECCE workers 8.8 11.7 33% *Female workers 16.3 19.0 17% *Low‐wage workers 13.4 14.2 6% *

Share of workers with pension and/or health benefits paid at least partly by the employECCE workers 19.0 28.0 9.0 *Female workers 56.4 57.9 1.5 *Low‐wage workers 42.5 42.2 ‐0.3

1990 2010 2010 vs . 1990

Industry turnover rateECCE workers 32.9 23.6 ‐9.3 *Female workers 24.7 17.9 ‐6.8 *Low‐wage workers 26.5 19.1 ‐7.4 *

Average occupational prestige in the year before entering the workforceECCE workforce enterers 37.6 42.3 4.7Low‐wage workforce enterers 41.8 42.0 0.2

* denotes change with respect to 1990 or 1992 is statistically significantly different from zero at the 5% level. Changes in the share of workers by educational attainment, the share with pension and/or health benefits, and the industry turnover rate are measured in percentage points; changes in annual and hourly earnings, as a percent change; and changes in the average occupational prestige score of those entering the ECCE workforce, in percentiles.Source: Authors based on the March Supplement of the Current Population Survey.

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Table2.EvolutionoftheECCEworkforcebysector(1990‐2010)

 

1992 2010 1992 2010 1992 2010

Less  than high school 12.3 9.8 37.6 19.8 * 5.3 5.1High school  degree 32.7 30.0 34.5 30.9 20.6 12.0 *Some col lege or Associate's  degree 33.3 36.6 21.8 34.3 * 17.5 21.7At least a  Bachelor's  degree 21.6 23.7 6.1 15.0 * 56.6 61.2

1990 2009 1990 2009 1990 2009

Mean annual earnings of all workers (at 2010 dollars)

10,809 14,567 * 6,480 12,415 * 24,191 27,014

Mean hourly earnings of full‐year workers (at 2010 dollars)

9.2 10.9 * 5.6 8.9 * 17.5 18.2

Share of workers with pension and/or health benefits paid at least partly by the employer

20.4 24.5 3.1 7.6 * 64.3 68.8

1990 2010 1990 2010 1990 2010

Industry turnover rate 34.0 24.4 * 36.9 28.5 * 15.9 13.6

Average occupational prestige in the year before entering the ECCE workforce

41.3 44.6 32.3 33.4 51.4 54.1

Center‐based workers Home‐based workers School‐based workers

Distribution of the workforce by educational attainment

* denotes change with respect to 1990 or 1992 is statistically significantly different from zero at the 5% level. Source: Authors based on the March Supplement of the Current Population Survey.

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Table3.DecompositionoftheoverallchangesinthecharacteristicsoftheECCEworkforce(1990‐2010)

Center‐based workers

Home‐based workers

School‐based workers

Less  than high school ‐8.8 (65%) ‐4.7 (35%) 12% 88% 0%High school  degree ‐4.0 (84%) ‐0.8 (16%) 28% 39% 32%Some col lege or Associate's  degree 7.4 (84%) 1.4 (16%) 19% 73% 8%At least a  Bachelor's  degree 5.4 (58%) 3.9 (42%) 16% 71% 13%

Mean annual earnings of all workers (at 2010 dollars) 42% (78%) 12% (22%) 37% 55% 8%

Mean hourly earnings of full‐year workers (at 2010 dollars) 25% (72%) 10% (28%) 35% 60% 4%

Share of workers with pension and/or health benefits paid at least partly by the employer

4.3 (48%) 4.7 (52%) 41% 45% 14%

Industry turnover rate ‐8.1 (86%) ‐1.3 (14%) 53% 44% 4%

Average occupational prestige in the year before entering the ECCE workforce

2.1 (49%) 2.1 (51%) 58% 28% 14%

2009 vs . 1990

2010 vs . 1990

2010 vs . 1992

2009 vs . 1990

2010 vs . 1990

Panel ASector contributions to the part of the change attributable to changes in the 

characteristics of workers within the sectors 

Change attributable to changes in the characteristics of workers within the sectors 

Change attributable to changes in the distribution of 

workers across sectors

Distribution of the workforce by educational attainment

Panel B

2010 vs . 1992

Changes in the share of workers by educational attainment, the share with pension and/or health benefits, and the industry turnover rate are measured in percentage points; changes in annual and hourly earnings, as a percent change; and changes in the average occupational prestige score of those entering the ECCE workforce, in percentiles. Source: Authors based on the March Supplement of the Current Population Survey.

25  

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