D.C. Equity Fund Boosts Early Childhood Educators, Study Finds
Posted by Spotlight on Poverty and Opportunity on July 9, 2024
In this Spotlight Exclusive, we speak with Mathematica researcher Owen Schochet about the labor market impacts of Washington, D.C.’s Early Childhood Educator Pay Equity Fund (PEF). The PEF, launched in 2022, addresses pay disparities by providing annual supplement payments of $10,000 to $14,000 to over 4,000 early childhood educators. Schochet explains that the fund, supported by increased taxes on high earners, boosted educator wages by about 40% and increased the number of child care educators in D.C. by 7% compared to control groups. Schochet says that while D.C. Mayor Muriel Bowser initially proposed eliminating funding for the PEF, “Phil Mendelsohn, the chairman of the council, opposed that and thanks to the work of advocates—and I’d like to think our evidence was helpful—the fund was added back in and restored at $70 million.” The program’s success has sparked interest, though similar initiatives have yet to be implemented on such a large scale elsewhere.
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