One Says Goodbye, Another Says Hello: Turnover and Compensation in the Early Care and Education Sector
Working Paper 31869
DOI 10.3386/w31869
Issue Date
The quality of the early environment children experience influences their human capital development. We investigate retention and compensation in the Early Care and Education workforce by merging datasets from three different government agencies in Texas. We employ non-structural methods to compare turnover and pay in Early Care and Education with those in other sectors that employ similar workers. We estimate a dynamic discrete choice occupational model to quantify the labor supply and turnover elasticities in this industry. In addition, we simulate the impact of wage supplementation programs.