Impact of Washington DC's Early Childhood Educator Pay Equity Fund

This technical report presents findings on the impacts of the Early Childhood Educator Pay Equity Fund (PEF) in Washington, DC, after two years of operation. The PEF was established to address pay disparities between child care and early education (CCEE) educators and K–12 teachers. The report details the program's effects on CCEE labor market outcomes, indicating that the PEF increased employment levels of CCEE educators by approximately 5 percent on average each quarter, with a notable increase to nearly 7 percent by the end of fiscal year 2023. Additionally, the report outlines that while the PEF positively influenced employment levels, it did not significantly affect average weekly wages for educators. The findings are based on data from the Quarterly Census of Employment and Wages, comparing outcomes in Washington, DC, with a synthetic control group. The report also discusses implications for future evaluations of the PEF's effectiveness and its role in addressing compensation inequities in the CCEE sector.