June 9, 2026
States are increasingly investing in early childhood care and education (ECE). How can they ensure their investments will pay off in supporting working families—facilitating parents’ employment and supporting children’s healthy development?
Fortunately, there’s a large and growing evidence base that policymakers in states and other localities can use to design the most effective ECE investment strategies. Upjohn Institute Senior Economist Chloe Gibbs, in conjunction with the Washington Center for Equitable Growth, recently answered policymakers’—and parents’—frequently asked questions. The FAQ is aimed at civic leaders navigating the fragmented ECE landscape and trying to address the challenges faced by families, providers, and policymakers. Gibbs dives into the evidence to find what works, what doesn’t work, and how to effectively expand access to high-quality ECE.
Understanding ECE is critical. Nearly 55 percent of children under age six and not yet in school are in some kind of regular, nonparental care. But options for formal (and higher-quality) child care arrangements are often limited by high prices, lack of access, and ECE staff turnover.
Gibbs’ recommendations include:
- Supporting the “demand side” of the market by expanding eligibility for parent subsidies and making them more generous. By providing families with greater resources to access the ECE market, participation can expand, helping to support parents’ labor force participation.
- Expanding the “supply side” through direct provision of programs such as Head Start or by offering incentives to providers of child care slots in high-need and underserved areas. These actions can improve access in areas where child care slots fall short of families’ needs.
- Investing in the stability of the ECE workforce with retention bonuses, wage subsidies, and other innovative efforts that improve compensation and working conditions. Providers must not only find qualified workers, but also retain them. The evidence suggests that improvements in compensation and working conditions for caregivers lead to higher-quality care environments and better outcomes for children.
Experts
