Research Finds Preschool Enrollment Can Increase Parent Income

Preschool enrollment has the potential to substantially impact parents’ incomes. Parents’ Earnings and the Returns to Universal Pre-Kindergarten, a study on the economic impact of universal pre-kindergarten (UPK) enrollment in New Haven, Connecticut, found that access to affordable, quality early learning that covers the full workday increased parent incomes both during their child’s enrollment and for at least six years beyond. 

Families who enrolled in UPK received 11.3 more hours of weekly care, or an additional 2.26 care hours per day, than those who enrolled in other child care options. Researchers found that these extra hours of care allowed parents to participate more productively in the workforce by having fewer career gaps, an increased likelihood of working a single high-earning job, and a decreased likelihood of switching industries. The immediate impact of these supports culminated in a 21.7% increase in parents’ earnings during this one-to-two year pre-K program, or about $5,464 more per year for each parent. 

Additionally, these impacts persisted through the fifth grade by allowing parents to incite and maintain better career trajectories with fewer disruptions. For the next six years, parents who were able to enroll in this program earned on average $42,394 compared to the $35,920 in earnings of parents who were unable to enroll, a difference of $6,474 per year. Overall, a cost-benefit analysis found that the cost of subsidizing the program was largely covered through the increased tax revenue generated by participating parents as a result of their higher earnings.

With an estimated return of ten dollars in benefits per dollar invested, this study demonstrates the importance of extended hour programming and the considerable impact reliable, accessible care can have on families in the short- and long-term.