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Parents with children enrolled in a universal pre-kindergarten program in New Haven, Connecticut, increased their earnings by an average of 20.9%, according to a working paper published by the National Bureau of Economic Research this week.
Families had more money because the pre-K reduced their child care costs while also enabling them to work more hours.
The study is sure to be ammunition in Minnesota’s longstanding debate about child care and universal pre-K, which has been a priority of some progressives for years. Former Gov. Mark Dayton made a strong push for pre-K in 2015 but was thwarted by the GOP-controlled House.
“Universal pre-K” refers to programs that are free and aren’t means-tested, meaning they are available to all families regardless of household income. The New Haven program in the study had a limited number of slots, which were distributed using a lottery system, allowing researchers to compare the outcomes of families in the program to those who didn’t get a slot.
The authors found that for every dollar spent by the government to support the program, parents took home an additional $5.50, a better return on investment than the federal income tax cuts of the 2000s and the earned income tax credit.
The New Haven universal pre-K program offered up to 10 hours of child care per day — which was key to the study’s findings.
Parents whose children were enrolled in the universal pre-K program got an average of 11 more hours of child care coverage per week, compared to parents of children in other child care programs.
The additional child care coverage allowed parents to work an average of 12 hours per week more than parents with other forms of child care — and reap the economic benefits.
Parents with children in other child care programs caught up to the hours and earnings of universal pre-K parents by the time their kids entered middle school.