Pay Equity Fund Transforms Child Care Workforce in Washington, D.C.
The Early Childhood Educator Pay Equity Fund has been a game-changer for child care workers in Washington, D.C. Introduced in 2022, the fund aims to elevate the wages of child care workers to match those of public school teachers, funded by a tax increase on high earners.
Boniece Gillis, an assistant teacher at Educare DC, initially approached the news with skepticism but now acknowledges the transformative impact on her life. “I was like, I’ll believe it when it comes,” she recalls. With the implementation of the fund, Gillis, along with approximately 4,000 other child care workers, has experienced significant wage increases.
Financial Stability and Workforce Retention
The fund has successfully increased the annual wages of D.C.’s child care workers by over $10,000 on average, leading to greater job stability. As a result, there’s been a noticeable decrease in turnover, making it easier for child care centers to maintain experienced staff. This, in turn, has improved the quality of care provided to children.
Erica Greenberg from the Urban Institute highlights the significance of these changes, saying, “We know now what a big change it has brought to people’s lives. It was long overdue.”
Economic Impact and Benefits
Research conducted by Owen Schochet from Mathematica shows that the Pay Equity Fund has boosted child care employment by nearly 7% in the city, equating to 219 additional teachers. Together with economist Clive Belfield, Schochet found that the program yielded a 23% return on investment by reducing absenteeism, improving care quality, and minimizing turnover.
“The last time I went to my bank and asked for a rate of return of 23%, they showed me the door,” Belfield humorously noted during an event unveiling their research.
Life-Changing Wage Increases
The wage increases have been particularly timely for many educators. Gillis, who considered returning to a higher-paying job in real estate, now finds fulfillment and financial stability in her teaching role. “Now, I’m able to do something I’m really good at, that I have a passion for, that I love — and I’m able to be financially compensated for that,” she shares.
Similarly, Jamie Gipson at Ideal Child Care Development Center has utilized the extra income to purchase a home, providing her family with much-needed space. Her hourly wage has risen to $30, thanks to the fund and a promotion, making her feel more recognized and appreciated as an educator.
Challenges and Future Outlook
Despite the successes, the program faces challenges. D.C. has not seen a rise in the number of child care facilities, indicating potential limits to growth. Additionally, some administrators feel the strain, as they don’t receive the same wage benefits, leading some to consider role changes to qualify for the fund.
Another issue is the “benefits cliff,” where increased wages disqualify some teachers from public benefits, negating the financial gains. Greenberg describes it as a “sad statement on the state of financial well-being among early educators.”
Looking ahead, the fund’s future is uncertain. While the D.C. Council restored funding following budget cuts proposed by Mayor Muriel Bowser, concerns remain about its longevity. Yves-Carmel Decelian-Cadet, director of Ideal Child Care Development Center, emphasizes the necessity of the fund, stating, “We need that money to survive.”
