Approaches to Improving Early Educators’ Compensation

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Early educators remain among the most underpaid workers in the nation despite playing a critical role in child development and enabling workforce participation for parents. Across the country, the median wage for early educators is $13.07 per hour—lower than 97 percent of all other occupations.

Inadequate compensation drives annual turnover rates between 15 and 25 percent for early educators, while the lack of stable infant and toddler care costs the country $122 billion annually in lost earnings, productivity, and revenue.

Several states are implementing innovative approaches to address these workforce challenges, including:

  • Wage supplements that raise educators’ pay to defined salary levels, with some states aligning early educator compensation with public school teacher salaries
  • Bonuses and stipends that provide regular financial support, with research showing these programs can increase educator retention and reduce turnover
  • Tax credits tailored to early educators’ needs
  • Benefit supports including health care, retirement plans, and subsidized child care for the workforce

This brief examines the types of policy approaches states are taking and provides concrete examples from states across the country. By understanding these pathways from policy to practice, states can strengthen their early learning systems to better support educators, families, and children in their own communities.

Explore strategies from across the country.

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