Child care workforce retention incentives positively impact these policy goals:
SUMMARY
Child care workforce retention incentives positively impact these policy goals:
Child care workforce retention incentives are temporary financial relief provided by the state which are intended to motivate early educators to stay in the field of early childhood education. Rather than increasing wages directly, these retention incentives may be in the form of cash bonuses, tax credits, or scholarship stipends. Rigorous evidence shows that these incentives can effectively reduce teaching staff turnover, which might further promote child care quality and learning outcomes. Current evidence does not provide clear guidance on the best method for states to develop strategies or provide funding to support child care workforce retention incentives.
Low wages in the child care and education field are common in the US, particularly among early educators and caregivers working with infants and toddlers. Child care workforce retention incentives can ameliorate the effects of low pay and reduce staff turnover among early educators. Retaining experienced early educators not only can lead to better teacher-child interactions and higher classroom quality but also help build a sustainable workforce.
Download the Complete Evidence Review
Child Care Workforce Compensation Evidence Review (PDF)
Recommended Citation:
Prenatal-to-3 Policy Impact Center. (2025). Prenatal-to-3 policy clearinghouse evidence review: Child Care Workforce Retention Incentives. Peabody College of Education and Human Development, Vanderbilt University. https://pn3policy.org/policy-clearinghouse/child-care-workforce-retention-incentives/
Updated June 2025
