The Economic Power of Early Care and Education

Overview

The Insight Center developed the early care and education (ECE) economic impact model to inform policy-makers, business leaders, and economic development leaders about the economic importance of ECE. The model demonstrates that ECE does more than provide nurturing, educational environments for children - it also plays a vital role in the economy.

The components of the model can be customized, but typically include an in-depth, geographically specific economic analysis that quantifies ECE's contribution to the economy, and a corresponding action plan to strengthen the ECE system. The Insight Center has conducted research, and published more than 40 economic impact reports for counties and states all over the country. These reports document the link between ECE, economic development, and business productivity, and reframe ECE as an economic driver. The Insight Center also trains local, state, and national leaders to conduct the research necessary to produce economic information about ECE, and works with local partners to develop and deliver effective messages that motivate targeted audiences to act.

Outcomes

ECE leaders, often in partnership with the Insight Center, use this information to engage new stakeholders in an ongoing, collaborative dialogue, which helps spark change in investment strategies and programs to grow and sustain the ECE industry. This work has helped to promote innovation across the country:

• In Minnesota, state business leaders formed the Minnesota Businesses for Early Learning which focuses on the role of business in the early learning and school readiness of pre-kindergarten children. In addition, the newly formed Minnesota Early Learning Foundation (MELF), is funding a pilot initiative to offer scholarships for quality early care and education to low-income families for quality.
• The Massachusetts House of Representatives adopted legislation that consolidated existing ECE programs and services under a new, independent Board and Department of Early Education and Care, which streamlines and coordinates diverse ECE programs.
• The North Carolina Chamber, the state's Chamber of Commerce, invited the president of the North Carolina Partnership for Children to join its education workgroup. This invitation demonstrates the Chamber's understanding that ECE is part of North Carolina's education system, and also enables the ECE leader to become part of the discussion about preparing the future workforce.
• In Illinois, findings in the economic impact report were used to provide testimonies to the Illinois General Assembly and at over 30 public hearings. The testimony was integrated with other advocacy efforts to secure funding for the statewide ECE budgets.

The Insight Center builds on this work through the All on Board for Children initiative, which promotes strong ECE systems through collaboration, communication, and policy development, and ECE Power, an on-line tool that provides information on successful strategies for boosting the economic power of ECE.