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One Says Goodbye, Another Says Hello: Turnover and Compensation in the Early Care and Education Sector

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  • Flavio Cunha
  • Marcos Lee

Abstract

The quality of the early environment children experience influences their human capital development. We investigate retention and compensation in the Early Care and Education workforce by merging datasets from three different government agencies in Texas. We employ non-structural methods to compare turnover and pay in Early Care and Education with those in other sectors that employ similar workers. We estimate a dynamic discrete choice occupational model to quantify the labor supply and turnover elasticities in this industry. In addition, we simulate the impact of wage supplementation programs.

Suggested Citation

  • Flavio Cunha & Marcos Lee, 2023. "One Says Goodbye, Another Says Hello: Turnover and Compensation in the Early Care and Education Sector," NBER Working Papers 31869, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31869
    Note: CH
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    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

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