Here’s what recent research tells us about the widespread benefits of spending on children.

For employers

Employers see benefits for their employees and businesses when families have child care and early education supports.

Even before the pandemic, employers reported interest in providing family supports. In a 2019 study, employers reported that market conditions affecting competition for talent were important factors in their support for child care.

But those employers saw a primary role for public policy around paid leave and child care. They reported feeling ill-equipped to provide child care, perceived child care benefits as costly, and saw child care as more of a public responsibility than an employer one.

For taxpayers

Evidence shows investing in young children yields high dividends. Every dollar spent on early care and education (ECE) is estimated to lead at least $3 in cost savings.

Research shows children attending high-quality ECE programs are more likely to enter school ready to learn, advance in school, and succeed academically and socially than unenrolled children.

In the long run, high-quality early childhood programs can help children grow into healthy adults who can support themselves and contribute to economic growth.

For retirees

Retired Americans have a vested interest in ensuring parents are paying into Social Security. The Social Security Administration projects that by next year, annual Social Security revenues will fall short of costs. But the pandemic has led to a dramatic decline in workforce participation, including among the ECE workforce.

If parents don’t have the support they need to be able to work, the Social Security shortfall will likely be exacerbated. Fully funding child care subsidies to support quality ECE could incentivize parents with young children to work and pay into Social Security.

Read the full article about early care and education by Diane Schilder and Heather Sandstrom at Urban Institute.