Parents’ Earnings and the Returns to Universal Pre-Kindergarten
Abstract
We study the economic returns to universal pre-kindergarten (UPK) through a key (and often under-measured) channel: parents’ labor supply and earnings. Using randomized admission lotteries from New Haven’s full-day UPK program, we estimate the causal effect of UPK access on parents’ work and income over time. Parents substantially increase labor supply and earnings, and these gains persist for at least six years after the UPK year. In contrast, we find comparatively small impacts on children’s test scores. The implied benefits are large: each $1 of net government spending generates about $5.51 in after-tax benefits for families from earnings gains alone.
John Eric Humphries, Christopher A. Neilson, Xiaoyang Ye, Seth Zimmerman, "Parents’ Earnings and the Returns to Universal Pre-Kindergarten", Econometrica, 2026, doi: 10.3386/w33038.
@article{ upk-laborsupply_2026,
title = "Parents’ Earnings and the Returns to Universal Pre-Kindergarten",
author = "Humphries, John Eric and Neilson, Christopher A. and Ye, Xiaoyang and Zimmerman, Seth",
journal = "Econometrica",
year = "2026",
note = "rr",
doi = "10.3386/w33038"
,
abstract = "We study the economic returns to universal pre-kindergarten (UPK) through a key (and often under-measured) channel: parents’ labor supply and earnings. Using randomized admission lotteries from New Haven’s full-day UPK program, we estimate the causal effect of UPK access on parents’ work and income over time. Parents substantially increase labor supply and earnings, and these gains persist for at least six years after the UPK year. In contrast, we find comparatively small impacts on children’s test scores. The implied benefits are large: each $1 of net government spending generates about $5.51 in after-tax benefits for families from earnings gains alone."
,
url = "https://spinup-000d1a-wp-offload-media.s3.amazonaws.com/faculty/wp-content/uploads/sites/77/2024/12/NHPS_pre_k_NBER_main.pdf"
,
url_article = "http://www.nber.org/papers/w33038"
}
Links
Press coverage
In the news
- 2025 Research Roundup: 3 Pressing Themes Shaping Early Care and Education
- Universal pre-K among the most effective labor market policies, study finds
- Why Universal Pre-K Means Parents Make More Money
- Parents enrolling their children in universal pre-K could see their income rise more than 20%
- 2025 Research Roundup: 3 Pressing Themes Shaping Early Care and Education
- Investing in Childcare Would 'Massively Increase' Parents' Earnings: Study
- Free Pre-K Gives Parents’ Income a Long-Lasting Boost
Cited in policy and practice
- Research Finds Preschool Enrollment Can Increase Parent Income
- Universal Pre-K Access and Parental Earnings
- The return on investment of pre-kindergarten programming: Evidence from Connecticut
- New Evidence Suggests Expanding Access to Pre-K is Good for the Economy
- The labor market case for early childhood education
- Investing in Early Childhood Education Pays Dividends
- Coauthors: , ,
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Status:
2nd R&R · working on it
Venue: Econometrica - Date: 2026-05-01