Why universal preschool is a good economic bet for our region, and critical to attracting young families

Nothing tops Universal Preschool as an economic development strategy

By Mary King, Economist and Professor Emerita, Portland State University

We’ve heard a lot of discussion in the local media about taxing at the top to fund Multnomah County’s universal early-childhood program, Preschool for All. Economists who have studied the impacts will tell you nothing tops universal preschool as an economic development strategy.  

Here’s why:

The best measure of economic development is better jobs for more people, not increasing the number of jobs or the size of the population. A strong universal preschool program is the single best way to raise per-person income. At the metro level, it’s twice as effective at raising local incomes as the best-targeted business subsidies or tax breaks.  

A free, high-quality universal preschool program is hugely attractive to young families. Childcare costs as much as rent or a mortgage, while young families also struggle with high housing costs and student debt. Metro areas should strive to attract the most mobile people in the U.S., who are young professionals, ready to put down roots, build careers, and raise families. According to researcher Cristobal Young, it's a far better strategy to attract the high-income families of the future than to worry about keeping older, high-income households that rarely move.

The benefits of universal preschool are widely spread throughout the community.  Participating kids ready to succeed - and feel successful - in kindergarten are more likely to graduate from high school, go to college, earn more, and avoid unemployment, early childbearing, substance abuse, and incarceration. Not only do the kids enrolled earn more as adults, but so do their parents, their siblings, and their own children.

A skilled local labor force attracts new businesses, raising wages for everyone.

Businesses benefit from lower absenteeism, higher productivity, and better retention of skilled, experienced employees when workers have good, reliable childcare. Local businesses are better supported, tax revenues grow, and public expenditures fall.  Special education costs are cut, as are crime, poverty, and disparities by race, gender, and class background.

Universal preschool programs allow more parents to work longer hours, get more training, and gain on-the-job experience, especially if preschool is available year-round and full-time. One mother of a child enrolled in Multnomah County's Preschool for All program was able to stop working a low-wage job at night and finish her nursing degree. Now she has a much better position with benefits; she and her spouse both work day shifts, she gets more sleep, and their child is thriving.  Her parents no longer risk their own jobs to provide emergency childcare, and everyone is much less stressed.

High-quality preschool programs depend on retaining skilled, experienced, and dedicated teachers, which is only possible when teachers are paid living wages with benefits. Both teachers and families appreciate the range of Preschool for All options, including location and size of setting, language, cultural context, and schedule, including weekend days

Voters overwhelmingly passed Preschool for All in 2020 because most people recognize that when families are strong, Multnomah County is strong.

Why is there so much pushback locally about Preschool for All? Perhaps it's because the wealthy fund lobbyists to pressure elected officials to believe that business tax breaks are better. They are not. We'd be much better off to follow the evidence and invest in people, and the younger the better.  

Mary is an Emerita Professor of Economics from Portland State University. She holds a Ph.D. from the University of California, Berkeley, and is a Rhodes Scholar.