Economists have been increasingly vocal on the fiscal rationale for strategic investments in the early years.
But how to invest wisely?
In 2024, the question is urgent as provinces and territories look to the second half of the Canada-Wide Early Learning and Child Care Agreements (CWELCC) signed in 2021 with a promise of $10-a-day child care, and many scramble to meet the exploding demand for space.
Yet $10-a-day day child care remains a pipe dream for many families.
One leading Canadian economist, Craig Alexander,
has presented a strong argument for leaning on the neighbourhood public school in the push to expand early learning.
Free programs for four-year-olds
As an early childhood researcher, I waded into this conversation in 2023 by presenting international evidence for linking early education with the public school system.
Four-year-olds in Ontario, Nova Scotia and the Northwest Territories are students in their neighbourhood schools, enjoying play-based programs with their peers, free of charge.
Many four-year-olds in the rest of Canada — or at least their parents and caregivers — are searching for child-care spaces.
While Ontario, Nova Scotia and the Northwest Territories face challenges with expanding child-care spaces, one thing they’ve gotten right is taking four-year-olds out of the equation by providing them free all-day, school-based programs.
When four- and five-year-old children are provided with a full day of schooling, it can free space in child care for younger children, while strengthening the early years work force through more stable and lucrative employment in neighbourhood schools.
Evidence for financial return
In 2010, The Early Years Study 3 profiled a growing economic argument for investments in the early years and identified how this reaps a healthy financial return for governments.
Since then, many Canadian economists continue to provide evidence for this:
In 2012, Pierre Fortin and colleagues provided empirical evidence for this financial return.
In 2015, Elizabeth Dhuey joined this argument for the socio-economic rationale of strategic investments in the early years.
Post-COVID-19, Jim Stanford identified that investing in the early years was imperative to rebuilding the country’s economy.
Armine Yalnizyan coined the phrase “she-covery” in referencing the importance of child care as countries embark on post-COVID-19 economic recovery.
And, Gordon Cleveland’s 2021 economic analysis of Ontario’s use of public schools for four-year-olds authored for the Elementary Teachers’ Federation of Ontario concluded school-based four-year-old programs are much more cost-efficient than non-school based programs, and that these bring better educational outcomes for children.
International evidence for school progrmas
Alexander’s 2023 research on this issue follows his 2017 Canada Conference Board study on the long-term positive economic impact of quality early learning across lifespans and a 2012 TD economics literature review he co-authored about the widespread and long-lasting benefits of early childhood education.
His rationale for expanding early learning through schools centres around seven core arguments:
1. Schools are in every neighbourhood, helping eliminate childcare deserts. By relying on existing infrastructure and space, especially in rural areas where excess capacity exists, early learning can expand quickly at little cost to governments and at great convenience to children and families.
2. Schools deliver programs that can maximize inclusivity and diversity, boosting the impact of ELCC expansion. Alexander notes the exceptionally high enrolment of all children in free and accessible public school programs. In schools, expertise and resources exist to accommodate diverse learners through specialist educators, counsellors, psychologists and therapists.
3. School programs can provide a continuum of high-quality learning. Schools have a mandate and monitoring systems in place, to ensure quality education, strong outcomes, streamlined curriculum and smooth transitions.
4. Schools attract and retain top-quality early childhood educators and lift market competition for ECEs, which can increase compensation in the sector broadly. The stability of schools, unionized staff, higher salaries and benefits — plus better working conditions — offer early child educators not only more stable employment but career advancement opportunities and professional support.
5. Schools have economies of scale due to being part of the public sector. Most early learning centres have limited purchasing power. Neighbourhood schools are better positioned to negotiate deals through purchasing quantity that motivates efficiencies, lowers expenses and maximizes resources for programs.
6. Schools have strong governance and political accountability for outcomes. Schools excel at program accountability and monitoring, public reporting and close scrutiny. Their data collection for program assessment is easier than surveys of licensed care providers: for example, early years centres are monitored by ministry inspectors who visit periodically to ensure adherence to the regulations. School governance structures and resources are well-established.
7. Schools eliminate the risk of market-based supply disruptions (like sudden closures due to low profit margins, sick staff or damaged infrastructure like a burst pipe); they reduce the risk of politically triggered supply disruptions (like if governments decide to de-fund public child-care and early education). Schools are less precarious, allowing families a greater sense of stability and children greater continuity of care.
Alexander’s work validates the growing movement by governments relying on the neighbourhood school for children’s early learning.
It reflects existing international practice in European countries such as Spain, and emerging practice in countries like England.
It addresses the need for child-care spaces by embracing quality and viewing early learning as early education, economically wise and educationally sound.
Schools can do this better — something the province of Nova Scotia is demonstrating with their new school-based pre-primary program.
Alarms sounding for agreements
Meanwhile, alarms are sounding for the CWELCC agreements. While much has been achieved, much more is needed as many centres are at capacity and unable to expand further.
Availing of capacity in neighbourhood schools, especially in rural areas where classrooms sit empty, offers an opportunity for rapid expansion.
Craig Alexander’s advice is timely and informed.