Chapter 2: Impacts of the Great Recession on Public and Private Preschool Enrollment

The Great Recession had severe consequences for K-12 education. However, little research documents its effects on early childhood education. We use nationally representative data to investigate how the recession affected public and private preschool enrollment. We also examine how impacts differed for children in higher and lower-income families. Finally, we consider whether features of states’ public preschool programs may have mitigated consequences of the recession. Findings suggest the recession led to a decline in public preschool enrollment and an increase in private preschool enrollment. Impacts were largely driven by children in lower-income families, who experienced larger decreases in public preschool enrollment relative to children in higher-income families. Finally, findings suggest states’ use of school funding formulas may have helped mitigate the impact of the recession on public preschool enrollment for children in lower-income families. Findings highlight the vulnerability of preschool systems to economic downturns and highlight a potential policy tool to mitigate adverse consequences.