Investing for Tomosrrow: Projecting the Long-Term Impact of Early Childhood Education and Care in Australia

The medium to long-term impact of Early Childhood Education and Care (ECEC) on the Australian education system and labour market is investigated. The simulation results suggest that increased ECEC quality yields greater participation in education and a reduction in rates of school-leavers being unemployed/Not-In-Labour-Force; further, an increase in coverage of ECEC is projected to noticeably reduce the number of people Not-In-Labour-Force and unemployed and increase the number of employed. Findings highlight the need for ECEC policy to adopt a balanced approach to promoting both ECEC access and quality, to maximise education and labour market outcomes.