The Economic Rationale for Government Investment in Early Learning and Care: a High-Level Overview

This paper, produced by the Research and Evaluation Unit (REU) at the request of the Early Years Division, provides a high-level overview of the economic reasons for government investment in Early Learning and Care (ELC*) in Ireland.

The paper is organised into three main parts. Part 1 of the paper outlines the context for public investment in ELC, focusing on key economic issues such as the public-private mix of services, non-centre based care, regulation and quality, average fees, staff qualifications and wages, and labour supply elasticity. Part 2 provides an overview of the main government-funded schemes and policies that support and govern the ELC sector, referring briefly to the exceptional funding supports introduced during the COVID-19 pandemic to ensure sector sustainability. Part 3 presents a high level overview of the key literature outlining the benefits of high quality ELC to children, families and the wider economy.

• Early Learning and Care refers to the formal and informal education and care provided to children under the age of six.