We believe that true capacity building requires both sound public policy and entrepreneurial innovation. To that end, First Entrepreneurial and YWCA Alaska have partnered to propose and launch a pilot to develop worker-owned cooperative child care operations. The project was funded by ACCEE in July 2025.
Why a cooperative owned by workers? They offer an evidence-based solution to the challenges facing Alaska’s child care system. Research consistently shows that members of worker cooperatives report higher wages, less burnout and greater job satisfaction compared to traditional workplaces. Their democratic ownership model prioritizes worker well-being over absentee investors. According to an Aspen Institute report, worker cooperatives are more resilient to economic shocks and have lower turnover. When employees participate directly in decision-making, they are more invested in their work and the long-term success of the enterprise.
There is evidence that the kinds of problems that worker-owned cooperatives seek to address exist within the childcare sector. An analysis of the 2019 National Survey of Early Care and Education by the Federal Reserve Bank of Minneapolis (April 29, 2022) found that teacher turnover is significantly higher in centers with lower wages, concluding that raising pay is the solution to retaining early childhood educators in the lowest-paid positions. We rely on these providers to care for our young ones. A happy, healthy and stable workforce is the foundation for raising happy and healthy children. By design, worker-owned cooperatives foster employee satisfaction and create living-wage jobs.
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