The transition from education to work is a challenge for early childhood teachers. In this study, competence self-ratings of 348 German early childhood teachers were investigated one year before, at the end of and four months after early childhood teacher education at universities and vocational schools. Perceived competence was assessed by means of a questionnaire. Invariant from time of measurement, confirmatory factor analysis yielded one factor with child-related competences and one factor with environment-related competences. Latent difference scores analyses yielded a significant increase in both competence factors towards the end of teacher education and a decrease in child-related competences when teachers started to work in a kindergarten after graduation. The decrease in perceived child-related competences could be predicted by the teachers' ratings of the teacher education's practice orientation. The level of teacher education (university vs. vocational school) had no effect. However, the decrease in child-related competences also occurred regarding teachers who did not start to work in a kindergarten, indicating that there is no evidence for a severe "practice shock" after graduation. Results are discussed regarding professional development of early childhood teachers.