This paper aims to broaden the discussion about effective teacher preparation by exploring three hypotheses designed to expand the early care and education (ECE) research agenda: (1) Both the content and the method of delivery of an educational degree influence teacher practices; (2) Teachers' ability to apply knowledge and skills effectively depends on whether or not they have opportunities and support for ongoing, on-the-job learning; and (3) Certain features of the work environment either support or hinder teachers in demonstrating their competence, and applying their knowledge and skills. It is the intention of the discussion to move the field of ECE beyond a narrow focus on whether or not BA degrees make a difference for children, to a wider exploration of what it takes to develop and maintain teacher instructional practices that effectively promote children's development. The report concludes that research demonstrates that certain issues and barriers are preventing many teachers of young children from doing the best they can. These obstacles include limited opportunities to pursue higher education for a degree while already working as teachers; poor levels of compensation that discourage many who have invested in their education from remaining in the field, fueling high rates of turnover among staff as well as disruption for young children; and professional development programs that are too often superficial, short-term, or disconnected from opportunities for teachers to reflect on what they have learned, discuss it with others, and apply it to daily practice. Final recommendations include urging federal leadership and support in developing: (1) Increased investment in two-year, four-year, and graduate ECE degree programs in institutions of higher education; and (2) A system of program grants for ongoing professional development for ECE teachers. The authors advocate that a sustained research agenda, based on the proposed recommendations, will go a long way toward expanding knowledge about how to assure excellent, well-prepared teachers for American children of all ages. Discussion of Methodology is appended. (Contain 5 footnotes.) [For "Preparing Teachers of Young Children: The Current State of Knowledge, and a Blueprint for the Future. Executive Summary", see ED505293. For "Preparing Teachers of Young Children: The Current State of Knowledge, and a Blueprint for the Future. Part 1: Teacher Preparation and Professional Development in Grades K-12 and in Early Care and Education: Differences and Similarities, and Implications for Research", see ED505296.]