Mother’s Time Allocation, Childcare, and Child Cognitive Development

Abstract

This paper analyzes the effects of maternal and nonparental time on a child’s cognitive development. Using data from the Panel Study of Income Dynamics, we estimate a model that allows the mother’s time productivity to depend on her education level and that distinguishes between formal and informal care. The results show that childcare time of high-educated mothers is more productive than that of low-educated mothers and that of nonparental care. The simulation of policies subsidizing mothers’ wages or regulating the nonparental care market indicates that children with low-educated mothers benefit more from replacing maternal time with nonparental time.