An economic analysis of kin-provided child care

P. D. Brandon

Institute for Research on Poverty Discussion Papers from University of Wisconsin Institute for Research on Poverty

Abstract: This paper develops and evaluates a model of a mother's choice of kin-provided child care. Little is known about the choice of kin-provided child care, particularly within the context of intrafamily in-kind transfers. Despite this, kin-provided child care is extensively used, and its use affects family economic well-being. Using data from the National Longitudinal Survey of the Class of 1972 (NLS'72), this study shows that variables affecting maternal use of market-provided child care also affect use of kin-provided child care. The study also reveals that the effects of variables on the choice of kin-provided child care are misleading when the direction of other in-kind transfers between a mother and her extended family is ignored. Estimated coefficients change sign and size depending upon whether a mother was giving material assistance to members of her extended family.

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