MARKET CHILD-CARE VERSUS CARE BY RELATIVES - CHOICES MADE BY EMPLOYEDAND NONEMPLOYED MOTHERS

We study the determinants of whether mothers of preschool-aged childre n use market child care versus care by relatives to assess the importa nce of economics versus preferences. The evidence suggests that employ ed mothers turn to relatives for child care partly out of preference, not just because relatives are inexpensive. Public policies that encou rage the use of relatives for child care might therefore increase pare ntal satisfaction and quality of care. The analysis finds substantiall y similar results for African American and other women, but the result s for employed mothers differ from those for nonemployed women, who ap pear to use child care primarily to enhance child development.