The effect of a change in school expenditure decisions on the amount of tim
e mothers devote to child care is examined. The results demonstrate that sc
hool expenditure is important in determining mother's child care time. Furt
hermore, empirical study Shows that there is a crowding-out effect between
school expenditure and mother's child care time in the lesser-educated fami
lies. This finding implies that existing studies have overestimated the tru
e effect of school expenditure on student performance, because they have ig
nored this crowding-out effect. (C) 2001 Elsevier Science Ltd. All rights r
eserved. JEL classification: I21.