Child Care Arrangements: Determinants and Consequences

This report summarizes the most recent empirical research on the effects of non-parental and household time investments on child development. The results from the studies considering non-parental child care policies are presented taking into account the timing of the intervention. The majority of large-scale policies providing non-parental child care have positive effects on children's cognitive outcomes, both in the short and in the medium run. Early childhood policies can have long lasting effects on adult outcomes, also boosting the development of noncognitive skills. The empirical results of the literature assessing the effects of time and income investments within the household show that while maternal time is crucial for child development, the father’s and grandparents’ time may also be important. There is already some evidence that the father’s time can be a good substitute for maternal time, especially when the child grows up.