Full Citation

Title: Money vs. Time: Family Income, Maternal Labor Supply, and Child Development

Citation Type: Journal Article

Publication Year: 2018

ISBN:

ISSN: 1556-5068

DOI: 10.2139/ssrn.3102271

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Abstract: We study the effect of family income and maternal hours worked on child development. Our instrumental variable analysis suggests different results for cognitive and behavioral development. An additional $1,000 in family income improves cognitive development by 4.4 percent of a standard deviation but has no effect on behavioral development. A yearly increase of 100 work hours negatively affects both outcomes by approximately 6 percent of a standard deviation. The quality of parental investment matters and the substitution effect (less parental time) dominates the income effect (higher earnings) when the after-tax hourly wage is below $13.50. Results call for consideration of child care and minimum wage policies that foster both maternal employment and child development.

Url: https://ssrn.com/abstract=3102271

Url: https://www.ssrn.com/abstract=3102271

User Submitted?: No

Authors: Agostinelli, Francesco; Sorrenti, Giuseppe

Periodical (Full): SSRN Electronic Journal

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Volume:

Pages:

Data Collections: IPUMS CPS

Topics: Family and Marriage

Countries: