This study tests the two assumptions underlying popularly held notions that maternal employment negatively affects children because it reduces time spent with parents: (1) that maternal employment reduces children's time with parents, and (2) that time with parents affects child outcomes. We analyze children's time-diary data from the Child Development Supplement of the Panel Study of Income Dynamics and use child fixed-effects and IV estimations to account for unobserved heterogeneity. We find that working mothers trade quantity of time for better “quality” of time. On average, maternal work has no effect on time in activities that positively influence children's development, but it reduces time in types of activities that may be detrimental to children's development. Stratification by mothers’ education reveals that although all children, regardless of mother's education, benefit from spending educational and structured time with their mothers, mothers who are high school graduates have the greatest difficulty balancing work and childcare. We find some evidence that fathers compensate for maternal employment by increasing types of activities that can foster child development as well as types of activities that may be detrimental. Overall, we find that the effects of maternal employment are ambiguous because (1) employment does not necessarily reduce children's time with parents, and (2) not all types of parental time benefit child development.

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What happens to children's long-run cognitive development when introducing universal high-quality childcare for 3-year-olds mainly crowds out family care? To answer this question, we take advantage of a sizeable expansion of publicly subsidized full-time high-quality childcare for 3-year-olds in Spain in the early 1990s. Identification relies on variation in the initial speed of the expansion of childcare slots across states. Using a difference-in-difference approach, we find strong evidence for sizeable improvements in children's reading skills at age 15 (0.15 standard deviation) and weak evidence for a reduction in grade retentions during primary school (2.5 percentage points). The effects are driven by girls and disadvantaged children.

The role of curricular activities for the formation of education, health and behavioural outcomes has been widely studied. Yet, the role of extra-curricular activities has received little attention. This study analyzes the effect of participation in sports clubs—one of the most popular extra-curricular activities among children. We use alternative datasets and flexible semi-parametric estimation methods with a specific way to use the panel dimension of the data to address selection into sports. We find positive and robust effects on children’s school performance and peer relations. Crowding out of passive leisure activities can partially explain the effects.