For love or money: Costs of child care by relatives

Abstract

A substantial proportion of employed mothers of young children, especially low-income mothers, use relatives to provide child care. This study uses data on interhousehold exchange of gifts, loans, and household services from the National Survey of Families and Households to examine monetary and nonmonetary costs of child care by relatives. Results show that mothers who use relatives for child care are more likely to give services and to have given gifts or loans to other relatives living outside the household than mothers using other forms of child care or mothers who are not employed. Monetary payments for child care by relatives are made more often for full-time than part-time care and less often to grandparents than to other relatives providing care. Implications for government child care assistance programs are discussed.