Abstract
The trade-off between parents' time with their own kids and market work, and its dependence on out-of-home day care is analyzed in a simultaneous equation framework. Economic incentives primarily work through decisions about market work, while the direct effects on time with children are weak. The results suggest that a change in the mother's working hours has less influence on the parents' time with their children than a change in the father's working hours. This would imply that a policy working to increase the time with people's own children should primarily influence the father's work hours. We also find that parents prefer joint activities with their children, and that out-of-home child care is not chosen as a substitute for own time with children.
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