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Beyond Time and Money: Parental Occupation and Early Childhood Development

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  • Hyun Soo Suh

Abstract

This paper examines how parental occupation shapes early cognitive and noncognitive child development. Using the Millennium Cohort Study and the British Household Panel Survey, I document that parents allocate time in home production and market work differently across occupations. Estimating a system of simultaneous equations through three-stage least squares, I find that parental occupation is an important determinant of child skill formation beyond time and money: Maternal employment is associated with higher cognitive and noncognitive skills, while paternal self-employment is associated with higher noncognitive skills. Returns to parental time are higher among college-educated parents, consistent with skill-biased parenting.

Suggested Citation

  • Hyun Soo Suh, 2026. "Beyond Time and Money: Parental Occupation and Early Childhood Development," AEA Papers and Proceedings, American Economic Association, vol. 116, pages 605-610, May.
    • Handle: RePEc:aea:apandp:v:116:y:2026:p:605-610
    DOI: 10.1257/pandp.20261122
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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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