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Maternal input choices and child cognitive development: testing for reverse causality

ABSTRACT I assess whether the results of child achievement tests affect maternal employment and the child-care choices of mothers with prekindergarten children. To test this hypothesis, I use a quasi-structural approach to form approximations to the mother’s employment and child-care decision rules and jointly estimate them with the child cognitive development production function and wage equation. Using a sample of single mothers from the NLSY79, I find evidence that maternal employment and child-care decisions are sensitive to past achievement scores. In particular, a mother whose child has taken the Peabody Picture Vocabulary Test before entering kindergarten and whose child’s standardized test score is above a certain threshold intends to use childcare more and work more part-time hours immediately after observing the child’s performance on the achievement test.