We analyse a model in which families may either be “traditional” single-earner with caring for the child at home or “modern” double-earner households using market child care. Family policies may favour either the one or the other group, like market care subsidies vs. cash for care....

Does the number of future anticipated children affect educational investment in parents-to-be? In theory, anticipated children can affect the returns to education, the resources available for family consumption, and the incentives for pre-marital investment. Changes in the eligibility criteria...