With more than 70 percent of its population living in cities, Latin America and the Caribbean (LAC) is among the most urbanized regions in the world. Yet, although its cities are, on average, more productive than those elsewhere in the world, their productivity lags that of North American and...

We develop and estimate a model of child care markets that endogenizes both demand and supply. On the demand side, families with a child make consumption, labor supply, and child-care decisions within a static, unitary household model. On the supply side, child care providers make entry, price,...