Using a model that addresses the potential endogeneity of employment hours on mothers' child care time and vice versa, by including instruments based on parental attitudes, we find a significant negative (but inelastic) relation between the two time uses.

Increasing earnings inequality has been an important feature of the US and UK labour markets in recent years. The increase appears to be related to an increased demand for skilled labour and an increase in the returns to education. In this paper we examine what has happened to earnings...