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This paper moves beyond the typical correlates of individual mothers' decisions to participate in market work and to use non-maternal child care by examining how child care availability in the community relates to families' arrangements for employment and child care in communities of varying income level and population density. We measure center child care availability in all U.S. ZIP codes using several business-level data sources (Economic Census, ZIP code Business Patterns) and a Special Tabulation of the 1990 Decennial Census, the latter of which also provides an estimate of family day care availability. Descriptive analyses suggest that center care is more available when both a sufficient population base and a source of income (private of subsidies) are present, as in low and high income urban areas. In contrast, family day care is most available in middle income, non-metropolitan areas. Using data for 3- to 6-year olds in the geocoded Children of the NLSY data set, we (1) jointly predict whether a woman works in the market and whether she places her child in another's care and (2) simultaneously predict the number of hours employed mothers' work and the hours their children spend in relative care, center-based care, and family day care. Findings suggest that available care may be necessary for some mothers to enter the market work or to select a type of child care, especially in the non-metropolitan areas of the U.S.

This paper studies the link between the expected consequences or income prospects at divorce and the decision to become divorced. The economic model utilized predicts that divorce will occur when the present value of opportunities after divorce exceeds the return to continuing the marriage. These opportunities, measured over time, include the economic value attached to a possible remarriage, as well as income from employment, welfare, alimony, and child support payments. The empirical analysis utilizes data from the Young Women's cohort. Preliminary results show that income gains expected from continuing the marriage reduce the probability of divorce, but income prospects expected at divorce have no significant effect on the probability of divorce for these women.