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Item Restricted Maternal employment and child cognitive development in Cebu(2010-04) Galvez, Julio Miguel C.; Esguerra, EmmanuelThis study investigates the impact of maternal labor supply on child cognitive development in the province of Cebu. Compared to previous studies on the subject, this study makes a significant contribution to the literature by examining the effect of the location of the mother's work on her labor force participation decision, and consequently, on her child's development, as it reflects the different dynamic of labor force participation in developing countries like the Philippines. Using instrumental variables methods to control for the endogeneity of maternal labor supply, we find that while maternal employment may positively affect a child's cognitive outcomes, the location of the mother's employment exerts a more significant impact on her child's test scores. The results suggest that a mother who works at home contributes more to her child's development than a mother who works in the neighborhood or in the barangay, as taking work at home allows her to fulfill her dual roles of caregiving and co- breadwinning. On the other hand, a mother who has attained higher educational outcomes would do well to undertake formal market work, as the income that she receives enables her to· purchase high-quality substitutes for her child care, which will then create a positive impact on her child's development.