In-Home Training and the Production of Children's Human Capital

This paper adapts the idea of on-the-job training (OJT) to investments that families make in children before formal schooling begins. Like OJT, in-home training occurs in informal settings, requires costly time inputs and is complementary with formal schooling. In addition to choosing among home production, leisure, and market work, parents also choose which particular home activities to pursue. That working mothers dramatically reduce the time they devote to leisure, sleep, and other home activities in order to preserve their time in human capital-building activities with children, illustrates and validates the home production framework.