After three decades of decline, the amount of time spent by parents on childcare began to rise dramatically in the mid-1990s. Moreover, the rise in childcare time was particularly pronounced among college-educated parents. Why would highly educated parents increase the amount of time they...

This paper develops a multi-sector version of the credit matching model of Den Haan, Ramey and Watson (Journal of Monetary Economics, 2003). Households rely on specialized lenders to channel savings to productive investments. Lender expertise is sector-specific. Following a negative shock to one...