"This study analyzes work, childcare arrangements, and earnings of mothers in the poor neighborhoods of Guatemala City and Greater Accra, Ghana, two urban areas where formal- and informal-sector work differ in importance. Unlike previous studies on childcare that take mother's work status as given, this paper treats childcare choice and labor force participation of women as joint decisions. Our empirical results indicate that participation in the labor market and use of formal day care are, in fact, jointly determined.