Having Gran look after the kids while parents work may hamper children's development, says a British study.
Research to be published this month in the Economic Journal followed 7000 children up to the age of seven.
It found some parents who used the unpaid childcare services of a family member could be better off choosing high-quality centre-based childcare.
Grandparents may be out of touch with modern methods of raising children and physically unable to keep up.
But the author of the study, Paul Gregg, said it was only children from more advantaged households who experienced detrimental effects from being cared for by relatives.
Other findings should give comfort to mothers contemplating returning to work.
The research showed a child's development was not affected if a woman returned to work within 18 months of the birth, as long as she chose high-quality childcare.
Sue Thorne, chief executive officer of New Zealand's Early Childhood Council, said the most important thing for children was that parents had choice in child care.
"If the parent has a family member care for children, not as a first choice but because of financial restraints, it may not be the best," she said. "But if it is done for the right reasons, it should be absolutely respected."
New Zealand had a wide range of childcare options and subsidies made them affordable for most parents.
Lianne Woodward, from the Education Department of Canterbury University, said no systematic evaluation of the impact of differing types of childcare on New Zealand children had been done.
However, if grandparents were healthy, well and engaged with the children, it was a "fantastic" form of care.
"Grandparents are often significant people in the children's lives," Ms Woodward said. "However, if there are significant health issues or the children are merely being minded, it may not be the best choice. It is the quality of the care that matters rather than one choice being better than another."
Dot Capon, senior lecturer at the Christchurch College of Education, said qualifications of staff at childcare centres were important in assessing good quality early childhood education.
A United States study on the effect of childcare on children's development showed children who spent time in high-quality childcare centres showed more advanced language and thinking skills than those getting home-based care.
- NZPA
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