This report represents the second phase of an ongoing longitudinal study of children in different child-rearing environments in Sweden: children's own homes, "day" homes and day care centers. One hundred and two of the 120 original families participated in the follow-up. The children had reached an age of 5 1/2 years. Four areas investigated were: evolution of home settings over the four-year period of the study, children's interactions with adults and peers in day care centers and homes, the influence of adult- and peer-imposed norms on children, and overall development of the children. Interviews, observations and outcome measures were used. Although the two groups of families who entered the study when their children were one year old were carefully matched for maximum comparability, after four years children in center care were (1) more likely to have only one parent in the home, (2) have no brothers or sisters, (3) live in apartments, and (4) be girls. Peer interaction was more frequently observed than adult interaction in both the homes and the centers. Boys were more peer group-oriented. Differences in overall development were to a large extent sex-related, rather than setting-related. It was concluded that: neither the home nor the day care center was superior or inferior to the other in promoting the overall development of the children. There are substantial differences between boys and girls in social interaction patterns, activities, and cognitive performances. Sex differences are more pronounced than differences found between different child care environments. (Author/RH)