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Tackling the endogeneity of fertility in the study of women's employment in developing countries: Alternative estimation strategies using data from urban Brazil

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Author Info
Rachel Connelly
Deborah DeGraff
Deborah Levison
Brian McCall

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Abstract

Opinions differ about whether family structure, especially fertility, should be considered endogenous in models of behavior in developing countries. Faced with a dearth of good instruments, mainstream researchers often urge working in reduced form and, therefore, losing variables of policy interest or limiting the type of questions they ask to those where good instruments are available. Rather than treating endogeneity as a yes or no characteristic, we suggest instead that researchers consider the likely magnitude of endogeneity bias before moving to reduced form. Facing a situation where endogeneity bias is often presented as a concern but where we expect little endogeneity bias, we tackle endogeneity using multiple econometric techniques not available to the average researcher. We find support for our hypothesis that little bias arises due to the assumption of exogeneity of recent fertility in a model of women's employment.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Feminist Economics.

Volume (Year): 12 (2006)
Issue (Month): 4 (October)
Pages: 561-597
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Handle: RePEc:taf:femeco:v:12:y:2006:i:4:p:561-597

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Related research
Keywords: Economics of the family female labor-force participation fertility household models endogeneity JEL Codes: D1 D

References listed on IDEAS
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  1. Jaisri Gangadharan & Joshua Rosenbloom & Joyce Jacobson & James Wishart Pearre III, 1996. "The Effects of Child-Bearing on Married Women's Labor Supply and Earnings: Using Twin Births as a Natural Experiment," NBER Working Papers 5647, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Heckman, James J, 1990. "Varieties of Selection Bias," American Economic Review, American Economic Association, vol. 80(2), pages 313-18, May.
  3. McCall, B.P., 1993. "Unemployment Insurance Rules, Joblessness, and Part-Time Work," Papers 93-07, Minnesota - Industrial Relations Center.
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  4. Thomas Mroz, . "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," University of Chicago - Population Research Center 84-8, Chicago - Population Research Center. [Downloadable!]
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  5. David C. Ribar, 1999. "The socioeconomic consequences of young women's childbearing: Reconciling disparate evidence," Journal of Population Economics, Springer, vol. 12(4), pages 547-565. [Downloadable!] (restricted)
  6. Nelson, Julie A, 1994. "I, Thou, and Them: Capabilities, Altruism, and Norms in the Economics of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 126-31, May. [Downloadable!] (restricted)
  7. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-77, June. [Downloadable!] (restricted)
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  8. McCall, Brian P., 1992. "A note on the identifiability of a dynamic binary choice model with state dependence," Economics Letters, Elsevier, vol. 40(3), pages 273-280, November. [Downloadable!] (restricted)
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  9. Connelly, Rachel, 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 83-90, February. [Downloadable!] (restricted)
  10. Hall, Alastair R & Rudebusch, Glenn D & Wilcox, David W, 1996. "Judging Instrument Relevance in Instrumental Variables Estimation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 283-98, May.
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