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Testing the External Effect of Household Behavior: The Case of the Demand for Children

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  • Hongbin Li
  • Junsen Zhang

Abstract

This paper tests the external effect of household childbearing behavior by drawing on microfertility data from China. The test is executed by regressing one woman’s fertility on the average fertility of neighboring women. China’s unique affirmative birth control policy provides us with quasi-experimental fertility variation that facilities identification. We present two identification methods: (1) Testing the external effect from the dominant Han Chinese on minority women by using the fertility fine as an instrumental variable; and (2) identifying the external effect using an instrumental variable that is based on the difference-in-differences. We find that fertility has a large external effect.

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File URL: http://jhr.uwpress.org/cgi/reprint/44/4/890
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 44 (2009)
Issue (Month): 4 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:44:y:2009:i4:p890-915

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Xiaoyu Wu & Lixing Li, 2012. "Family size and maternal health: evidence from the One-Child policy in China," Journal of Population Economics, Springer, vol. 25(4), pages 1341-1364, October.
  2. Fang, Hai & Eggleston, Karen N. & Rizzo, John A. & Zeckhauser, Richard Jay, 2013. "Jobs and Kids: Female Employment and Fertility in China," Scholarly Articles 9924085, Harvard Kennedy School of Government.
  3. Fang, Hai & Eggleston, Karen N. & Rizzo, John A. & Zeckhauser, Richard, 2010. "Female Employment and Fertility in Rural China," Working Paper Series rwp10-011, Harvard University, John F. Kennedy School of Government.
  4. Hongbin Li & Junjian Yi & Junsen Zhang, 2011. "Estimating the Effect of the One-Child Policy on the Sex Ratio Imbalance in China: Identification Based on the Difference-in-Differences," Demography, Springer, vol. 48(4), pages 1535-1557, November.

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