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When is the Local Average Treatment Close to the Average?: Evidence from Fertility and Labor Supply

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  • Avraham Ebenstein

Abstract

The local average treatment effect (LATE) may differ from the average treatment effect (ATE) when those influenced by the instrument are not representative of the overall population. Heterogeneity in treatment effects may imply that parameter estimates from 2SLS are uninformative regarding the average treatment effect, motivating a search for instruments that affect a larger share of the population. In this paper, I present and estimate a model of home production with heterogeneous costs and benefits to fertility. The results indicate that a sex-preference instrument in Taiwan produces IV estimates closer to the estimated ATE than in the United States, where sex preference is weaker.

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  • Avraham Ebenstein, 2009. "When is the Local Average Treatment Close to the Average?: Evidence from Fertility and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
    • Handle: RePEc:uwp:jhriss:v:44:y:2009:i4:p955-975
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    Cited by:

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    3. Chen Cheng & Chou Shin-Yi & Wang Cheng & Zhao Wangyang, 2020. "The Effect of the Second Child on the Anthropometric Outcomes and Nutrition Intake of the First Child: Evidence from the Relaxation of the One-Child Policy in Rural China," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-28, January.
    4. Marcotte, Dave E., 2013. "High school dropout and teen childbearing," Economics of Education Review, Elsevier, vol. 34(C), pages 258-268.
    5. Guo, Rufei & Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2018. "Fertility, household structure, and parental labor supply: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 145-156.
    6. Iva Trako, 2018. "Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans," PSE Working Papers halshs-01828471, HAL.
    7. David SAHN & Catalina HERRERA, 2014. "The Impact of Early Childbearing on Schooling and Cognitive Skills among Young Women in Madagascar," Working Papers 201428, CERDI.
    8. Julie Moschion, 2013. "The Impact of Fertility on Mothers' Labour Supply in Australia: Evidence from Exogenous Variation in Family Size," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 319-338, September.
    9. Chen, Cheng & Zhao, Wangyang & Chou, Shin-Yi & Lien, Hsien-Ming, 2021. "The effect of family size on parents' labor supply and occupational prestige: Evidence from Taiwan and Mainland China," China Economic Review, Elsevier, vol. 66(C).
    10. Joshua Angrist & Ivan Fernandez-Val, 2010. "ExtrapoLATE-ing: External Validity and Overidentification in the LATE Framework," NBER Working Papers 16566, National Bureau of Economic Research, Inc.
    11. Mary A. Silles, 2019. "The Labor Market Consequences Of Teenage Childbearing," Contemporary Economic Policy, Western Economic Association International, vol. 37(4), pages 694-713, October.
    12. Jorge M. Agüero & Mindy S. Marks, 2011. "Motherhood and Female Labor Supply in the Developing World: Evidence from Infertility Shocks," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 800-826.
    13. Anh P. Ngo, 2020. "Effects of Vietnam’s two-child policy on fertility, son preference, and female labor supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(3), pages 751-794, July.
    14. Damian Clarke, 2018. "Children And Their Parents: A Review Of Fertility And Causality," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 518-540, April.
    15. Frank‐Borge Wietzke, 2020. "Poverty, Inequality, and Fertility: The Contribution of Demographic Change to Global Poverty Reduction," Population and Development Review, The Population Council, Inc., vol. 46(1), pages 65-99, March.
    16. Iva Trako, 2018. "Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans," Working Papers halshs-01828471, HAL.
    17. Zhang, Junchao, 2017. "A dilemma of fertility and female labor supply: Identification using Taiwanese twins," China Economic Review, Elsevier, vol. 43(C), pages 47-63.
    18. Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2015. "Fertility, Household Structure, and Parental Labor Supply: Evidence from Rural China," IZA Discussion Papers 9342, Institute of Labor Economics (IZA).
    19. Iva Trako, 2016. "Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans," Working Papers halshs-01361443, HAL.
    20. Daniel L. Millimet & Michael Nieswiadomy & Daniel Slottje, 2010. "Detailed Estimation Of Worklife Expectancy For The Measurement Of Human Capital: Accounting For Marriage And Children," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 339-361, April.
    21. YIN Ting & YIN Zhigang & ZHANG Junchao, 2018. "The Effect of Transportation Benefits on Health and Consumption among the Elderly: Quasi-Experimental Evidence from Urban China," Discussion papers 18037, Research Institute of Economy, Trade and Industry (RIETI).
    22. Nuevo-Chiquero, Ana, 2014. "The labor force effects of unplanned childbearing," Labour Economics, Elsevier, vol. 29(C), pages 91-101.
    23. Fang, Hai & Eggleston, Karen N. & Rizzo, John A. & Zeckhauser, Richard Jay, 2010. "Female Employment and Fertility in Rural China," Scholarly Articles 4449097, Harvard Kennedy School of Government.
    24. Priebe, Jan, 2011. "Child Costs and the Causal Effect of Fertility on Female Labor Supply: An investigation for Indonesia 1993-2008," Proceedings of the German Development Economics Conference, Berlin 2011 67, Verein für Socialpolitik, Research Committee Development Economics.
    25. Öberg, Stefan, 2021. "The casual effect of fertility: The multiple problems with instrumental variables for the number of children in families," SocArXiv peuvz, Center for Open Science.

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