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Abstract

In this paper we assess the importance of heterogeneity and selective fertility in altering estimates and interpretations of the determinants of the human capital of children. We set out a sequential model of human capital investments in children incorporating endogenous fertility and heterogeneity in human capital endowments to illustrate the fertility selection problem and issues of identification. Empirical results based on parametric and semi-parametric estimates of selectivity models applied to data on birthweight and schooling in Malaysia indicate that the hypothesis of no fertility selection is strongly rejected, with mothers having higher birthweight children tending to have substantially lower birth probabilities (negative birth selectivity). As a consequence, the positive association between mother's schooling and birthweight is substantially underestimated and the positive effects of delaying childbearing overestimated when birth selectivity is not taken into account. The schooling results indicate strong rejection of the "efficient schooling" model, in which schooling is allocated efficiently across children, but only when the selectivity of fertility is taken into account.

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File URL: http://purl.umn.edu/7511
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Paper provided by University of Minnesota, Economic Development Center in its series Bulletins with number 7511.

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Date of creation: 1989
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Handle: RePEc:ags:umedbu:7511

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Keywords: Labor and Human Capital;

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1. Michael Grossman & Theodore J. Joyce, 1991. "Unobservables, Pregnancy Resolutions, and Birthweight Production Functions in New York City," NBER Working Papers 2746, National Bureau of Economic Research, Inc.
   
   • Grossman, Michael & Joyce, Theodore J, 1990. "Unobservables, Pregnancy Resolutions, and Birth Weight Production Functions in New York City," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 983-1007, October.

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Cited by:

1. Harold Alderman & John Hoddinott & Bill Kinsey, 2004. "Long Term Consequences Of Early Childhood Malnutrition," HiCN Working Papers 09, Households in Conflict Network.
   
   • Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
   • Alderman,Harold & Hoddinott, John & Kinsey, Bill, 2003. "Long-term consequences of early childhood malnutrition," FCND briefs 168, International Food Policy Research Institute (IFPRI).
   • Alderman,Harold & Hoddinott, John & Kinsey, Bill, 2003. "Long-term consequences of early childhood malnutrition," FCND discussion papers 168, International Food Policy Research Institute (IFPRI).
2. Andrew D. Foster, 1994. "Program Effects and the Allocation of Resources within the Household," Home Pages _081, University of Pennsylvania.
3. Maitra, Pushkar & Pal, Sarmistha, 2008. "Birth spacing, fertility selection and child survival: Analysis using a correlated hazard model," Journal of Health Economics, Elsevier, vol. 27(3), pages 690-705, May.
   
   • Maitra, Pushkar & Pal, Sarmistha, 2007. "Birth Spacing, Fertility Selection and Child Survival: Analysis Using a Correlated Hazard Model," IZA Discussion Papers 2878, Institute for the Study of Labor (IZA).
   • Pushkar Maitra & Sarmistha Pal, 2007. "Birth Spacing, Fertility Selection and Child Survival: Analysis using a Correlated Hazard Model," CEDI Discussion Paper Series 07-09, Centre for Economic Development and Institutions(CEDI), Brunel University.
4. John Maluccio & John Hoddinott & Jere R. Behrman & Reynaldo Martorell & Agnes R. Quisumbing & Aryeh D. Stein, 2006. "The Impact of Nutrition during Early Childhood on Education among Guatemalan Adults," Middlebury College Working Paper Series 0614, Middlebury College, Department of Economics.
   
   • John A. Maluccio, & John Hoddinott & Jere R. Behrman & Reynaldo Martorell & Agnes R. Quisumbing & Aryeh D. Stein, 2003. "The Impact of Nutrition during Early Childhood on Education among Guatemalan Adults," PIER Working Paper Archive 06-026, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Aug 2006.

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