Poverty and Fertility - An Instrumental Variables Analysis on Indian Micro Data
AbstractThe gender of the first two children is used as a natural experiment to estimate the causal effect of fertility on poverty of rural nucleus households in India. In India, male children are viewed as a better source of insurance and support to the family in old age. Thus, having two girls can proxy an exogenous increase in fertility. Using household micro data from the 1993-94 Indian Quinquennial Survey (5th wave), estimation results indicate that fertility significantly positively affects poverty, but that the effect is halved when endogeneity is allowed for. Also, declining fertility accounts for almost a third of the poverty reduction in rural India between 1987/88 and 1993/1994.
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Bibliographic InfoPaper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 03-11.
Length: 50 pages
Date of creation: 01 Nov 2003
Date of revision:
Contact details of provider:
Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
More information through EDIRC
Poverty; Fertility; Endogeneity; Natural experiment; Instrumental variables;
Find related papers by JEL classification:
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-01-18 (All new papers)
- NEP-DEV-2004-01-18 (Development)
- NEP-HEA-2004-01-18 (Health Economics)
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