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Poverty and Fertility - An Instrumental Variables Analysis on Indian Micro Data

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Author Info
Gupta, Nabanita Datta () (Department of Economics, Aarhus School of Business)
Dubey, Amaresh (Department of Economics, Aarhus School of Business)

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Abstract

The 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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Publisher Info
Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 03-11.

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Length: 50 pages
Date of creation: 01 Nov 2003
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Handle: RePEc:hhs:aareco:2003_011

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Related research
Keywords: 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

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  3. 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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  4. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, . [Downloadable!] (restricted)
  5. Anand, Sudhir, 1977. "Aspects of Poverty in Malaysia," Review of Income and Wealth, Blackwell Publishing, vol. 23(1), pages 1-16, March.
  6. Ben-Porath, Yoram, 1976. "Fertility Response to Child Mortality: Micro Data from Israel," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S163-78, August. [Downloadable!] (restricted)
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  8. Jere R. Behrman & Andrew D. Foster & Mark R. Rosenzweig & Prem Vashishtha, 1999. "Women's Schooling, Home Teaching, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 682-714, August. [Downloadable!] (restricted)
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