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Estimating the Effect of Fertility Decisions on Child Labor and Schooling

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Abstract

We use an econometric model of fertility and children's activities to examine the causal effects of fertility on a child's activities taking the endogeneity of fertility into account. Our specification uses latent factors to allow for unobserved influences on fertility to affect a child's activities. We apply maximum simulated likelihood (MSL) techniques to estimate the parameters of our models. We find that the effect of fertility has a large downward bias in naive models. The effect of fertility on the probability of attending school is twice as large once its endogeneity is taken into account. The effect of fertility on the probability of work changes sign and becomes statistically significant.

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Bibliographic Info

Paper provided by Hunter College: Department of Economics in its series Hunter College Department of Economics Working Papers with number 211.

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Length: 26 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:htr:hcecon:211

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  1. van Soest, Arthur & Gong, Xiaodong, 2000. "Family Structure and Female Labour Supply in Mexico City," IZA Discussion Papers 214, Institute for the Study of Labor (IZA).
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  7. Carrasco, R., 1998. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labour Participation," Papers 9805, Centro de Estudios Monetarios Y Financieros-.
  8. Shelly Lundberg & Elaina Rose, 1999. "The Effect of Sons and Daughters on Men's Labor Supply and Wages," Working Papers 0033, University of Washington, Department of Economics.
  9. Ray, R., 1998. "Analysis of Child Labour in Peru and Pakistan: a Comparative Study," Papers 1998-05, Tasmania - Department of Economics.
  10. repec:ese:iserwp:98-02 is not listed on IDEAS
  11. Pushkar Maitra & Ranjan Ray, 2000. "The Joint Estimation of Child Participation in Schooling and Employment: Comparative Evidence from Three Continents," ASARC Working Papers 2000-04, The Australian National University, Australia South Asia Research Centre.
  12. Edward Vytlacil & James J. Heckman, 2001. "Policy-Relevant Treatment Effects," American Economic Review, American Economic Association, vol. 91(2), pages 107-111, May.
  13. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages C158-75, March.
  14. Hotz, V Joseph & Miller, Robert A, 1988. "An Empirical Analysis of Life Cycle Fertility and Female Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 91-118, January.
  15. Bhat, Chandra R., 2001. "Quasi-random maximum simulated likelihood estimation of the mixed multinomial logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 677-693, August.
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Cited by:
  1. Rana Ejaz Ali Khan & Karamat Ali, 2005. "Economically Active Children and Home-care Children: How Much They Differ," Labor and Demography 0510013, EconWPA.
  2. Souza, André Portela & Ponczek, Vladimir P., 2012. "New evidence of the causal effect of family size on child quality in a developing country," Textos para discussão 283, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
  3. Serra, Renata, 2009. "Child fostering in Africa: When labor and schooling motives may coexist," Journal of Development Economics, Elsevier, vol. 88(1), pages 157-170, January.
  4. Ponczek, Vladimir Pinheiro & Souza, André Portela Fernandes de, 2007. "The causal effect of family size on child labor and education," Textos para discussão 162, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).

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