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Fecundidad e Ingresos en Uruguay

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  • Jose Maria Cabrera

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    Abstract

    In this paper I seek to identify and estimate the causal effect of fertility on family income. I analyze the endogeneity of the decision to have a second child with a sample of twins at first birth (as in Rosenzweig and Wolpin, 1980). And the decision to have a third son is addressed with an instrumental variables technique: the sex composition of the first two children is a random event and if both children are of the same sex, it exogenously increases the likelihood of parents having a third son (as in Angrist and Evans, 1998). The results suggest that the second child would increase total household income, while income per capita remains constant. For the third child, the effect appears to be negative, although the estimation is not precise.

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    File URL: http://www.um.edu.uy/docs/working_paper_um_cee_2011_10.pdf
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    Bibliographic Info

    Paper provided by Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo. in its series Documentos de Trabajo/Working Papers with number 1110.

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    Date of creation: 2011
    Date of revision:
    Handle: RePEc:mnt:wpaper:1110

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    Postal: Prudencio de Pena 2440, Montevideo 11600
    Web page: http://www.um.edu.uy/cee/
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    Related research

    Keywords: Fertility; income; instrumental variables; twins at first birth; sibling sex composition;

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    1. Mark R. Rosenzweig & Junsen Zhang, 2006. "Do Population Control Policies Induce More Human Capital Investment? Twins, Birthweight, and China's 'One Child' Policy," Working Papers 933, Economic Growth Center, Yale University.
    2. Shelly Lundberg & Elaina Rose, 2002. "The Effects Of Sons And Daughters On Men'S Labor Supply And Wages," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 251-268, May.
    3. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S143-62, August.
    4. Hyunbae Chun & Jeungil Oh, 2002. "An instrumental variable estimate of the effect of fertility on the labour force participation of married women," Applied Economics Letters, Taylor & Francis Journals, vol. 9(10), pages 631-634.
    5. Angrist, Joshua, 2003. "Treatment Effect Heterogeneity in Theory and Practice," IZA Discussion Papers 851, Institute for the Study of Labor (IZA).
    6. Alan Krueger & Orley Ashenfelter, 1992. "Estimates of the Economic Return to Schooling from a New Sample of Twins," NBER Working Papers 4143, National Bureau of Economic Research, Inc.
    7. Bronars, Stephen G & Grogger, Jeff, 1994. "The Economic Consequences of Unwed Motherhood: Using Twin Births as a Natural Experiment," American Economic Review, American Economic Association, vol. 84(5), pages 1141-56, December.
    8. Larry E. Jones & Alice Schoonbroodt & Michèle Tertilt, 2010. "Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?," NBER Chapters, in: Demography and the Economy, pages 43-100 National Bureau of Economic Research, Inc.
    9. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2007. "Small Family, Smart Family? Family Size and the IQ Scores of Young Men," NBER Working Papers 13336, National Bureau of Economic Research, Inc.
    10. Åslund, Olof & Grönqvist, Hans, 2007. "Family size and child outcomes: Is there really no trade-off?," Working Paper Series 2007:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    11. Joshua D. Angrist & William N. Evans, 1996. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," NBER Working Papers 5778, National Bureau of Economic Research, Inc.
    12. Cruces, Guillermo & Galiani, Sebastian, 2007. "Fertility and female labor supply in Latin America: New causal evidence," Labour Economics, Elsevier, vol. 14(3), pages 565-573, June.
    13. Jesus Fernandez-Villaverde & Dirk Krueger, 2002. "Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data," NBER Working Papers 9382, National Bureau of Economic Research, Inc.
    14. Nancy Qian, 2010. "Quantity-Quality and the One Child Policy: The Only-Child Disadvantage in School Enrollment in Rural China," Working Papers id:2558, eSocialSciences.
    15. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Life-Cycle Labor Supply and Fertility: Causal Inferences from Household Models," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 328-48, April.
    16. 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).
    17. Qingyan Shang & Bruce A. Weinberg, 2009. "Opting For Families: Recent Trends in the Fertility of Highly Educated Women," NBER Working Papers 15074, National Bureau of Economic Research, Inc.
    18. S Black & Paul Devereux & Kjell Salvanes, 2005. "The More the Merrier? The Effect of Family Size and Birth Order on Childrens Education," CEE Discussion Papers 0050, Centre for the Economics of Education, LSE.
    19. Joshua Angrist & Victor Lavy & Analia Schlosser, 2010. "Multiple Experiments for the Causal Link between the Quantity and Quality of Children," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 773-824, October.
    20. Jaisri Gangadharan & Joshua Rosenbloom & Joyce Jacobson & James Wishart Pearre III, 1996. "The Effects of Child-Bearing on Married Women's Labor Supply and Earnings: Using Twin Births as a Natural Experiment," NBER Working Papers 5647, National Bureau of Economic Research, Inc.
    21. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, vol. 7(6), pages 689-710, November.
    22. 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, .
    23. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    24. Jungmin Lee, 2008. "Sibling size and investment in children’s education: an asian instrument," Journal of Population Economics, Springer, vol. 21(4), pages 855-875, October.
    25. Alma Cohen & Rajeev Dehejia & Dmitri Romanov, 2007. "Do Financial Incentives Affect Fertility?," NBER Working Papers 13700, National Bureau of Economic Research, Inc.
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