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Estimating the effect of fertility decisions on child labour and schooling

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Author Info
P. Deb
F. Rosati

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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 is nonlinear and simultaneous and 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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File URL: http://www.ucw-project.org/pdf/publications/standard_fertility_child_labor.pdf
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Paper provided by Understanding Children's Work (UCW Project) in its series UCW Working Paper with number 30.

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Date of creation: Feb 2004
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Handle: RePEc:ucw:worpap:30

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  1. Carrasco, Raquel, 2001. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labor Participation," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 385-94, October.
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  2. Peter Jensen & Helena Skyt Nielsen, 1997. "Child labour or school attendance? Evidence from Zambia," Journal of Population Economics, Springer, vol. 10(4), pages 407-424. [Downloadable!] (restricted)
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  3. 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. [Downloadable!] (restricted)
  4. James J. Heckman & Edward Vytlacil, 2001. "Policy-Relevant Treatment Effects," American Economic Review, American Economic Association, vol. 91(2), pages 107-111, May. [Downloadable!] (restricted)
  5. Gong, Xiaodong & van Soest, Arthur, 2000. "Family Structure and Female Labour Supply in Mexico City," IZA Discussion Papers 214, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Ranjan Ray, 2000. "Analysis of child labour in Peru and Pakistan: A comparative study," Journal of Population Economics, Springer, vol. 13(1), pages 3-19. [Downloadable!] (restricted)
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  7. Marco Francesconi, 2002. "A Joint Dynamic Model of Fertility and Work of Married Women," Journal of Labor Economics, University of Chicago Press, vol. 20(2), pages 336-380, Part. [Downloadable!]
  8. Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November. [Downloadable!] (restricted)
  9. Pushkar Maitra & Ranjan Ray, 2002. "The Joint Estimation of Child Participation in Schooling and Employment: Comparative Evidence from Three Continents," Oxford Development Studies, Taylor and Francis Journals, vol. 30(1), pages 41-62. [Downloadable!] (restricted)
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  10. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
  11. 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. [Downloadable!] (restricted)
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  12. 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. [Downloadable!] (restricted)
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  13. Moffitt, Robert, 1984. "Profiles of Fertility, Labour Supply and Wages of Married Women: A Complete Life-Cycle Model," Review of Economic Studies, Blackwell Publishing, vol. 51(2), pages 263-78, April. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
  15. Blundell, Richard & Smith, Richard J., 1994. "Coherency and estimation in simultaneous models with censored or qualitative dependent variables," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 355-373. [Downloadable!] (restricted)
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