This paper uses a longitudinal survey from the Philippines with detailed information on family time use to analyse the effects of economic factors on children's time allocation. This is done while taking account of censoring, unobservable family heterogeneity and simultaneous decisions with respect to time spent in different activities. It is shown that there is a statistically significant correlation between unobservable individual and household characteristics when it comes to hours spent working and in school, but that this correlation is substantially smaller than one. Including household heterogeneity lead to substantial changes in the estimated effects of many of the important explanatory variables.
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Paper provided by University of Washington, Department of Economics in its series Working Papers with number
UWEC-2009-15.
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