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Instrument selection: The case of teenage childbearing and women's educational attainment Author info | Abstract | Publisher info | Download info | Related research | Statistics D. Klepinger
S. Lundberg
R. Plotnick
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Recent research has identified situations in which instrumental variables (IV) estimators are severely biased and has suggested diagnostic tests to identify such situations. We suggest a number of alternative techniques for choosing a set of instruments that satisfy these tests from a universe of a priori plausible candidates, and we apply them to a study of the effects of adolescent childbearing on the educational attainment of young women. We find that substantive results are sensitive to instrument choice, and make two recommendations to the practical researcher: First, it is prudent to begin with a large set of potential instruments, when possible, and pare it down through formal testing rather than to rely on a minimal instrument set justified on a priori grounds. Second, the application of more restrictive tests of instrument validity and relevance can yield results very different from those based on less restrictive tests that produce a more inclusive set of instruments, and is the preferred, conservative approach when improper instrument choice can lead to biased estimates.
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Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number
1077-95.
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Handle: RePEc:wop:wispod:1077-95Contact details of provider: Postal: 3412 Social Science Building, 1180 Observatory Drive, Madison, WI 53706 Phone: (608) 262-6358 Fax: (608) 265-3119 Email: Web page: http://www.ssc.wisc.edu/irp/dp/dplist.htm More information through EDIRC
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Nelson, C. & Startz, R., 1988.
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repec:att:wimass:199312 is not listed on IDEAS
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Klepinger, D. & Lundberg, S. & Plotnick, R., 1994.
"Adolescent Fertility and the Education Attainment of Young Women ,"
Discussion Papers in Economics at the University of Washington
94-5, Department of Economics at the University of Washington.
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references Cited by : (explanations , 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.)
D. Klepinger & S. Lundberg & R. Plotnick, .
"How Does Adolescent Fertility Affect the Human Capital and Wages of Young Women? ,"
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1145-97, University of Wisconsin Institute for Research on Poverty.
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Charles R. Nelson & Richard Startz & Eric Zivot, 1996.
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Econometrics
9612002, EconWPA.
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Nelson, C.R. & Startz, R. & Zivot, E., 1996.
"Valid Confidence Intervals and Inference in the Presence of Weak Instruments ,"
Working Papers
96-15, University of Washington, Department of Economics.
Zivot, E & Startz, R & Nelson, C-R, 1997.
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97-17, University of Washington, Department of Economics.
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"Valid Confidence Intervals and Inference in the Presence of Weak Instruments ,"
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97-17, Department of Economics at the University of Washington.
Nelson, C.R. & Startz, R. & Zivot, E., 1996.
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Discussion Papers in Economics at the University of Washington
96-15, Department of Economics at the University of Washington.
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