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The Twin Instrument: Fertility and Human Capital Investment

Author

Listed:
  • Sonia Bhalotra
  • Damian Clarke

Abstract

Twin births are often used as an instrument to address selection of women into fertility. However, recent work shows selection of women into twin birth such that, while OLS estimates tend to be downward biased, twin-IV estimates will tend to be upward biased. This is pertinent given the emerging consensus that fertility has limited impacts on women’s labour supply, or on investments in children. Using data for developing countries and the United States to estimate the trade-off between fertility and children’s human capital, we demonstrate the nature and size of the bias in the twin-IV estimator and estimate bounds on the true parameter.

Suggested Citation

  • Sonia Bhalotra & Damian Clarke, 2020. "The Twin Instrument: Fertility and Human Capital Investment," Journal of the European Economic Association, European Economic Association, vol. 18(6), pages 3090-3139.
  • Handle: RePEc:oup:jeurec:v:18:y:2020:i:6:p:3090-3139.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvz058
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    Cited by:

    1. French, Eric Baird & O’Dea, Cormac & MacCuish, Jamie, 2021. "The Intergenerational Elasticity of Earnings: Exploring the Mechanisms," CEPR Discussion Papers 15975, C.E.P.R. Discussion Papers.
    2. Fenske, James & Wang, Shizhuo, 2023. "Tradition and mortality: Evidence from twin infanticide in Africa," Journal of Development Economics, Elsevier, vol. 163(C).
    3. Sefa Awaworyi Churchill & Nasir Iqbal & Saima Nawaz & Siew Ling Yew, 2024. "Do unconditional cash transfers increase fertility? Lessons from a large‐scale program," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 74-96, January.
    4. Bhalotra, Sonia & Clarke, Damian & Walther, Selma, 2022. "Women's Careers and Family Formation," GLO Discussion Paper Series 1120, Global Labor Organization (GLO).
    5. Öberg, Stefan, 2018. "Instrumental variables based on twin births are by definition not valid (v.3.0)," SocArXiv zux9s, Center for Open Science.
    6. Mookerjee, Mehreen & Ojha, Manini & Roy, Sanket, 2023. "Family planning practices: Examining the link between contraception and child health," Economic Modelling, Elsevier, vol. 129(C).
    7. Sarrias, Mauricio & Blanco, Alejandra, 2022. "Bodyweight and human capital development: Assessing the impact of obesity on socioemotional skills during childhood in Chile," Economics & Human Biology, Elsevier, vol. 47(C).
    8. Christine Ho & Kathleen McGarry, 2025. "Brothers, sisters, and support to older parents: separate spheres across and within support types?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 38(1), pages 1-38, March.
    9. Jeanne Lafortune & Corinne Low, 2023. "Collateralized Marriage," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 252-291, October.
    10. Wei Fan & Catherine Porter, 2020. "Reinforcement or compensation? Parental responses to children’s revealed human capital levels," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 233-270, January.
    11. Houmark, Mikkel Aagaard, 2023. "First Among Equals? How Birth Order Shapes Child Development," MPRA Paper 119325, University Library of Munich, Germany.
    12. Beatrice Baaba Tawiah, 2023. "The Effect of Children on Health," Working Papers Dissertations 103, Paderborn University, Faculty of Business Administration and Economics.
    13. Ponzo Michela & Scoppa Vincenzo, 2024. "Human Capital Investments and Family Size in Italy: IV Estimates Using Twin Births as an Instrument," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(2), pages 425-461, April.
    14. Delprato, Marcos, 2022. "Educational gender gap in sub-Saharan Africa: Does the estimation method matter? A comparison using a sample of opposite sex twins," International Journal of Educational Development, Elsevier, vol. 95(C).
    15. Bonsang, Eric & Pronkina, Elizaveta, 2023. "Family size and vaccination among older individuals: The case of COVID-19 vaccine," Economics & Human Biology, Elsevier, vol. 50(C).
    16. Santosh Kumar & Kaushalendra Kumar & Ramanan Laxminarayan & Arindam Nandi, 2022. "Birth Weight and Cognitive Development during Childhood: Evidence from India," Economic Papers, The Economic Society of Australia, vol. 41(2), pages 155-175, June.
    17. Kaat Van Hoyweghen & Janne Bemelmans & Hendrik Feyaerts & Goedele Van den Broeck & Miet Maertens, 2023. "Small Family, Happy Family? Fertility Preferences and the Quantity–Quality Trade-Off in Sub-Saharan Africa," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(6), pages 1-35, December.
    18. Cepaluni, Gabriel & Chewning, Taylor Kinsley & Driscoll, Amanda & Faganello, Marco Antonio, 2022. "Conditional cash transfers and child labor," World Development, Elsevier, vol. 152(C).
    19. Ramon Ramon-Muñoz & Josep-Maria Ramon-Muñoz & Begoña Candela-Martínez, 2021. "Sibship Size, Height and Cohort Selection: A Methodological Approach," IJERPH, MDPI, vol. 18(24), pages 1-29, December.
    20. Öberg, Stefan, 2021. "The casual effect of fertility: The multiple problems with instrumental variables for the number of children in families," SocArXiv peuvz, Center for Open Science.

    More about this item

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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