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Estimating the Effect of Fertility Decisions on Child Labor and Schooling

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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 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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  • Partha Deb & Furio Rosati, 2003. "Estimating the Effect of Fertility Decisions on Child Labor and Schooling," Economics Working Paper Archive at Hunter College 211, Hunter College Department of Economics.
    • Handle: RePEc:htr:hcecon:211
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    1. Furio Camillo Rosati & Zafiris Tzannatos, 2006. "Child Labour In Vietnam," Pacific Economic Review, Wiley Blackwell, vol. 11(1), pages 1-31, February.
    2. Vladimir Ponczek & Andre Portela Souza, 2012. "New Evidence of the Causal Effect of Family Size on Child Quality in a Developing Country," Journal of Human Resources, University of Wisconsin Press, vol. 47(1), pages 64-106.
    3. Serra, Renata, 2009. "Child fostering in Africa: When labor and schooling motives may coexist," Journal of Development Economics, Elsevier, vol. 88(1), pages 157-170, January.
    4. Rana Ejaz Ali Khan & Karamat Ali, 2005. "Economically Active Children and Home-care Children: How Much They Differ," Labor and Demography 0510013, University Library of Munich, Germany.

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