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The Twin Instrument: Fertility and Human Capital Investment

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  • Bhalotra, Sonia R.

    (University of Warwick)

  • Clarke, Damian

    (University of Chile)

Abstract

Twin births are often used to instrument fertility to address (negative) selection of women into fertility. However recent work shows positive selection of women into twin birth. Thus, while OLS estimates will 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, we demonstrate the nature and size of the bias in the twin-IV estimator of the quantity-quality trade-off and estimate bounds on the true parameter.

Suggested Citation

  • Bhalotra, Sonia R. & Clarke, Damian, 2018. "The Twin Instrument: Fertility and Human Capital Investment," IZA Discussion Papers 11878, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11878
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    References listed on IDEAS

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    2. Fenske, James & Wang, Shizhou, 2020. "Tradition and mortality: Evidence from twin infanticide in Africa," The Warwick Economics Research Paper Series (TWERPS) 1317, University of Warwick, Department of Economics.

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    More about this item

    Keywords

    IV; quantity-quality trade-off; maternal health; bounds; twins; fertility; parental investment;
    All these keywords.

    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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