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The Quantity and Quality of Children: A Semi-Parametric Bayesian IV Approach

Author

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  • Frühwirth-Schnatter, Sylvia

    () (Vienna University of Economics and Business)

  • Halla, Martin

    () (University of Linz)

  • Posekany, Alexandra

    () (Vienna University of Economics and Business)

  • Pruckner, Gerald J.

    () (University of Linz)

  • Schober, Thomas

    () (University of Linz)

Abstract

Prior empirical research on the theoretically proposed interaction between the quantity and the quality of children builds on exogenous variation in family size due to twin births and focuses on human capital outcomes. The typical finding can be described as a statistically nonsignificant two-stage least squares (2SLS) estimate, with substantial standard errors. We regard these conclusions of no empirical support for the quantity-quality trade-off as premature and, therefore, extend the empirical approach in two ways. First, we add health as an additional outcome dimension. Second, we apply a semi-parametric Bayesian IV approach for econometric inference. Our estimation results substantiate the finding of a zero effect: we provide estimates with an increased precision by a factor of approximately twenty-three, for a broader set of outcomes.

Suggested Citation

  • Frühwirth-Schnatter, Sylvia & Halla, Martin & Posekany, Alexandra & Pruckner, Gerald J. & Schober, Thomas, 2014. "The Quantity and Quality of Children: A Semi-Parametric Bayesian IV Approach," IZA Discussion Papers 8024, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8024
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    References listed on IDEAS

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    Cited by:

    1. Fernihough, Alan, 2017. "Less is More? The child quantity-quality trade-off in early 20th century England and Wales," QUCEH Working Paper Series 2017-07, Queen's University Belfast, Queen's University Centre for Economic History.

    More about this item

    Keywords

    quantity-quality model of fertility; family size; human capital; health; semi-parametric Bayesian IV approach;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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