RT Journal Article
T1 Binary choice with binary endogenous regressors in panel data : estimating the effect of fertility on female labour force participation
A1 Carrasco, Raquel
AB This article considers the estimation of the causal effect of fertility on female-labor-force participation equations. My main concern is to examine two considerations, the endogeneity of fertility and theimpact of controllingf or unobservedh eterogeneitya nd for predeterminede xisting children.U sing PSID data, a switching binary panel-data model that accounts for selectivity bias as well as for other formsof time-invariantu nobservedh eterogeneityi s estimated. Individuale ffects are allowed to be correlated with the explanatory variables, which can be predetermined as opposed to strictly exogenous. Familysex composition is used as an instrument for exogenous fertility movements. The results indicate thatexogeneity assumptions of children variables induce a downward bias in absolute value in the estimatednegative effect of fertility on participation, although the failure to account for unobserved heterogeneityoverstates this effect. Moreover, stronger effects of fertility are found when existing children are treated as predeterminedb ut not strictly exogenous variables.
PB American Statistical Association
SN 1537-2707
YR 2001
FD 2001
LK https://hdl.handle.net/10016/4682
UL https://hdl.handle.net/10016/4682
LA eng
DS e-Archivo
RD 27 jul. 2024