Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A researcher would like to estimate the causal effect of education on fertility (the number of children) in the following model: children; = B1 +

image text in transcribed
A researcher would like to estimate the causal effect of education on fertility (the number of children) in the following model: children; = B1 + B2educ; + B3age; + Uj for a sample of 18-40 year old women in Botswana, where children; : the number of children woman i has, educ; : the woman's education level, in years age; : the woman's age, in years. Explain why educ; is likely to be endogenous: O a. Because educ; may be directly affected by the number of children a woman has. O b. Because age impacts both education and the number of children. O c. Both a) and b) are true. To address the endogeneity problem, the researcher wants to use the variable firsthalf;, which is a dummy variable equal to 1 if the woman was born during the first six months of the year and 0 otherwise, as an instrument for educ;. May firsthalf; be a good instrument? O a. It is a good instrument if being born in the first or the second half of the year impacts the minimal years of education required, but is not directly correlated with variables that can impact the number of children (other than through education per se). O b. It is not a good instrument if there is evidence that families with working mothers (generally of higher socioeconomic status) have children more often in the first half of the year. O c. Both a) and b) are true

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trigonometry

Authors: Ron Larson

9th Edition

128560718X, 9781285607184

More Books

Students also viewed these Mathematics questions

Question

2. The purpose of the acquisition of the information.

Answered: 1 week ago

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago