When is the local average treatment close to the average? Evidence from fertility and labor supply

Avraham Ebenstein*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

22 Scopus citations

Abstract

The local average treatment effect (LATE) may differ from the average treatment effect (ATE) when those influenced by the instrument are not representative of the overall population. Heterogeneity in treatment effects may imply that parameter estimates from 2SLS are uninformative regarding the average treatment effect, motivating a search for instruments that affect a larger share of the population. In this paper, I present and estimate a model of home production with heterogeneous costs and benefits to fertility. The results indicate that a sex-preference instrument in Taiwan produces IV estimates closer to the estimated ATE than in the United States, where sex preference is weaker.

Original languageAmerican English
Pages (from-to)955-975
Number of pages21
JournalJournal of Human Resources
Volume44
Issue number4
DOIs
StatePublished - 2009
Externally publishedYes

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