Article

Identifying interaction effects using random fertility shocks

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Abstract

BACKGROUND Fertility interaction effects in social networks increasingly attracts the interest of demographers. While these theories propose a causal mechanism, they are rarely put to test in a plausibly causal statistical design. OBJECTIVE We aim to differentiate network effects from selection by using an instrumental variable (IV) approach to achieve exogenous variation in fertility. We use interaction effects between siblings as an empirical example. METHODS We draw data from Norwegian administrative registers (N ~ 170,000 men and women). We use twin births and children's sex composition as random fertility shocks (IVs), generating exogenous variation in third births. RESULTS In our full study sample, we find no significant effects on ego's fertility of random shocks to the propensity to have three children. Subgroup analysis by sex and parity indicates positive effects for firstborn women when the sibling's birth is intended (as captured by the same-sex instrument). We find no evidence that similarity strengthens interaction effects. CONCLUSIONS The study contributes to the literature by testing long-standing hypotheses of fertility interaction effects in a plausibly causal design. With the exception of firstborn women, we find no evidence of interaction effects of a sibling's third birth.

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... The two IVs employed in this paper represent quite different fertility experiences. The twin instrument captures the effect of a third child among couples who would otherwise have preferred only two children, whereas the sex-composition instrument captures the effect of a third birth among parents who would have stopped at two children if-and only if-they were of different sexes (see also Hart & Cools, 2019). For many reasons, having another child because of a desire for children of both sexes could be less demanding than having twins. ...
... For the twin instrument (column 1-3), we find multiple statistically significant differences by instrument status, some of them of sizeable magnitude. This finding is in line with previous applications, which show this instrument to be only conditionally random (Hart & Cools, 2019). ...
... To test whether twin births are conditionally random in this sample, in Table 3 we estimated how the IVs predict several other background characteristics, first without conditioning on the background variables in Table 2 (columns 1 and 3), then conditioning on them (columns 2 and 4). Under conditional independence, significant associations should disappear when background characteristics are controlled for in Table 2 (see also Hart & Cools, 2019). For the sex-composition instrument, there are no significant associations. ...
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... This is a major limitation of this particular approach, although we argue that the prevailing statistical practices of focusing on the signs and significance of coefficients of a small set of variables based on a simple theoretic model chosen because of either cognitive or feasibility constraints cannot establish causality either. Sophisticated research designs using instrumental variables or quasi-experimental designs have been able to assess causal effects of social interactions on outcomes related to fertility [12,86,87]. Establishing causality in network studies is particularly difficult [88][89][90], because in addition to common background variables, people select individuals into their network [91], and are influenced by them. ...
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... In another study, Hart and Cools (2019) attempted to identify sibling effects on fertility using twinning at second birth and having two children of the same sex as instruments. They argued that these two events are random shocks that can distinguish direct sibling effects from contextual and selection effects. ...
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Although estimates of the fertility-labor supply relationship abound, a full appreciation of the interpretation of such estimates has been lacking, regardless of the empirical strategy employed. This paper attempts to elucidate, within the context of a life-cycle decision-making process, the information contained in the estimated association between fertility and labor supply as calculated from "single" and "simultaneous-equations" estimation techniques. We also present a statistical methodology based upon the occurrence of twins in the first pregnancy and provide estimates, using that methodology, of the extent to which women's life-cycle labor supply decisions respond to exogenous (and, in this case, unanticipated) extra children.
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There is subnormal dispersion in the distributions of the combinations of the sexes in some samples of litters of pigs, rabbits and mice. For instance, consider litters of exactly size 8. As contrasted with binomial expectation, there are too many with exactly 4 males and 4 females, and too few unisexual litters. It is argued that this supports the hypothesis (independently proposed by the author and by Guerrero) that P, the probability that a zygote will be male, varies with the time at which it is formed within the cycle. It is noted that data of Kaufman seem to support the hypothesis.
Article
An analysis of the educational attainment of more than 10,000 members of the 1966 cohort of births in Northern Finland found that 25% of the young men born following an unwanted pregnancy failed to attain any more education than the nine years of compulsory schooling, compared with 18% of those born as a result of a mistimed pregnancy and 14% from a wanted one. The comparable proportions for women in the cohort were 19%, 13% and 9%, respectively. A binary regression analysis that controlled for family background variables indicates that unwantedness increased the risk that men would not go on to upper secondary school by 6.0 percentage points and that women would not by 6.3 percentage points. The statistical interaction between large family size and unwantedness showed an increased risk of low educational attainment among the young men; neither large family size nor other family background variables could explain the association between unwantedness at birth and comparatively little schooling among the women.
Article
A long-held belief among mental health practitioners is that being born unwanted carries a risk of negative psychosocial development and poor mental health in adulthood. The Prague Study was designed to test this hypothesis. It followed the development and mental well-being of 220 children (now adults) born in 1961-63 in Prague to women twice denied abortion for the same unwanted pregnancy. The children were individually pair-matched at about age nine with 220 children born from accepted pregnancies when no abortion had been requested. This article brings together in one place the theoretical assumptions and hypotheses, the criteria for selecting the study participants and major findings from five follow-up waves conducted among the children around the ages of 9, 14-16, 21-23, 28-31 and 32-35 years, plus a sub-study of married unwanted pregnancy subjects and accepted pregnancy controls at ages 26-28. To control for potential confounding factors in data interpretation, all siblings of all subjects were included in the last two waves. It was found that differences in psychosocial development widened over time but lessened at around age 30. All the differences consistently disfavoured the unwanted pregnancy subjects, especially only children (no siblings). They became psychiatric patients (especially in-patients) more frequently than the accepted pregnancy controls and also more often than their siblings. The overall findings suggest that, in the aggregate, denial of abortion for unwanted pregnancy entails an increased risk for negative psychosocial development and mental well-being in adulthood.
Article
The predictive content of the quantity-quality model of fertility and the empirical information required for verification under a minimal set of restrictions on the utility function is described. It is demonstrated that commodity-independent compensated price effects must be known to infer the existence of the unobservable interdependent shadow prices of the model with a relatively weak structure improsed on preference orderings. A method of using multiple birth events to substitute for these exogenous prices is proposed and applied to household data from India.
Spatial variations in family size and the neighbor's role for transition to third birth
  • J Bergsvik
  • T Lappegård
  • T Skardhamar
Bergsvik, J., Lappegård, T., and Skardhamar, T. (2016). Spatial variations in family size and the neighbor's role for transition to third birth. Paper presented at the Annual Meeting of the Population Association America, Washington, D.C., USA, March 31-April 2, 2016.
The effect of sibship size on fertility in adulthood: New evidence from IV estimation
  • S Cools
  • R Hart
Cools, S. and Hart, R. (2017). The effect of sibship size on fertility in adulthood: New evidence from IV estimation. Demography 53(1): 23-44. doi:10.1007/s13524-0160537-z.
Children and careers: How family size affects parents' labor market outcomes in the long run
  • S Cools
  • S Markussen
  • M Strøm
Cools, S., Markussen, S., and Strøm, M. (2017). Children and careers: How family size affects parents' labor market outcomes in the long run. Demography 54(5): 17731793. doi:10.1007/s13524-017-0612-0.
Parenthood wage penalties in a double income society
  • S Cools
  • M Strøm
Cools, S. and Strøm, M. (2017). Parenthood wage penalties in a double income society. Review of Economics of the Household 14(2): 391-416. doi:10.1007/s11150-0149244-y.
Mellom arbeidsliv og familieliv: Hvilken betydning har arbeidsmarkedssituasjonen for om menn og kvinner velger a˚ fa˚ barn? [Between family life and work life: how does the labor market matter for childbearing decisions?
  • Cools
Cools, S. and Strøm, M. (2018). Mellom arbeidsliv og familieliv: Hvilken betydning har arbeidsmarkedssituasjonen for om menn og kvinner velgerå få barn? [Between family life and work life: how does the labor market matter for childbearing decisions?]. Oslo: Institute for Social Research (Rapport 2018:13).
Geographical variations in fertility and transition to second and third birth in Britain
  • F Fiori
  • E Graham
  • Z Feng
Fiori, F., Graham, E., and Feng, Z. (2014). Geographical variations in fertility and transition to second and third birth in Britain. Advances in Life Course Research 21: 149167. doi:10.1016/j.alcr.2013.11.004.
Intergenerational transmission of fertility intentions and behaviour in Germany: The role of contagion
  • M Kotte
  • V Ludwig
Kotte, M. and Ludwig, V. (2011). Intergenerational transmission of fertility intentions and behaviour in Germany: The role of contagion. Vienna Yearbook of Population Research 9: 207-226. doi:10.1553/populationyearbook2011s207.
Is having babies contagious? Estimating fertility peer effects between siblings
  • Kuziemko
Kuziemko, I. (2006). Is having babies contagious? Estimating fertility peer effects between siblings. Princeton: Princeton University (Technical report).