Documentation for Fertility & Fertility Small Data Sets - IT Computer Science Assignment Help

Assignment Task

Task 

Documentation for Fertility and Fertility_Small Data Sets
These data are taken from the 1980 Census. These data were provided by Professor William Evans of the University of Maryland and were used in his paper with Joshua Angrist “Children and Thier Parents’ Labor Supply: Evidence from Exogenous Variation in Family Size,” American Economic Review, June 1998, Vol. 88, No. 3, 450-477. The file Fertility.dta (in STATA format) contains data on 254,654 women between the age of 21 and 35. The data in Fertility are a subset of the data used in the Angrist-Evans paper. (The file Fertility_Small contains data on a 30,000 randomly selected women from the Fertility data set. This smaller dataset is provided for students with memory limitations on their computer software.)

Question 

This question studies the effect of having many kids on labor supply of mothers. Load dataset using following command:

Descriptions for the variables in this dataset.

(e) Compare estimates of \(\beta\) in (a) and (d). Which is larger? Does that mean the confounding effect is positive or negative? (Note: as there can be other confounding factors than your example in (b), the sign of confounding effect may be different from what you would expect from (b))

(f) Check whether \(\text{samesex}\) is a weak instrument or not.

(g) Estimate a 2SLS including \(\text{agem1}\), \(\text{black}\), \(\text{hispan}\) and \(\text{othrace}\) as well. In other words, estimate:

What is the estimated value of \(\beta_1\)? Interpret the value. Do you reject the hypothesis that having more than 2 kids has no effect on hours worked?

(h) Check whether \(\text{samesex}\) is a weak instrument in (g).

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