Abstract
The authors use an econometric model of fertility and children's activities to examine the causal effects of fertility on a child's activities taking the endogenously of fertility into account. The author's specification is nonlinear and simultaneous and uses latent factors to allow for unobserved influences on fertility to affect a child's activities. The authors apply maximum simulated likelihood (MSL) techniques to estimate the parameters of our models. The authors find that the effect of fertility has a large downward bias in naive models. The effect of fertility on the probability of attending school is twice as large once it's endogenously is taken into account. The effect of fertility on the probability of work changes sign and becomes statistically significant.
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