ECON 151 Lecture Notes - Lecture 20: Assortative Mating, Productive Efficiency, Birth Weight

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11 Nov 2020
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Birthoutomes = 0 + 1iv2+ 2iv4+ 3age+ 4cohort+ 5county birthyear + 6income + Iv 2 is the proportion of 2 years college per 18-22 year-olds, Iv 2 is the proportion of 4 years college per 17 year old women, Control for income: net effect of health, purified from the income effect. Fixed effect: cohort and country*birthyear => capture the time trend, the specific cohort and county effect. 2 iv: we say the model is over-identified: we need only one iv since we only want to estimate one parameter. 10 years of education = 5% reduction in the probability of having a low birth weight (significant) Married is higher, husband"s education is higher. Iv confirmed that 1 additional of education = reduce low birth weight, prenatal care, smoking during pregnancy. Direct evidence that education affects at time t and the future + kids" future. Parents transmit their education to their kids (their future)

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