Selectivity of Fertility and the Determinants of Human Capital Investments: Parametric and Semiparametric Estimates

摘要

The paper assesses the importance of heterogeneity and selective fertility in altering estimates and interpretations of the determinants of the human capital of children. It presents a sequential model of human capital investments in children, incorporating endogenous fertility and heterogeneity in human capital endowments to illustrate the fertility selection problem and issues of identification. Empirical results based on parametric and semi-parametric estimates of selectivity models applied to data on birthweight and schooling in Malaysia indicate that the hypothesis of no fertility selection is strongly rejected, with mothers having higher birthweight children tending to have substantially lower birth probabilities (negative birth selectivity). As a consequence, the positive association between mother's schooling and birthweight is substantially underestimated and the positive effects of delaying childbearing overestimates when birth selectivity is not taken into account. (Copyright (c) The World Bank, 1990.)