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Practical causal analysis for the treatment timing effect on doubly censored duration: effect of fertility on work span

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  • Nikolay Angelov
  • Per Johansson
  • Myoung‐jae Lee

Abstract

We present a practical causal framework to estimate the effects of a treatment and its timing on a doubly censored response. We then apply the methodology to find the effect of fertility on work duration where, not just fertility itself, but the timing of fertility should matter greatly. Since fertility and its decision of timing are chosen by the individual, it is likely to be endogenous. We use a populationwide data set over mothers with two children to address the endogeneity issue by using the first two children's same‐sex instrument in a ‘control function’ setting. We find that having a third child reduces the average labour market work duration, and that the magnitude of the effect increases monotonically with the waiting time between the second and third children. Moreover, the negative effect varies substantially over education and second‐birth age, being stronger for mothers with higher education and lower second‐birth age.

Suggested Citation

  • Nikolay Angelov & Per Johansson & Myoung‐jae Lee, 2019. "Practical causal analysis for the treatment timing effect on doubly censored duration: effect of fertility on work span," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 182(4), pages 1561-1585, October.
  • Handle: RePEc:bla:jorssa:v:182:y:2019:i:4:p:1561-1585
    DOI: 10.1111/rssa.12474
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    Cited by:

    1. Myoung-Jae Lee & Hyae-Chong Shim & Sang Soo Park, 2023. "Regression Discontinuity with Integer Score and Non-Integer Cutoff," Korean Economic Review, Korean Economic Association, vol. 39, pages 73-101.
    2. Myoung‐jae Lee, 2021. "Instrument residual estimator for any response variable with endogenous binary treatment," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 83(3), pages 612-635, July.

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