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Women’s Empowerment and Family Health: Estimating LATE with Mismeasured Treatment

Rossella Calvi (), Arthur Lewbel () and Denni Tommasi

No 959, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: We study the impact of women’s decision making power on family health in India. We define treatment as a woman having primary control over household resources, using changes in inheritance laws as an instrument. Due to measurement difficulties and sharing of goods, treatment cannot be directly observed and must be estimated using a structural model. Treatment mismeasurement may therefore arise from model misspecification and estimation errors. We provide a new estimation method, MR-LATE, that under some conditions can con- sistently estimate local average treatment effects when treatment is mismeasured. When such conditions are not satisfied, MR-LATE is still effective at reducing estimation bias. We find that women’s control of household resources improves their and their children’s health at no cost to men’s health. We also show that accounting for measurement error in the estimated treatment is empirically important.

Keywords: causality; LATE; structural model; collective model; resource shares; bargaining power; health (search for similar items in EconPapers)
JEL-codes: D13 D11 D12 C31 I32 (search for similar items in EconPapers)
Date: 2018-05-30, Revised 2019-12-31
New Economics Papers: this item is included in nep-dev, nep-ecm and nep-hea
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