RD design

Author

J.D.

Published

Invalid Date

Introduction

Koppensteiner and Matheson (2021) found that an intervention on education infrastructure significantly affected childbearing. Their abstract:

“This article investigates the effect that increasing secondary education opportunities have on teenage fertility in Brazil. Using a novel dataset to exploit variation from a 57 percent increase in secondary schools across 4,884 Brazilian municipalities between 1997 and 2009, the analysis shows an important role of secondary school availability on underage fertility. An increase of one school per 100 females reduces a cohort’s teenage birthrate by between 0.250 and 0.563 births per 100, or a reduction of one birth for roughly every 50 to 100 students who enroll in secondary education. The results highlight the important role of access to education leading to spillovers in addition to improving educational attainment.”

Below some descriptive statistics for our variables of interest. ‘X’ is the school density at the municipality level centered at 1997 level. ‘fem_share’ is the female income share and ‘ch_bear’ is the childbearing dummy, both measured from 2010’s demographic survey data. We bind our analysis to the sample of women (couples) aged between 20 and 31 years old that are in couple.

          vars     n mean   sd median trimmed  mad   min   max range  skew
ano*         1 74368 8.50 4.61   8.50    8.50 5.93  1.00 16.00 15.00  0.00
fem_share    2 74368 0.20 0.06   0.20    0.20 0.06  0.03  0.48  0.45  0.60
ch_bear      3 74368 0.22 0.07   0.21    0.21 0.06  0.00  0.51  0.51  0.34
x            4 74368 0.00 0.01   0.00    0.00 0.00 -0.19  0.85  1.03 10.28
          kurtosis   se
ano*         -1.21 0.02
fem_share     0.57 0.00
ch_bear       0.54 0.00
x           426.49 0.00

Female income share: early vs late child-bearers

The share of couples whose female income share equals 0.5 was 0.0781427. These were dropped to implement McCrary’s (2008) test, thus suggesting the presence of the gender identity norm. The test rejects the null in both subpopulations, early and late child-bearers.

# McCrary's test (gender identity norm):

# Early child-bearers
summary(earlyd)

Manipulation testing using local polynomial density estimation.

Number of obs =       8226640
Model =               unrestricted
Kernel =              triangular
BW method =           estimated
VCE method =          jackknife

c = 0.5               Left of c           Right of c          
Number of obs         8068304             158336              
Eff. Number of obs    5872                6160                
Order est. (p)        2                   2                   
Order bias (q)        3                   3                   
BW est. (h)           0.01                0.012               

Method                T                   P > |T|             
Robust                24.6585             0                   


P-values of binomial tests (H0: p=0.5).

Window Length / 2          <c     >=c    P>|T|
0.000                      48      32    0.0929
0.001                     128     128    1.0000
0.001                     160     176    0.4132
0.002                     240     224    0.4862
0.002                     320     304    0.5482
0.002                     432     336    0.0006
0.003                     544     496    0.1450
0.003                     608     544    0.0634
0.003                     720     768    0.2231
0.004                     880     880    1.0000
# Late child-bearers
summary(lated)

Manipulation testing using local polynomial density estimation.

Number of obs =       8226640
Model =               unrestricted
Kernel =              triangular
BW method =           estimated
VCE method =          jackknife

c = 0.5               Left of c           Right of c          
Number of obs         7607648             618992              
Eff. Number of obs    21648               24064               
Order est. (p)        2                   2                   
Order bias (q)        3                   3                   
BW est. (h)           0.01                0.012               

Method                T                   P > |T|             
Robust                16.0127             0                   


P-values of binomial tests (H0: p=0.5).

Window Length / 2          <c     >=c    P>|T|
0.000                      32      32    1.0000
0.000                     144     160    0.3897
0.001                     448     368    0.0056
0.001                     480     448    0.3089
0.001                     656     640    0.6769
0.001                     880     912    0.4640
0.001                     928     912    0.7266
0.001                    1088    1040    0.3083
0.002                    1232    1104    0.0086
0.002                    1408    1248    0.0020

Estimates at the municipality level

Before evaluating the effect of childbearing on females’ income share we present two preliminary analysis. First the relationship between school infrastructure and childbearing, and then the relationship between infrastructure and females’ income share.

  • The school density was obtained from the authors database (Koppensteiner and Matheson, 2021). It is available from 1996 to 2010, we added 1995 in order to have more infrastructure data prior the reform (in 1997)
  • The female share of income and the childbearing dummy variable were contructed by us from the 2010 demographic census. This lead to almost 9 million observations that we aggregate at the municipality level.
  • Our study focuses on a panel of (around 5k) municipalities, with the aim of assessing the impact of childbearing (rates) on the share of income received by females as of 2010.

As expected, the centered school density (running variable) shows a break in the continuity of its distribution when evaluated at school density in 1997:


Manipulation testing using local polynomial density estimation.

Number of obs =       74368
Model =               unrestricted
Kernel =              triangular
BW method =           estimated
VCE method =          jackknife

c = 0                 Left of c           Right of c          
Number of obs         27514               46854               
Eff. Number of obs    10638               20123               
Order est. (p)        2                   2                   
Order bias (q)        3                   3                   
BW est. (h)           0.001               0.002               

Method                T                   P > |T|             
Robust                -4.6296             0                   


P-values of binomial tests (H0: p=0.5).

Window Length / 2          <c     >=c    P>|T|
0.000                      20   10098    0.0000
0.000                      84   10152    0.0000
0.000                     187   10241    0.0000
0.000                     277   10372    0.0000
0.000                     424   10520    0.0000
0.000                     565   10664    0.0000
0.000                     710   10817    0.0000
0.000                     836   10954    0.0000
0.000                     987   11110    0.0000
0.000                    1150   11281    0.0000

First

The following illustrates the relationship between school infrastructure i.e. the number of schools per 100 females (in schooling age) and the child bearing rate. Both are calculated at the municipality level.

The running variable in the horizontal axis (school density) is centered at the level at the beginning of the school infrastructure intervention in 1997. The first plot provides a full overview of the sample, whereas the next one provides a zoom near the cutoff (school density in 1997).

[1] "Mass points detected in the running variable."

[1] "Mass points detected in the running variable."

A preliminary sharp RD that measures the LATE of the intervention shows a reduction in the childbearing probability of about 0.3 percent:

Sharp RD estimates using local polynomial regression.

Number of Obs.                74368
BW type                       mserd
Kernel                   Triangular
VCE method                       NN

Number of Obs.                27514        46854
Eff. Number of Obs.           20495        31737
Order est. (p)                    1            1
Order bias  (q)                   2            2
BW est. (h)                   0.006        0.006
BW bias (b)                   0.015        0.015
rho (h/b)                     0.408        0.408
Unique Obs.                   14162        21781

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -0.003     0.002    -1.884     0.060    [-0.007 , 0.000]     
        Robust         -         -    -1.916     0.055    [-0.007 , 0.000]     
=============================================================================

In other words an increase in one school per 100 female students reduces the teenager births in 0.3 births per 100 females. Very close to the reference paper magnitude, which is included by the confidence interval.

Second

Now we verify the relationship between infrastructure intervention and the female income share (expected positive).

[1] "Mass points detected in the running variable."

[1] "Mass points detected in the running variable."

A sharp RD on this relationship verifies that the intervention increased the females’ income share in about 0.76` percent:

Sharp RD estimates using local polynomial regression.

Number of Obs.                74368
BW type                       mserd
Kernel                   Triangular
VCE method                       NN

Number of Obs.                27514        46854
Eff. Number of Obs.           19105        29531
Order est. (p)                    1            1
Order bias  (q)                   2            2
BW est. (h)                   0.005        0.005
BW bias (b)                   0.013        0.013
rho (h/b)                     0.395        0.395
Unique Obs.                   14162        21781

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional     0.007     0.002     4.404     0.000     [0.004 , 0.011]     
        Robust         -         -     4.445     0.000     [0.004 , 0.011]     
=============================================================================

Manual Fuzzy RD

From the previous results we can infer the effect of childbearing on the female income share. The first and second result represented the first and second stage of a manually implemented Fuzzy RD. The LATE of childbearing on females’ income share is obtained as the ratio of both effects. An increase of one percent in the childbearing probability leads to a 2.22 percent decrease in females’ income share.

Automatic Fuzzy RD

The one-step estimator delivers a similar result:

Fuzzy RD estimates using local polynomial regression.

Number of Obs.                74368
BW type                       mserd
Kernel                   Triangular
VCE method                       NN

Number of Obs.                27514        46854
Eff. Number of Obs.           18707        28908
Order est. (p)                    1            1
Order bias  (q)                   2            2
BW est. (h)                   0.005        0.005
BW bias (b)                   0.013        0.013
rho (h/b)                     0.362        0.362
Unique Obs.                   14162        21781

First-stage estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -0.004     0.002    -2.180     0.029    [-0.007 , -0.000]    
        Robust         -         -    -2.244     0.025    [-0.008 , -0.001]    
=============================================================================

Treatment effect estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -1.906     0.926    -2.058     0.040    [-3.721 , -0.091]    
        Robust         -         -    -1.964     0.050    [-3.726 , -0.004]    
=============================================================================
Coeff P>|z|
Conventional -1.905672 0.0396133
Bias-Corrected -1.865202 0.0440033
Robust -1.865202 0.0495184

where the S.E. are clustered at the municipality level. An increase of one percent in the childbearing probability leads to a 1.8652023 percent decrease in females’ income share.

Robustness checks

Our main estimate at the municipality level assumes that a local linear regression fits well the data. We now implement additional non-linear polinomial regressions of order 2 and 3 to test for the robustness of our results. The results verify the robustness to alternative non-linear specifications:

Fuzzy RD estimates using local polynomial regression.

Number of Obs.                74368
BW type                       mserd
Kernel                   Triangular
VCE method                       NN

Number of Obs.                27514        46854
Eff. Number of Obs.           22695        35335
Order est. (p)                    2            2
Order bias  (q)                   3            3
BW est. (h)                   0.008        0.008
BW bias (b)                   0.021        0.021
rho (h/b)                     0.402        0.402
Unique Obs.                   14162        21781

First-stage estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -0.004     0.002    -2.332     0.020    [-0.008 , -0.001]    
        Robust         -         -    -2.392     0.017    [-0.008 , -0.001]    
=============================================================================

Treatment effect estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -1.756     0.811    -2.165     0.030    [-3.345 , -0.167]    
        Robust         -         -    -2.089     0.037    [-3.321 , -0.106]    
=============================================================================
Fuzzy RD estimates using local polynomial regression.

Number of Obs.                74368
BW type                       mserd
Kernel                   Triangular
VCE method                       NN

Number of Obs.                27514        46854
Eff. Number of Obs.           25070        40336
Order est. (p)                    3            3
Order bias  (q)                   4            4
BW est. (h)                   0.014        0.014
BW bias (b)                   0.031        0.031
rho (h/b)                     0.437        0.437
Unique Obs.                   14162        21781

First-stage estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -0.005     0.002    -2.572     0.010    [-0.009 , -0.001]    
        Robust         -         -    -2.610     0.009    [-0.009 , -0.001]    
=============================================================================

Treatment effect estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -1.538     0.662    -2.322     0.020    [-2.836 , -0.240]    
        Robust         -         -    -2.275     0.023    [-2.821 , -0.210]    
=============================================================================
RD p = 2
Coeff P>|z|
Conventional -1.756014 0.0303588
Bias-Corrected -1.713131 0.0346438
Robust -1.713131 0.0367305
RD p = 3
Coeff P>|z|
Conventional -1.537845 0.0202463
Bias-Corrected -1.515500 0.0221366
Robust -1.515500 0.0229294

Transmission channel

The childbearing effect on women’s income share may be channeled through their educational achievement. We test for this transmission channel by identifying the LATE of childbearing on three binary human capital indicators of literacy, high school and undergraduate studies achievements.

Effects on high school completion:
Fuzzy RD estimates using local polynomial regression.

Number of Obs.                74368
BW type                       mserd
Kernel                   Triangular
VCE method                       NN

Number of Obs.                27514        46854
Eff. Number of Obs.           20110        31070
Order est. (p)                    1            1
Order bias  (q)                   2            2
BW est. (h)                   0.006        0.006
BW bias (b)                   0.013        0.013
rho (h/b)                     0.439        0.439
Unique Obs.                   14162        21781

First-stage estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -0.003     0.002    -1.941     0.052    [-0.007 , 0.000]     
        Robust         -         -    -2.043     0.041    [-0.007 , -0.000]    
=============================================================================

Treatment effect estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -2.691     1.422    -1.893     0.058    [-5.478 , 0.095]     
        Robust         -         -    -1.589     0.112    [-5.220 , 0.546]     
=============================================================================
                   Coeff      P>|z|
Conventional   -2.691156 0.05836568
Bias-Corrected -2.336942 0.10021961
Robust         -2.336942 0.11216762
Effects on undergraduate studies completion:
Fuzzy RD estimates using local polynomial regression.

Number of Obs.                74368
BW type                       mserd
Kernel                   Triangular
VCE method                       NN

Number of Obs.                27514        46854
Eff. Number of Obs.           19790        30615
Order est. (p)                    1            1
Order bias  (q)                   2            2
BW est. (h)                   0.005        0.005
BW bias (b)                   0.015        0.015
rho (h/b)                     0.356        0.356
Unique Obs.                   14162        21781

First-stage estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -0.003     0.002    -1.985     0.047    [-0.007 , -0.000]    
        Robust         -         -    -1.992     0.046    [-0.007 , -0.000]    
=============================================================================

Treatment effect estimates.

=============================================================================
        Method     Coef. Std. Err.         z     P>|z|      [ 95% C.I. ]       
=============================================================================
  Conventional    -1.262     0.646    -1.953     0.051    [-2.529 , 0.004]     
        Robust         -         -    -1.913     0.056    [-2.566 , 0.031]     
=============================================================================
                   Coeff      P>|z|
Conventional   -1.262312 0.05076932
Bias-Corrected -1.267318 0.04985907
Robust         -1.267318 0.05580338

Pseudo panel analysis

We observe couples across different age cohorts in our data. Childbearing prevalence is heterogeneous across cohorts but seems to stabilize at 26 years of age :

It can be argued that older women should cumulate greater effects on their income share, so we perform the Fuzzy RD on every age-cohort (from 20 to 30) at the municipality level i.e. each RD estimate is performed over a cross-section of muncipalities at a given age-cohort.

AgeGroup LATE SE p_value
2 23 -0.2846346 0.1622724 0.0794212
7 26 -1.2435483 0.5554635 0.0251717
10 30 -1.9651224 0.7680608 0.0105109

We find that not every age-cohort identifies statistically significant effects. Focusing on those age-cohorts that are significant at a 10% level (23, 26 and 30 years of age) clearly suggest that the childbearing effects do increase with women’s age