1 Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is kids %3D Bo + Bieduис + и, where u is the unobserved error. (i) What kinds of factors are contained in u? Are these likely to be correlated with level of education? (ii) Will a simple regression analysis uncover the ceteris paribus effect of education on fertility? Explain.

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1 Let kids denote the number of children ever born to a woman, and let educ denote years of education
for the woman. A simple model relating fertility to years of education is
kids %3D Bo + Bieduис + и,
where u is the unobserved error.
(i) What kinds of factors are contained in u? Are these likely to be correlated with level of education?
(ii) Will a simple regression analysis uncover the ceteris paribus effect of education on fertility?
Explain.
Transcribed Image Text:1 Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is kids %3D Bo + Bieduис + и, where u is the unobserved error. (i) What kinds of factors are contained in u? Are these likely to be correlated with level of education? (ii) Will a simple regression analysis uncover the ceteris paribus effect of education on fertility? Explain.
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