Endogenous Covariates in Duration Models and the Effect of Adolescent Childbirth on Schooling

This paper uses a hazards model with endogenous covariates to estimate the effects of family background, employment opportunity, and childbearing upon the school dropout of youths from low-income households. Family background and employment opportunity are found to be significant, but when the effect of childbearing is properly estimated, it is not significant. The authors conclude that childbearing and dropout are jointly determined, but that when this is properly accounted for, childbearing appears to exert little effect upon dropout.