RT Journal Article SR Electronic T1 Testing the External Effect of Household Behavior JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 890 OP 915 DO 10.3368/jhr.44.4.890 VO 44 IS 4 A1 Hongbin Li A1 Junsen Zhang YR 2009 UL http://jhr.uwpress.org/content/44/4/890.abstract AB This paper tests the external effect of household childbearing behavior by drawing on microfertility data from China. The test is executed by regressing one woman’s fertility on the average fertility of neighboring women. China’s unique affirmative birth control policy provides us with quasi-experimental fertility variation that facilities identification. We present two identification methods: (1) Testing the external effect from the dominant Han Chinese on minority women by using the fertility fine as an instrumental variable; and (2) identifying the external effect using an instrumental variable that is based on the difference-in-differences. We find that fertility has a large external effect.