The second is the lottery of living income and Vietnam era: evidence from the social security management records of Angrist on 1990 AER. This is also his doctoral thesis. This paper studies the influence of Vietnam War experience on subsequent income, which is obviously an endogenous problem. The author has noticed that when the Ministry of National Defense recruits, it draws a recruitment lottery number for men of school age, and then sets an upper limit. Those whose number is less than this upper limit are all within the scope of recruitment. So he defined whether the draft number is less than this upper limit as draft qualification. Obviously, people with conscription qualification of 1 are more likely to participate in the Vietnam War, and this number is randomly selected, so conscription qualification is a suitable tool variable. This is an example of clever use of natural experiments.
I know an interesting one recently. 1998 AER &; Labor supply of Evans' children and their parents: evidence from exogenous changes in family size. This paper studies the influence of the increase in the number of children on parents' participation in the labor market. The problem here is to find an exogenous shock that affects the number of children. Some studies in this field use twins, and some use abortion failure. Of course, the birth of twins is generally random and not designed as expected, so this is an exogenous influence that directly increases the number of children. This paper considers a factor that indirectly increases the number of children, namely the gender composition of the first two children. Why does this affect the number of children? Their theory is this: parents generally want their children's gender composition to be diversified, so if the first two children are both boys or girls, they want another child with a different gender. But if the first two children have a boy and a girl, and the task of gender diversity has been completed, there will be no more children, then families of the same sex will have more children. I think this idea is really amazing. In short, looking for tool variables is to use your brain and boldly associate.