Your task is to investigate how fertility affects labour supply. In particular, you will examine how a woman's labour supply falls when she has more than two children. Your answers should include your regression results. Remember to conduct the relevant tests to support your results as well. Furthermore, use robust standard errors in all your regressions.
What does it mean that I should use robust standard errors in all my regressions?
A robust standard error is a different way of calculating the standard error of a regression coefficient in a regression model. It is also referred to as a sandwich standard error, an Eicker-White standard error, a Huber standard error, a heteroscedasticity consistent standard error, and probably a few other names. Unlike the default model-based way of calculating standard errors, the robust standard error uses the actual squared residuals instead of expected variance. Most software have implementations of it, so make good use of your search tool and documentation.
