I am doing a survey study on factors related to child health on around 7000 individuals. All dependent variables are binary and exploratory variables are binary and categorical.
One of the explanatory variables suffered from endogeneity bias (education is correlated with error term). I used ivprobit to overcome endogenity bias. Now I checked few published study related to child health. Almost all used instrumental variables and fixed effects models.
I need to know — can I use only instrumental variable regression alone? Or must I have to use both fixed effects as well after IV to overcome endogeneity and heterogeneity?