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Although previous research often assumes that household structure is exogenous, the results of this paper provide strong evidence against the validity of that assumption. This paper analyzes a household’s decision to adjust its composition by sending and receiving children and finds that a household is significantly more likely to send out a child if it experiences a negative income shock, has a better quality social network, or has additional children in a given age and gender class. Quantifying the magnitude of this impact shows that increases of one standard deviation in a household’s…