We will briefly comment on the estimation of standard errors. When we use community variables, instead of fixed effects, we adjust for clustering at the municipality level. This takes into account the spatial correlation of the error terms of every children living in the same municipality. When we use municipality fixed effects, we will adjust the standard errors to take into account the correlation of error terms of children living in the same household, as any correlation at the municipality level will be considered by the fixed effects. The results correct for the different probability of selection in the.
