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In the second chapter, I study the effect of alcohol consumption on youth fertility. Alcohol consumption is often believed to be a cause of risk-taking behaviors. Despite a well-established correlation between alcohol intake and various risk-taking sexual behaviors, the causality remains unknown. I attempt to establish a causal effect of alcohol use on the likelihood of pregnancy among youth using a variety of models ranging from a fully parametric to a semi-parametric discrete factor approximation method. Using data on 17-28 year-old women from the National Longitudinal Survey of Youth, I find that even after controlling for unobserved heterogeneity alcohol consumption increases the likelihood of pregnancy by 4.7 percentage points. This positive effect was observed in the semi-parametric model where the cumulative distribution of heterogeneity was approximated by a 4-point discrete distribution. Quantitatively similar but statistically weaker estimates were obtained from the two-stage least squares model and the bivariate probit model. Finally, models that ignore the effect of unobserved heterogeneity failed to establish this relationship.