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Birth order, schooling, and earnings.

J R Behrman, P Taubman

    Journal of Labor Economics
    |July 1, 1986
    PubMed
    Summary
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    Birth order influences educational attainment and earnings for young adults. While later-born children may be favored by parental preferences, first-borns benefit from stronger endowment effects, impacting sibling outcomes.

    Area of Science:

    • Socioeconomics
    • Economics
    • Human Capital Theory

    Background:

    • Birth-order effects are widely theorized to impact socioeconomic outcomes such as earnings and educational attainment.
    • Existing research often debates the mechanisms driving these effects, including parental preferences and resource allocation within families.

    Purpose of the Study:

    • To investigate the empirical evidence for birth-order effects on schooling and earnings in young U.S. adults.
    • To differentiate between explanations of birth-order effects, specifically focusing on parental preferences versus sibling endowment effects.

    Main Methods:

    • Analysis of U.S. adult data, adjusting for age to assess schooling and earnings.
    • Examination of intrahousehold resource allocation patterns to understand how birth order influences outcomes.
    Keywords:
    AmericasBirth OrderDeveloped CountriesDeveloping CountriesEconomic FactorsEducational StatusFamily And HouseholdFamily CharacteristicsFamily RelationshipsFinancial ActivitiesIncomeMicroeconomic FactorsNorth AmericaNorthern AmericaResource AllocationSocioeconomic FactorsSocioeconomic StatusUnited States

    Related Experiment Videos

  • Econometric modeling to test the robustness of observed effects across different specifications.

    • Main Results:

    • Empirical evidence supports birth-order effects on age-adjusted schooling.
    • Observed birth-order effects on earnings for young adults were found, though not consistently robust across all models.
    • Intrahousehold allocations suggest that first-borns benefit from stronger endowment effects, counteracting parental preferences that may favor later-borns.

    Conclusions:

    • Birth order significantly impacts educational attainment and, to a lesser extent, earnings for young adults.
    • Sibling endowment effects, particularly favoring first-borns, play a crucial role in shaping these outcomes, even when parental preferences might suggest otherwise.