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O Brother, Where Art Thou? The Effects of Having a Sibling on Geographic Mobility and Labour Market Outcomes

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  • HELMUT RAINER
  • THOMAS SIEDLER

Abstract

This paper formulates a model to explain how parental care responsibilities and family structure interact in affecting children's mobility characteristics. Our main result is that the mobility of young adults crucially depends on the presence of a sibling. Siblings compete in location and employment decisions to direct parental care decisions towards their preferred outcome. Only children are not exposed to this kind of competition. This causes an equilibrium in which siblings exhibit higher mobility than only children, and also have better labour market outcomes. Using data from the German Socio-Economic Panel, we find evidence that confirms these patterns. Copyright (c) The London School of Economics and Political Science 2008.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 76 (2009)
Issue (Month): 303 (07)
Pages: 528-556

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Handle: RePEc:bla:econom:v:76:y:2009:i:303:p:528-556

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  1. Konstantinos Tatsiramos, 2009. "Geographic labour mobility and unemployment insurance in Europe," Journal of Population Economics, Springer, vol. 22(2), pages 267-283, April.
  2. Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
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  7. Steven Stern, 1996. "Measuring Child Work and Residence Adjustments to Parents'Long-Term Care Needs," Virginia Economics Online Papers 386, University of Virginia, Department of Economics.
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  17. Tennille J. Checkovich & Steven Stern, 2002. "Shared Caregiving Responsibilities of Adult Siblings with Elderly Parents," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 441-478.
  18. Parsons, Donald O, 1975. "Intergenerational Wealth Transfers and the Educational Decisions of Male Youth," The Quarterly Journal of Economics, MIT Press, vol. 89(4), pages 603-17, November.
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