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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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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0335.2008.00696.x
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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. 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.
  2. Steven Stern, 1995. "Estimating Family Long-Term Care Decisions in the Presence of Endogenous Child Characteristics," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 551-580.
  3. Richard V. Burkhauser & Michaela Kreyenfeld & Gert G. Wagner, 1997. "The German Socio-Economic Panel: A Representative Sample of Reunited Germany and its Parts," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 7-16.
  4. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
  5. 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.
  6. Bertola, Giuseppe, 1999. "Microeconomic perspectives on aggregate labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 45, pages 2985-3028 Elsevier.
  7. Sloan, Frank A & Picone, Gabriel & Hoerger, Thomas J, 1997. "The Supply of Children's Time to Disabled Elderly Parents," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 295-308, April.
  8. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-35, May.
  9. Steven Stern & Maxim Engers, . "Long-Term Care and Family Bargaining," Virginia Economics Online Papers 320, University of Virginia, Department of Economics.
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  11. Tatsiramos, Konstantinos, 2004. "Geographic Labour Mobility and Unemployment Insurance in Europe," IZA Discussion Papers 1253, Institute for the Study of Labor (IZA).
  12. Admati, Anat R & Perry, Motty, 1991. "Joint Projects without Commitment," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 259-76, April.
  13. Thomas Siedler & Jürgen Schupp & C. Katharina Spieß & Gert G. Wagner, 2008. "The German Socio-Economic Panel as a Reference Data Set," SOEPpapers on Multidisciplinary Panel Data Research 150, DIW Berlin, The German Socio-Economic Panel (SOEP).
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  15. Muthoo,Abhinay, 1999. "Bargaining Theory with Applications," Cambridge Books, Cambridge University Press, number 9780521576475, December.
  16. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
  17. 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.
  18. Paul Gregg & Stephen Machin & Alan Manning, 2004. "Mobility and Joblessness," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 371-410 National Bureau of Economic Research, Inc.
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