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Birth Order and the Intrahousehold Allocation of Time and Education

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Author Info
Mette Ejrnæs (CAM, University of Copenhagen)
Claus C. Pörtner (University of Washington)

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Abstract

This paper develops a model of intrahousehold allocation with endogenous fertility, which captures the relationship between birth order and investment in children. It shows that a birth order effect in intrahouse hold allocation can arise even without assumptions about parental preferences for specific birth orders of children or genetic endowments varying by birth order. The important contribution is that fertility is treated as endogenous, a possibility that other models of intrahousehold allocation have ignored. The implications of the model are that children with higher birth orders (that is, who are born later) have an advantage over siblings with lower birth orders, and that parents who are inequality-averse will not have more than one child. The model furthermore shows that not taking account of the endogeneity of fertility when analyzing intrahousehold allocation may seriously bias the results. The effects of a child's birth order on its human capital accumulation are analyzed using a longitudinal data set from the Philippines that covers a very long period. We examine the effects of birth order on both number of hours in school during education and completed education. The results for both are consistent with the predictions of the model. Copyright (c) 2004 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 86 (2004)
Issue (Month): 4 (04)
Pages: 1008-1019
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Handle: RePEc:tpr:restat:v:86:y:2004:i:4:p:1008-1019

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  1. Claus Portner, 2006. "Gone With the Wind? Hurricane Risk, Fertility and Education," Working Papers UWEC-2006-19-R, University of Washington, Department of Economics, revised Feb 2008. [Downloadable!]
  2. Helene Bie Lilleør, 2008. "Can Future Uncertainty Keep Children Out of School?," CAM Working Papers 2008-06, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
  3. Hatton, Timothy J. & Martin, Richard M., 2008. "The Effects on Stature of Poverty, Family Size and Birth Order: British Children in the 1930s," IZA Discussion Papers 3314, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Shelly Lundberg & Jennifer Romich & Kwok P. Tsang, 2007. "Decision-Making by Children," IZA Discussion Papers 2952, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Lindahl, Lena, 2002. "Do birth order and family size matter for intergenerational income mobility? Evidence from Sweden," Working Paper Series 5/2002, Swedish Institute for Social Research. [Downloadable!]
  6. Booth, Alison L & Kee, Hiau Joo, 2006. "Birth Order Matters: The Effect of Family Size and Birth Order on Educational Attainment," CEPR Discussion Papers 5453, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Jung Hur & Yohanes E. Riyanto, 2007. "Organizational Structure and Product Market Competition," Departmental Working Papers wp0705, National University of Singapore, Department of Economics. [Downloadable!]
  8. Kırdar, Murat G. & Dayıoğlu, Meltem & Tansel, Aysıt, 2007. "Impact Of Sibship Size, Birth Order, And Sex Composition On School Enrollment In Urban Turkey," MPRA Paper 2755, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  9. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2002. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," Working Papers 486, Research Seminar in International Economics, University of Michigan. [Downloadable!]
    Other versions:
  10. Alison L. Booth & Hiau Joo Kee, 2006. "Intergenerational Transmission of Fertility Patterns in Britain," IZA Discussion Papers 2437, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Khanam, Rasheda & Rahman, Mohammad Mafizur, 2005. "Child Work and Schooling in Bangladesh: The Role of Birth Order," MPRA Paper 8009, University Library of Munich, Germany. [Downloadable!]
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