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Is Little Brother Nothing but Trouble?: Educational Attainment, Returns to Schooling and Sibling Structure

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Author Info
Sari Pekkala

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Abstract

Family effects on an individual's labor market success have been studied by economists and sociologists. The consensus is that background matters to educational and labor market performance, but it is not clear how and why. I look at indicators of family background and sibling structure, analyzing their effect on educational attainment and earnings. Parental income, schooling and other characteristics are amongst the main determinants of schooling. Also, sibling structure and density affect education, but have no effect on earnings. Sibling density and sex composition are tested as instruments for schooling. With the IV-strategy, estimated return to schooling decreases from 9 to 7 percent for men, but increases to 11-14 percent for women.

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Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 302.

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Date of creation: 15 Apr 2003
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Handle: RePEc:fer:dpaper:302

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Related research
Keywords: Family; siblings; education; earnings;

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Find related papers by JEL classification:
D19 - Microeconomics - - Household Behavior - - - Other
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

References listed on IDEAS
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  1. Leibowitz, Arleen, 1974. "Education and Home Production," American Economic Review, American Economic Association, vol. 64(2), pages 243-50, May.
  2. Altonji, Joseph G & Dunn, Thomas A, 1996. "The Effects of Family Characteristics on the Return to Education," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 692-704, November. [Downloadable!] (restricted)
  3. Haveman, Robert & Wolfe, Barbara, 1993. "Children's Prospects and Children's Policy," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 153-74, Fall. [Downloadable!] (restricted)
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  4. Gary S. Becker & Nigel Tomes, 1976. "Child Endowments, and the Quantity and Quality of Children," NBER Working Papers 0123, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July. [Downloadable!] (restricted)
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  6. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-40, August. [Downloadable!] (restricted)
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  7. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December. [Downloadable!] (restricted)
  8. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June. [Downloadable!] (restricted)
  9. Behrman, Jere R & Pollak, Robert A & Taubman, Paul, 1982. "Parental Preferences and Provision for Progeny," Journal of Political Economy, University of Chicago Press, vol. 90(1), pages 52-73, February. [Downloadable!] (restricted)
  10. Corcoran, Mary, et al, 1990. "Effects of Family and Community Background on Economic Status," American Economic Review, American Economic Association, vol. 80(2), pages 362-66, May. [Downloadable!] (restricted)
  11. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
  12. Karsten Albæk & Rita Asplund & Stig Blomskog & Erling Barth & Björn Rúnar Guðmundsson & Vifill Karlsson & Erik Strøjer Madsen, 1999. "Dimensions of the Wage-Unemployment Relationship in the Nordic Countries: Wage Flexibility without Wage Curves," Discussion Papers 99-24, University of Copenhagen. Department of Economics. [Downloadable!]
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  13. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December. [Downloadable!] (restricted)
  14. Butcher, Kristin F & Case, Anne, 1994. "The Effect of Sibling Sex Composition on Women's Education and Earnings," The Quarterly Journal of Economics, MIT Press, vol. 109(3), pages 531-63, August. [Downloadable!] (restricted)
  15. Behrman, Jere R & Taubman, Paul, 1986. "Birth Order, Schooling, and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S121-45, July. [Downloadable!] (restricted)
  16. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S37-64, October. [Downloadable!] (restricted)
  17. Rosenzweig, Mark R, 1986. "Birth Spacing and Sibling Inequality: Asymmetric Information within the Family," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 55-76, February. [Downloadable!] (restricted)
  18. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January. [Downloadable!] (restricted)
  19. Welch, Finis, 1975. "Human Capital Theory: Education, Discrimination, and Life Cycles," American Economic Review, American Economic Association, vol. 65(2), pages 63-73, May. [Downloadable!] (restricted)
  20. Behrman, Jere R & Pollak, Robert A & Taubman, Paul, 1986. "Do Parents Favor Boys?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 33-54, February. [Downloadable!] (restricted)
  21. Acemoglu, Daron & Pischke, J. -S., 2001. "Changes in the wage structure, family income, and children's education," European Economic Review, Elsevier, vol. 45(4-6), pages 890-904, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jaakko Kiander, 2004. "Growth and Employment in Nordic Welfare States in the 1990s: a Tale of Crisis and Revival," Discussion Papers 336, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  2. Adriaan Perrels, 2004. "The Basic Service Quality Level of Transport Infrastructure in Peripheral Areas," Discussion Papers 335, Government Institute for Economic Research Finland (VATT). [Downloadable!]
    Other versions:
  3. Jaakko Kiander, 2004. "The Evolution of the Finnish Model in the 1990s: from Depression to High-tech Boom," Discussion Papers 344, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  4. Pekka Sinko, 2004. "Progressive Taxation Under Centralised Wage Setting," Discussion Papers 349, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  5. Pekka Sinko, 2003. "Subsidizing vs. Experience Rating of Unemployment Insurance in Unionized Labor Markets," Discussion Papers 319, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  6. Erkki Koskela & Matti Virén, 2004. "Government Size and Output Volatility: New International Evidence," Discussion Papers 339, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  7. Heikki Räisänen, 2003. "How to Cope with Labour Market Policy Tools in Economic Downturn: Finnish Evidence," Discussion Papers 305, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  8. Reino Hjerppe, 2003. "Social Capital and Economic Growth Revisited," Discussion Papers 307, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  9. Pekka Sinko & Juha Kilponen, 2003. "Does Centralised Wage Setting Lead into Higher Taxation?," Discussion Papers 314, Government Institute for Economic Research Finland (VATT). [Downloadable!]
    Other versions:
  10. Jaakko Kiander & Elina Berghäll, 2003. "The Finnish Model of STI Policy: Experiences and Guidelines. KNOGG Thematic Network WP4 Country Report - Finland," Discussion Papers 313, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  11. Pekka Sulamaa & Mika Widgrén, 2004. "EU-Enlargement and Beyond: A Simulation Study on EU and Russia Integration," Discussion Papers 356, Government Institute for Economic Research Finland (VATT). [Downloadable!]
    Other versions:
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